General insurance Types of state rating laws for insurance companies

Phabbyfundz

Active member
— Prior approval; the insurer must file rates, rules and so on with state regulators. Depending on the statute, the filing becomes effective when a specified waiting period elapse if the state regulators does not take specific actions on the filing it is deemed approved automatically.
— Modified prior approval; this a hybrid of prior approval and file and use laws. If the rate revisions is based solely on a change in laws experience file and use may apply. However, if the rate revisions is based on a change in expense relationship or rate classification then prior approval may apply.
— Flex rating; the insurer may increase or decrease a rate within a flex band or range without approval of the states regulator. Generally, either file and use or the use and file provisions apply.
 

Mandy96

Valued Contributor
Well there are several state laws that guides it in order to avoid any mischievous act between the insured and the insurer. I really don’t know if these rules also bound the ones in nigeria because I am sure people avoid to get insured in my country not because they are ignorant but they feel cheated
 

btaliat

VIP Contributor
There is always the need for government to have some forms of agreement with the insurance company. This will make the insurance less monopolistic in nature and make the citizens who will want to partner with insurance company feel safeguarded based on the fact that government is there for them.
 

Chibson

VIP Contributor
There are different laws for different kinds of insurance. Insurance laws differ from country to country. for an insurance company to operate effectively such laws and measures must be met in order to provide an effective coverage for insurers. There are also laws for the insurer to obey before qualifying for insurance coverage.
 

Wisdom01

Valued Contributor
The flex rating seems to be the best for the company, as the insurance company would be able decrease and increase the rate as they like without any approval ,but I am quite sure that there must be some certain condition that must be met before the policy to do so is granted to the insurance company
 

btaliat

VIP Contributor
There is need for quick approval on the first explained state law which is prior approval. This will prevent corruption because most insurance companies will want their policies and rules to be approved before the elapsed time. But the other clause that permit the insurance company to pass into law without the state approval
 
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