Which method allows insurers to use rates prior to state approval?

The File and Use method allows insurers to implement their rates before receiving formal approval from the state regulatory authority. This approach provides insurers with quick access to market rates and enables them to adjust their pricing in response to market demands or competitive pressures without the long delays often associated with obtaining prior approval.

Under this method, insurers must file their intended rates with the state regulatory body, which may provide oversight but does not require prior approval before the rates can be implemented. This can be advantageous for both insurers, who can respond swiftly to changing market conditions, and consumers, who benefit from timely access to insurance products at potentially more competitive rates.

The other methods, such as Review and Use and Prior Approval, involve varying degrees of regulatory oversight and typically require insurers to wait for approval before implementing rates. Use and File is similar to File and Use, but varies by state in terms of how it allows for rate changes and the timing of when rates must be filed. Therefore, understanding the nuances of each method is critical for assessing how quickly insurers can introduce new rates into the market.