I tried to find the rules for when an insurance company can drop or cancel a policy. In several pages of results I did not find any links that indicated a company could drop you because you were unprofitable.
I did find this::
"
Health care insurance policies can be cancelled if there is a material omission or misrepresentation made by a policyholder in the application for coverage. Even if the policy is issued and premiums are paid, the insurer can cancel the policy later if they discover that the policyholder did not disclose significant medical history in the application. The result is that the policy is canceled, the insurer does not have to pay for the care that was rendered, and the premiums paid on the policy are returned to the policyholder (minus a reasonable cost associated with the period of time during which the policy was in force).
Are There Any Time Restrictions On When My Insurance Company Can Cancel My Policy?
Generally, state law and the policy itself provide that the insurer has only 2 years from the date of application to cancel it. If discovery of the omission or misrepresentation occurs after the passage of the 2 year period of "contestability," the insurer is generally out of luck and cannot cancel the policy. After that, an insurer may only be able to contest a claim on the basis of intentional fraud on the part of the policyholder."
Which brings to mind the stories we hear about insurance companies that drop people based on made-up accusations of fraud. Which they would of course not have to make up if they could just drop one for not being profitable.
It just doesn't pass my smell test when it is said that they can drop you for being unprofitable. But I am very open to seeing some evidence.