Texas General Lines — Property and CasualtyTexas Laws and RegulationsHard
An insurer operating in Texas decides to increase its rates for personal auto insurance policies. According to Texas regulations, how long before the proposed effective date must the insurer file the new rates with the Commissioner of Insurance?
- A60 days
- B30 days
- C45 days
- D15 days
Show answer & explanationAnswer & explanation
Correct answer: A. 60 days
In Texas, an insurer must file proposed rate changes with the Commissioner of Insurance at least 60 days before the proposed effective date. This allows time for review and potential disapproval.
Why the other options are wrong
- B. 30 days is common for some filings but not for rate changes in Texas.
- C. 45 days is not the specified period for rate filings.
- D. 15 days is insufficient for rate filing review.
Texas Rate Filing Requirement
The specified period before a proposed effective date that an insurer must submit new or revised rates to the Texas Commissioner of Insurance for review.
- Applies to most property and casualty rates.
- Allows the Commissioner to review for fairness and adequacy.
- Ensures consumer protection.
Memory trick: Sixty days for rates, or your new prices won't circulate.