What does the "use and file" rating law entail?

The "use and file" rating law allows insurance companies to implement their rates before notifying the state insurance commission. This means that insurers are permitted to use the rates immediately and then are responsible for filing the rate information with the commission shortly thereafter. This system streamlines the process for insurers, providing them with flexibility and speed in adjusting to market conditions without needing prior approval.

This approach contrasts with other regulations that require insurers to obtain approval first or to wait after submitting their rates, making option B the accurate interpretation of the "use and file" process. This framework can encourage competition and promote more responsive pricing strategies in an evolving market. The other options illustrate variations of regulatory approaches but do not correctly define the "use and file" system.