State Regulation of Rates [Discussion]

The purpose of state regulation of rates is primarily protection of the policyholder and incidentally of the insurance carrier through applying the criteria of adequacy, reasonableness, and non-discrimination. The various states have shown particular concern in connection with rates for workmen's compensation, accident and health, and automobile insurance. In most states workmen's compensation rates must be approved and accident and health rates must be filed, and in several states automobile rates must be either filed or approved. The great majority of the compensation states permitting private insurance of the compensation hazard have laws ranging from requirement of mere filing of rates to provisions for filing and approval. In Massachusetts, rates for automobile bodily injury liability insurance, and in Texas, workmen's compensation rates, are made by the state. In New York and in Vermont there are rating laws which undertake to apply regulation to all rates with certain defined exceptions.