Glossary

File and use

A rate-regulation system in which an insurer files new rates with the regulator and may start charging them right away or after a short waiting period.

Also called: file-and-use, file and use rate regulation, file & use, flex rating

In a file-and-use state, an insurer submits its rates to the department of insurance and can begin using them without waiting for formal approval, either immediately or after a short waiting period set by law. The regulator keeps the power to review the filing and to disapprove it afterward. If it does, the insurer may have to withdraw the rates and, in some states, refund premium collected under them.

The practical difference from prior approval is timing and burden. Under prior approval the regulator moves first. Under file and use the insurer moves first, and the regulator's review runs alongside, or after, the rate taking effect. A renewal notice announcing an increase can therefore arrive soon after the filing, before the department has finished looking at it.

States do not fit neatly into three boxes. Some use flex rating, where changes within a stated band can take effect on filing and larger changes need approval first. Many states regulate different lines differently. Check your own state's department of insurance rather than assuming. If a rate increase looks excessive, you can still complain to the department, ask for the public rate filing, and shop other carriers. See prior approval vs file-and-use rate laws for a side-by-side comparison and use and file for the third system.

Last reviewed October 10, 2026

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Related terms

Prior approval A rate-regulation system in which an insurer must have the state regulator approve its proposed rates before it may charge them to policyholders. Use and file A rate-regulation system in which an insurer may put new rates into effect first and then submit them to the regulator within a set period afterward. Rate filing The package of proposed prices, rating factors and supporting data that an insurer submits to a state regulator before or when it changes its homeowners rates. Rate increase A rise in the price an insurer charges per unit of coverage, which is only one of several reasons the premium on your renewal notice can go up. Department of insurance The state agency that licenses and supervises insurers and agents, reviews policy forms and rates, and takes consumer insurance complaints. Insurance commissioner The state official who heads the insurance regulator, oversees insurers and agents, reviews rates and forms, and handles consumer complaints.

Related guides

Price optimization and the loyalty penalty in home insurance Pricing by how likely you are to shop, not how risky your house is, has been condemned by regulators in many states. What it is, who says what, how to test it. Prior approval vs file-and-use rate laws Prior-approval states make insurers wait for sign-off before changing homeowners rates; file-and-use states do not. How each works and the trade-offs. How insurers file rate increases with regulators A rate filing is an insurer's request to change its prices. What goes into one, how regulators review it, how to read an average increase and where to find it.

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Oklahoma Oklahoma home insurance: State Farm writes nearly a third of the market, hail drives some of the nation's highest premiums, and there is no FAIR plan.