Insurers ask homeowners who seek insurance whether there is a dog in the house, and the breed. Some insurers charge more for some breeds, and refuse to even write insurance for homes with specific breeds that are most dangerous. The Alpha Insurance Company offers to write homes with these vicious breeds, and proposes to charge $3,000 extra premium, because no one else will insure these dogs. Alpha Insurance submits its rate request to the state department of insurance. Discuss how the department of insurance should evaluate this rate request.