When an insurer in Maryland begins using new rates for the largest corporation, which statements could apply?

• A. The new rates may require filing with the state regulator
• B. The new rates could be approved and used immediately
• C. The new rates may be subject to regulatory review
• D. Any of the above can be true

Answer: (D)

Rate changes for commercial lines in Maryland go through the state regulator, who reviews and approves or conditions those changes. When a new set of rates is introduced for a large corporate account, the insurer must file with the Maryland Insurance Administration and the regulator will determine whether the rates are justified and compliant. Depending on the filing arrangement in place for that line, several outcomes are possible: the rates may require formal approval before they can be used; or the insurer might be allowed to implement them immediately after filing under a use-and-file or file-and-use approach, with the regulator reviewing the filing subsequently; or the regulator may review and act as part of the post-implementation process. Because the Maryland process can accommodate different pathways for rate changes, any of these scenarios can occur. Thus, the option that "any of the above can be true" best reflects how rate changes can be handled in practice.