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:

Inoculation Theory

A theory suggesting that exposure to a weakened form of an argument strengthens people's ability to refute stronger, future arguments.

Cognitive Dissonance

A psychological state in which an individual experiences discomfort or conflict due to holding contradictory beliefs, attitudes, or values at the same time.

Social Judgment

The process by which individuals evaluate and form opinions about other people and social situations.

Rejection-Then-Retreat

A persuasion technique where a larger request is made knowing it will be rejected in order to increase the likelihood that a smaller subsequent request will be accepted.