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Which best describes Michigan's general rate regulatory approach for most property and casualty lines?

Q: Which best describes Michigan's general rate regulatory approach for most property and casualty lines?

Open-competition, file-and-use system — For most property and casualty lines, Michigan does not require prior approval of rates. Insurers file rates with DIFS and may begin using them, subject to the Director's continuing authority to disapprove a rate that is excessive, inadequate, or unfairly discriminatory. The legislature does not set rates, and filings are still required — a 'no filing' approach is not used.

APrior approval by DIFS before any rate may be used

BState-made rates set annually by the legislature

CNo filing required of any kind

Open-competition, file-and-use system

Why this is the answer

For most property and casualty lines, Michigan does not require prior approval of rates. Insurers file rates with DIFS and may begin using them, subject to the Director's continuing authority to disapprove a rate that is excessive, inadequate, or unfairly discriminatory. The legislature does not set rates, and filings are still required — a 'no filing' approach is not used.

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