What type of premium must be charged by an insurer?

In the context of insurance regulation in Maryland, the amount of premium that an insurer charges must comply with state laws and regulations. This requirement is in place to ensure that premiums are fair, reasonable, and not discriminatory against consumers. Insurers are required to file their rates and forms with the appropriate state authorities and receive approval for those rates before they can be implemented. By adhering to these regulations, insurers help maintain a level of market integrity and consumer protection.

While an insurer does have the freedom to determine its premium rates, this determination cannot be arbitrary or excessive; it must reflect the guidelines outlined in state law. For example, rates must be based on sound actuarial principles and not violate any unfair discrimination laws, which require that similar risks receive similar premiums. This regulatory oversight helps to ensure that consumers are charged premiums that are justifiable and that the insurance market operates fairly.