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.
— 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.