Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed.
This type of rating law is called
A) prior approval.
B) file-and-use.
C) use-and-file.
D) flex rating.
Question 2
Mutual Property Insurance Company has a surplus of 2 million. According to a conservative rule, how much in new net premiums can Mutual Property Insurance Company safely write?
A) 2 million
B) 8 million
C) 10 million
D) 20 million
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