"Imagine if all of us dealt with educated consumers who new the risks of dealing with unlicnesed and uninsured contractors."
New Jersey, along with other states have taken that route, here in New Jersey the Division of Consumer Affairs is informing both consumers, and law enforcement, on the existing laws, that protect them, and they have become more active in enforcement this past year.
As contractors, we should also make an effort to inform the consumer, of the risks of dealing with unlicnesed, and uninsured contractors.
Keep in mind what Bob has been trying to say, not all states, have the same laws, and differ in how you can operate.