What is the purpose of filing rates and forms with the Texas Department of Insurance?

• A. To maximize profits for the insurer
• B. To ensure compliance with statutes and to prevent unlawful or discriminatory terms; forms are reviewed for compliance
• C. To speed up claim handling
• D. To advertise new products to the public

Answer: (B)

Filing rates and forms with the Texas Department of Insurance is about regulatory oversight to protect consumers. The department reviews and approves or requires changes to rates and policy forms to ensure they comply with Texas statutes and do not include unlawful or discriminatory terms. By examining rates for fairness and forms for clear, compliant language, the department helps prevent unfair pricing and misleading or prohibited policy provisions. This supervision supports consumer protection and market stability, rather than maximizing profits, speeding claim handling, or advertising products.