How are rates set under a RF

edited February 14 in Cook.Personal

There are battle cards that explain that Cook doesn't go into detail about how rates are set for a RF, but another battle card says there is more freedom to set rates under a RF than an ARP (which would decrease the size of the residual market).

Do I need to know anything about how these rates are set? I'm confused

Comments

  • This explanation in the wiki should be sufficient:

    Cook doesn't really explain how RF rates are set but RFs are essentially intended to be non-profit enterprises to fulfill the social good of universal availability of auto insurance (and rules can vary greatly from state to state anyway).

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