Match each state insurance rate regulation concept with its correct statutory description.
- Prior Approval LawThe insurer must obtain explicit authorization from the Department of Insurance before implementing any new rate or policy form.
- File-and-Use LawThe insurer may implement new rates immediately upon their submission to the Department of Insurance, subject to subsequent regulatory review.
- Use-and-File LawThe insurer may introduce new rates into the market first, but is required to submit the formal filing to the regulator within a specified timeframe afterward.
- Deemer ProvisionA statutory mechanism under which a submitted rate or form is automatically authorized if the Commissioner fails to act on it within a designated waiting period.
Answer
Prior Approval Law matches with obtaining explicit authorization before implementation. File-and-Use Law matches with implementing immediately upon submission. Use-and-File Law matches with introducing rates first, then filing within a timeframe. Deemer Provision matches with automatic authorization if the Commissioner fails to act.
Each rate regulation concept defines a specific chronological and procedural relationship between the insurer and the Department of Insurance. Prior approval requires authorization first. File-and-use requires submission first, allowing immediate use. Use-and-file allows use first, requiring submission shortly after. The deemer provision acts as a regulatory failsafe for prior approval and waiting periods.
Step-by-Step Solution
Key Concept
Rates and Forms Regulation: Rate Filing Systems
Estimated Time:1m 30s