When an insurer submits proposed rates to regulatory authorities, this process is known as what?

The process of submitting proposed rates to regulatory authorities is known as rate filing. This is an essential step for insurance companies, as it allows them to seek approval or disapproval of their proposed rates before they can be implemented. Regulatory authorities review these filings to ensure that the rates adhere to legal requirements, are not discriminatory, and are sufficient to cover the expected costs of claims and operating expenses.

Rate filing is crucial for maintaining market stability and protecting consumers, as it provides a level of oversight in the industry. It is not merely about adjusting rates or negotiating terms; instead, it is a formal procedure that ensures compliance with regulations governing insurance practices. Understanding this process is vital for professionals in the insurance field, as it impacts how rates are set and adjusted over time based on various market and regulatory conditions.