Question

Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed. This type of rating law is called ____________.

Answer 1

use-and-file rating law

Step-by-step explanation:

File-and-use rating laws are insurance rules that allow an insurance company to use new rates before they are approved by the state. File-and-use rating laws allow the insurer to use new rates immediately, with the risk that any rate change will be mitigated if the insurance regulator determines the change is not appropriate.