The cost of credit-default swap insurance on the lowest- rated state after California has risen 16 percent to $330,000 to protect $10 million of debt, from $285,000 on Dec. 3, according to data compiled by Bloomberg. That's the most expensive since July 12, when it reached $335,000."They're punishing all the states but they're punishing the worst states more," said Alan Schankel, director of fixed- income research for Janney Montgomery Scott LLC, a money management firm based in Philadelphia.