What happens if the commissioner of insurance disapproves a proposed rate?

When the commissioner of insurance disapproves a proposed rate, the correct outcome is that the Bureau may appeal for judicial review. This process allows the insurance company to challenge the commissioner's decision in a court setting. It acknowledges that while the commissioner's disapproval holds significant weight, the affected party has the right to seek a legal review to potentially overturn that decision.

This mechanism serves as a check and balance within the regulatory framework. It essentially ensures that the insurance companies have a legal recourse if they believe that their proposed rates have been unjustly rejected. Therefore, this process fosters accountability and fairness in the regulation of insurance rates.

The options related to the instant voiding of proposed rates or the inability for insurance companies to appeal are incorrect as they do not reflect the procedural rights afforded to insurers under regulatory laws. Additionally, stating that the rates are placed into effect without further review ignores the checks built into the approval process, which is designed to protect market fairness and consumer interests.