Christine Veliz, who owns an insurance agency of that name in Newark, told him he would probably have to go into the state-run pool for high-risk drivers at about $3,400 a year, nearly three times what he had been paying.

To solve the auto insurance problem, he would disband the state-run pool that insures drivers who cannot get coverage elsewhere and would closely regulate the industry.

The company will drop several lawsuits against the state, and the state will sever Allstate from a lawsuit involving the defunct state-run pool for high-risk drivers.

It was particularly unhappy with a requirement that automobile insurers reimburse the state for part of the estimated $3 billion in debt incurred by the state-run pool for high-risk drivers.

Until that time, the ACA provides funds for state-run high-risk pools for those with previously existing conditions.

That forces customers into state-run pools where the rates are even higher.

These drivers ended up in a special state-run pool with premiums set far below the real cost.

While these deductibles may well be here to stay, it ought to be possible to replace the lost insurance coverage with a state-run pool.

The Market Transition Facility replaced the Joint Underwriting Association and was intended to be a clearing house to move drivers out of the state-run high-risk pool and into the private insurance market.

For many homeowners, policies were unavailable, forcing them to turn to state-run pools that charged high rates for minimal coverage.