What does the file and use method allow insurers to do with rates?

The file and use method allows insurers to implement rates immediately upon filing them with the state regulatory authority. This approach streamlines the regulatory process, enabling insurers to adjust their rates more flexibly in response to market conditions or changes in underwriting practices. It is essential for maintaining competitiveness and ensuring that insurance products remain viable and accessible to consumers.

This method contrasts with other regulatory processes that may require prior approval before rates can be used, thus limiting how quickly an insurer can react to changing conditions. By utilizing the file and use system, insurers can be more agile in their pricing strategies while still providing oversight to ensure that rates are not discriminatory or unjustly high.