P&CMAeasy
Under Massachusetts rate regulation, a P&C rate is unlawful if it is which of the following?
Excessive, inadequate, or unfairly discriminatory
BIdentical for every Massachusetts insurer writing the line, regardless of loss exposure differences
CFiled in fewer than three other states
DPersonally approved by the Governor
Why this is the answer
M.G.L. c. 174A §5 (fire and allied lines), c. 175A §5 (casualty lines) and the parallel auto provisions in c. 175E §4 codify the universal three-prong rate standard for MA P&C lines: a rate is unlawful if it is excessive, inadequate, or unfairly discriminatory. The Commissioner of Insurance administers the standard. Rates need not be identical across insurers, multi-state filing is not the test, and the Governor does not personally approve rate filings.
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