Insurance Companies’ Regulation and Antitrust Law

Surety Association of America determine bonds’ rate. Fire insurance company offered fire insurance rates which actually decided and regulated by regional, state-wide inspection rating bureaus. Rating bureau company determines the rate by first gathering statistics then formulate rates to be implemented in an approved policy forms. This organization is not only responsible for setting insurance rate, but also involved in standardization of insurance policies. This is one of main function of rating bureaus which make it easier for insurance companies to measure rate and contracts with market condition. (more…)