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

---

Definitions:

Social Benefits

The total gains that accrue to society from an economic transaction or policy, encompassing both direct and indirect effects.

Pollution

The contamination of the natural environment, leading to adverse effects on ecosystems, human health, and quality of life.

Market Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the total quantity demanded by all consumers in the market.

Willingness To Pay

The maximum amount an individual is prepared to sacrifice to procure a good or service or to avoid something undesirable.