What is the definition of File-and-Use States?

File-and-Use States refer to states where insurance companies can file for changes in their premiums and immediately put them into effect without having to wait for the approval of the state regulator such as the state insurance commission. This is in contrast with states that are not file-and-use states, where the insurance company has to wait for their new proposed premiums rates to be approved before they can apply these to their insurance policies.

The principle behind this is that the state believes that it is market competition that will regulate the rates, as insurance companies compete with each other for clients. The more attractive the rates these companies provide, the more clients they can get.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage