An insurer in Maryland is going to begin using new rates for the largest corporation in Maryland. Which of the following statements apply to this situation?

• A. The rate change may require filing with the state
• B. Any of the above can be true
• C. The rate change could be approved or disapproved
• D. The rate change would require legislative approval

Answer: (B)

In Maryland, rate changes for insurance are overseen by the state regulator, and most changes must be filed with the Maryland Insurance Administration before they can be used. The regulator then reviews the filing and can approve it, disapprove it, or require modifications. While legislative approval is not the typical path for standard rate changes, there are rare or specific statutory circumstances where legislation could come into play. Because all of these outcomes are possible depending on the line of business and the applicable laws, saying that any of the above can be true best reflects how rate changes are processed in Maryland.