NAIC’s Compendium of State Laws on Insurance Topics
RATE FILING METHODS FOR PROPERTY/CASUALTY INSURANCE, WORKER’S COMPENSATION, TITLE
Rates must be filed with and approved by the state insurance department before they can be used. Approval can be by means of a deemer provision, which indicates approval if rates are not denied within a specified number of days.
Modified Prior Approval
Rate revisions involving change in expense ratio or rate relativity require prior approval. Rate revisions based on experience only are subject to “file and use” laws. Prior approval of rates required only if they exceed a certain percentage above (and sometimes below) the previously filed rates.
File and Use
Rates must be filed with the state insurance department prior to their use. Specific approval is not required but the department retains the right of subsequent disapproval.
Use and File
Rates must be filed with the state insurance department within a specified period after they have been placed in use.
Rates are not required to be filed with or approved by the state insurance department. However, the company must maintain records of experience and other information used in developing the rates and make these available to the commissioner upon his request.
DEFINITIONS OF RATING LAWS
This chart does not constitute a formal legal opinion by the NAIC staff on the provisions of state law and should not be relied upon as such. Every effort has been made to provide correct and accurate summaries to assist the reader in targeting useful information. For further details, the statutes and regulations cited should be consulted. The NAIC attempts to provide current information; however, readers should consult state law for additional adoptions.
© 2006 National Association of Insurance Commissioners