Question

The file-and-use approach allows an insurer to begin using a new rate as soon as it is filed with the commissioner.

A. True
B. False

Answer 1

The file-and-use approach allows insurers to use new rates immediately after filing with the insurance commissioner, but the rates can still be disapproved later. This depends on each state's specific regulations.

Step-by-step explanation:

The file-and-use approach in insurance is a regulatory process in which an insurer can begin using new rates immediately after they have been filed with the state insurance commissioner without waiting for express approval. However, the commissioner retains the authority to disapprove the rate change after it has been filed and used. Whether this approach is valid depends on the laws of the specific state in which the insurance company operates, as regulatory practices vary by state.