Under One Type of Rate Regulation,insurers Are Not Required to File

question 4

Multiple Choice

Under one type of rate regulation,insurers are not required to file their rates with the state insurance department.However,insurers may be required to furnish rate schedules and supporting data to state officials.A fundamental assumption underlying this type of rating law is that market forces will determine the price and availability of insurance,rather than discretionary acts of regulators.This type of rate regulation is called

• A)a flex-rating law.
• B)a prior-approval law.
• C)a file-and-use law.
• D)no filing required.

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Definitions:

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Supply Chains

A network of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of raw materials from the supplier to the manufacturer, and ultimately to the end user.

Competent Parties

Individuals or entities that are legally able to enter into a binding contract, having the necessary legal authority and mental capacity.

Legal Subject Matter

The specific theme, topic, or focus of a legal document or discussion, often defining the scope of legal rights and duties.