Under One Type of Rate Regulation,insurers Do Not Have to Register

question 47

Multiple Choice

Under one type of rate regulation,insurers do not have to register their rates with state regulatory authorities.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:

Estimated Life Span

The expected duration of time that an organism, object, or system is projected to remain functional or alive.