Under What Type of Rate Regulation Are Insurers Required to Obtain

question 40

Multiple Choice

Under what type of rate regulation are insurers required to obtain approval of rates before using them if the rate change exceeds a specified predetermined range?

• A)flex-rating law
• B)prior-approval law
• C)file-and-use law
• D)use-and-file law

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Definitions:

Federal Law

Legislation that is enacted by the national government and applies throughout the country, overriding state and local laws where there is conflict.

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community or public.

Unreasonable Manner

Acting or behaving in a way that is not sensible, fair, or rational, often leading to negative consequences or judgments.

Deadly Force

The use of force that is likely to cause, or intended to cause, death or serious bodily harm.