Which term describes Georgia's approach to insurance licensing?

Georgia's approach to insurance licensing is characterized as a "file and use state." This means that insurance companies operating in Georgia are required to file their rates and forms with the state insurance department, but they can begin using those rates immediately after filing. This framework allows for a degree of flexibility and expediency, as insurers do not need to wait for formal approval before implementing their rates.

The "file and use" system encourages competition in the insurance market, as insurers can quickly adjust their offerings in response to market conditions without facing significant delays from the regulatory process. This method is often seen as beneficial for consumers, as it can lead to more competitive pricing and a wider range of insurance products available in the market.

In contrast, other terms listed describe different regulatory frameworks. An "open state" would imply fewer restrictions on who can enter the market, while a "rate filing state" typically requires pre-approval of rates before they can be used. A "no rate approval state" suggests that companies can set rates without any regulatory oversight, which differs from Georgia's approach where a filing is still necessary, albeit not requiring prior approval.