Glossary

File-and-use

A rate-regulation system in which insurers can start charging new rates once they are filed with the state, without waiting for advance approval.

Also called: file and use, file-and-use rating law

File-and-use is one of the main ways states regulate insurance rates. An insurer files its proposed rates, rating rules and supporting data with the state state department of insurance and can start charging them on or after the filing date, or after a short waiting period in some states, without the regulator's advance approval. The regulator can still review the filing afterward and order changes, or refunds, if the rates prove excessive, inadequate or unfairly discriminatory.

It sits on a spectrum. At one end, prior approval states, such as California under proposition 103, require the regulator to approve rates before they take effect. Use-and-file lets insurers file after they begin using new rates, flex rating allows changes within a band without approval, and a few states rely mostly on competition. Texas, for example, does not approve home and auto rates in advance but can order refunds when it finds rates too high.

For drivers, the system affects how fast rates can change. File-and-use states can see increases take effect soon after claim costs jump, while prior-approval states can lag, which sometimes leads insurers to limit new business. Either way, rate filings are generally public, and many states let you search them online.

Last reviewed October 4, 2026

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Related terms

Prior approval A rate regulation system in which insurers must get the state regulator's approval before using new rates or rating rules. Rate filing The package of proposed rates, rating rules and supporting data an insurer submits to a state regulator when it wants to change prices. State department of insurance The state agency that licenses insurers and agents, reviews rates and policy forms, monitors solvency and handles consumer complaints. Proposition 103 The 1988 California ballot measure that requires approval of auto rates before use, mandates a Good Driver Discount and made the commissioner elected. Insurance rate The price per unit of coverage an insurer files with the state, which rating factors then adjust to produce your individual premium.

Related guides

How car insurance rate approval works How states review car insurance rates: prior approval, file-and-use, use-and-file and flex rating, what regulators check, and how to follow a filing yourself. Loss ratios and rate filings: how insurers justify an increase How insurers use loss ratios, expense ratios and trend data to justify a rate change, what regulators check, and how to read a filing yourself.