What is the purpose of insurance rate regulation?

The purpose of insurance rate regulation in Arizona is to ensure that insurance companies have the ability to cover policyholder claims adequately and remain financially stable. Insurance rate regulation also helps to protect consumers from unfair pricing practices from insurers. Insurance providers in Arizona must receive approval from the Arizona Department of Insurance before changing their rates. This allows the state government to ensure that rates remain fair and stay within the proper industry standards for the policyholder’s protection. Insurance rates must be actuarially sound, meaning that they must match the expected cost of the risks insured. Insurance companies are also required to follow certain regulations when it comes to filing to increase their rates. Insurance companies must submit a rate filing and the supporting data to the Department of Insurance. This allows the Department of Insurance to review the data and determine whether or not to approve the proposed rate increase. In addition, the Department of Insurance also monitors existing rates to ensure that they remain fair. The goal of these regulations is to protect the consumer and make sure that insurance companies have adequate funds to cover policyholder claims. These regulations help to ensure that consumers get the best coverage and rates possible.

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What is the purpose of insurance rate regulation?

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