Under One Type of Rating Law,insurers Are Free to Change

question 49

Multiple Choice

Under one type of rating law,insurers are free to change rates and to use modified rates immediately.However,the new rate must be filed with regulators within a specified period,such as 60 days after the modified rate is employed.This type of rating law is called

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

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Definitions:

Arbitration

is the process of resolving disputes outside courts, where a neutral third party makes a decision after hearing both sides.

Trial

A formal examination of evidence before a judge, and typically a jury, in order to decide guilt in a case of criminal or civil proceedings.

Arbitration Award

The decision made by an arbitration panel or arbitrator at the conclusion of an arbitration proceeding.

Fraud

Deliberate deception or trickery intended to gain an unfair or unlawful advantage, typically involving financial transactions.