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Under the Pennsylvania Casualty and Surety Rate Regulatory Act, rates must NOT be which of the following?

Q: Under the Pennsylvania Casualty and Surety Rate Regulatory Act, rates must NOT be which of the following?

Excessive, inadequate, or unfairly discriminatory — The Casualty and Surety Rate Regulatory Act at 40 P.S. § 1183 sets Pennsylvania's three-prong rate adequacy standard: rates may not be excessive, inadequate, or unfairly discriminatory. This is the universal benchmark the Insurance Commissioner applies when reviewing casualty and surety rate filings. Rates are not required to be identical across insurers, are not filed with the NAIC, and are not personally approved by the Governor; the PID administers the statute.

AFiled with the National Association of Insurance Commissioners

BApproved by the Governor before use

CIdentical for every insurer writing the line

Excessive, inadequate, or unfairly discriminatory

Why this is the answer

The Casualty and Surety Rate Regulatory Act at 40 P.S. § 1183 sets Pennsylvania's three-prong rate adequacy standard: rates may not be excessive, inadequate, or unfairly discriminatory. This is the universal benchmark the Insurance Commissioner applies when reviewing casualty and surety rate filings. Rates are not required to be identical across insurers, are not filed with the NAIC, and are not personally approved by the Governor; the PID administers the statute.

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