What does File-and-Use Rating Laws mean? Read on to discover the definition & meaning of the term File-and-Use Rating Laws - to help you better understand the language used in insurance policies.
File-and-Use Rating Laws
File-and-use rating laws refer to certain insurance regulations that enable an insurance company to use the new rates it has formulated prior to receiving approval from the state governments in the US. Because of these regulations, insurance companies have the liberty to implement the new rates on all their products. However, the insurance regulatory body continues to have the authority for striking down or canceling any rate change. Typically, insurance regulatory bodies would strike down rate changes if, in their view, the insurance company has no basis for justifying the rate change.
We hope the you have a better understanding of the meaning of File-and-Use Rating Laws.