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In Business / College | 2025-07-03

Robert is trying to set up an individual disability insurance policy and wants to understand how the premiums are regulated. How are premium rates for individual disability insurance policies regulated according to the Insurance Commissioner?

A. The Commissioner sets and fixes the premium rates.
B. The rates are filed with the Commissioner, but not regulated or fixed by them.
C. The Commissioner has no role in the premium rates for individual disability policies.
D. The Commissioner determines the premiums after a notice and hearing.

Asked by summersegovia

Answer (2)

The Insurance Commissioner generally oversees the filing of premium rates for individual disability insurance policies but does not set or regulate these rates directly. Insurers must file rates for approval, but the Commissioner does not have the authority to fix them. This allows for some level of market determination in setting premiums. ;

Answered by GinnyAnswer | 2025-07-03

The Insurance Commissioner oversees the filing of premium rates for individual disability insurance but does not directly regulate or fix these rates. Therefore, the correct option is B: 'The rates are filed with the Commissioner, but not regulated or fixed by them.' This allows insurance companies to determine their own premium rates based on market conditions.
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Answered by Anonymous | 2025-07-04

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