P&CIllinoiseasy
Under Illinois's rate regulation framework for most property and casualty lines, what approval process must insurers follow before using a new rate?
APrior approval from the IDOI Director is required for all P&C rates
No prior approval is required; Illinois operates an open competition system
CRates must be approved by the Illinois General Assembly
DRates require a public hearing before each filing
Why this is the answer
Illinois rate regulation for most property and casualty lines operates under an open competition system codified in 215 ILCS 5/Article XXIV ½. Insurers may begin using new rates without prior approval from the IDOI Director, although rates must still meet the statutory standard of not being excessive, inadequate, or unfairly discriminatory. Workers' compensation is the notable exception, requiring a file-and-use process under 215 ILCS 5/456.
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