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

The use and file method is a regulatory approach that provides insurers with the flexibility to implement rates in the market as long as those rates are subsequently filed with the state insurance department within a designated time frame. This means that insurers can respond swiftly to market conditions or consumer demands by using rates immediately, which can be crucial for competitive positioning. However, the requirement to file those rates afterwards ensures that the regulatory authority has oversight and can evaluate the appropriateness of those rates for consumers.

The other choices do not accurately describe the use and file method. The indefinite use of rates without filing is not permitted under this method, as it ensures accountability. Similarly, implementing higher rates than those filed would not comply with the regulatory framework designed to protect consumers from excessive charges. Finally, the act of filing rates only after they have been implemented doesn't align with the requirements of the use and file methodology, which mandates that filing occur within a specific period after the rates are put into effect.