Exam DISC-IA Practice Question 244
Study guide: Exam DISC-IA
A state regulates homeowners rates under a flex rating law, requiring prior approval of any rate change of more than 7% above or below the rates on file. An insurer plans a 5% increase in one territory and a 10% increase in another. Which changes need prior approval?
- A) Both, because every rate change in a flex rating state needs prior approval
- B) Neither, because flex rating means rates are not filed
- C) Only the 10% increase
- D) Only the 5% increase
Answer this question and see the worked solution