P&CPennsylvaniamedium
Under the filed-rate doctrine as applied in Pennsylvania, what is the general consequence for an insured who is charged the rate on file with the PID?
The filed rate is treated as the legal rate and cannot be collaterally attacked as excessive in a private action
BThe insured may sue for restitution of any portion deemed excessive after the fact
CThe insurer must rebate any difference between the filed rate and a competitor's lower rate for the same coverage, because the filed-rate doctrine requires matching the lowest market price available
DThe PCRB must approve every premium individually
Why this is the answer
Pennsylvania courts follow the filed-rate doctrine: once a rate is properly filed with and not disapproved by the Insurance Commissioner under 40 P.S. § 1181 et seq., it is the legal rate. An insured cannot bring a private suit attacking the rate as excessive; the exclusive remedy is administrative challenge through the PID. This preserves regulatory primacy.
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