Hawaii Insurance License Practice Exam

How many days before the effective date must new rates be filed with the insurance commissioner?

1. 15 days

2. 30 days

3. 45 days

4. 60 days

The correct answer is: 30 days

The requirement to file new rates with the insurance commissioner 30 days before the effective date is in line with regulatory practices that ensure transparency and adequate notice in the insurance industry. This timeframe allows the commissioner to review the proposed rates and assess whether they comply with the relevant laws and regulations designed to protect consumers and maintain market stability. Filing the rates 30 days in advance provides insurance companies the opportunity to notify their policyholders of any changes, allowing for sufficient time to address any concerns or questions. This period also contributes to maintaining fairness in the marketplace, ensuring that insurers cannot implement new rates immediately without regulatory oversight. Understanding this timeframe is crucial for insurance professionals, as compliance with filing deadlines helps avoid potential penalties and enhances the operational integrity of the insurance company. Having knowledge of these regulations equips agents and brokers to better inform their clients about changes in rates that may affect their insurance premiums.