Final answer:
Government regulation of insurance companies serves multiple purposes, including keeping prices low, protecting consumers, and ensuring fair access to coverage.
Step-by-step explanation:
Government regulation of insurance companies serves multiple purposes. One of the main goals is to keep insurance prices low by ensuring fair competition among insurance providers. Regulation also aims to protect consumers by establishing minimum standards of coverage and financial stability for insurance companies.
Additionally, government intervention in insurance markets may require individuals to purchase certain types of insurance, which helps to prevent adverse selection and ensure that everyone has access to coverage.