P&CMAmedium
Under MA rate regulation, how may a P&C insurer use rate-related materials prepared by an advisory organization such as ISO?
AThe insurer may adopt advisory loss-cost filings as its own final rates without independently filing any loss-cost multiplier with the DOI
BOnly if the Governor specifically authorizes each advisory filing
CAdvisory filings automatically become the insurer's rate without any further filing
The insurer may reference advisory loss-cost filings but must file its own loss-cost multiplier and final rates with DOI
Why this is the answer
MA permits advisory organizations such as ISO to file prospective loss costs and other reference materials with DOI. Each insurer may reference those filings but must independently file its own loss-cost multiplier (LCM) and resulting final rates. Advisory filings are not prohibited, do not automatically become the insurer's rate, and do not require gubernatorial action.
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