After a state legislature is presented with compelling evide…
After a state legislature is presented with compelling evidence that insurance companies that offer burglary insurance policies are charging people different premiums based on race, the legislature passes a statute requiring every insurance company offering burglary insurance policies in the state to charge a uniform rate for customers who reside in the same county in the state. As long as it complies with this requirement, a company is free to charge whatever rate the market will bear for its burglary insurance policies. There are no federal laws covering uniform rates. An insurance company that offers burglary policies in the state but that is located in a neighboring state has filed suit in federal district court against state officials to challenge the statute on constitutional grounds. The insurance company wishes to charge customers residing within the same county varying rates for burglary insurance policies. What is the likely result of the suit?
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