Which entity must approve a change in the premium structure for life insurance policies?

The correct answer indicates that the state insurance department must approve a change in the premium structure for life insurance policies. This is because changes to premium rates can significantly impact policyholders and their coverage. To ensure that these changes are fair, justified, and in the best interests of consumers, state insurance departments regulate the insurance industry and have the authority to review and approve any adjustments to premium structures.

Insurers must submit their proposed changes, along with supporting data, to the state insurance department for review. This regulatory process helps maintain oversight in the industry, ensuring that insurance companies comply with state laws and protect the interests of policyholders. It also serves as a mechanism to prevent unreasonable rate increases that could adversely affect consumers.

In contrast, while the insured and policyholder have a stake in the policy, they do not have the authority to approve premium structure changes. The insurer proposes these changes, but they cannot implement them without the necessary approval from the appropriate regulatory body. This ensures a balance of power between the insurer and the regulatory framework designed to protect consumers.