What authority does the insurance department NOT have?

The insurance department does not have the authority to create policy rates. Instead, it regulates the insurance market, ensuring fairness and compliance with state laws regarding pricing procedures. The department plays a crucial role in reviewing and approving rates proposed by insurance companies.

By approving or rejecting policy rates, the department ensures that the rates are not discriminatory and align with the principle of providing adequate coverage while maintaining insurer solvency. Likewise, they can revise rates to ensure they stay compliant with regulations and serve the public interest. However, the actual creation of policy rates is the responsibility of the insurance companies themselves, who must base their proposals on various factors including risk assessments and operational costs. Thus, creating policy rates is outside the purview of the insurance department's regulatory functions.