Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed. This type of rating law is called .

use-and-file rating law

Explanation:

File-and-use rating laws are insurance rules that allow an insurance company to use new rates before they are approved by the state. File-and-use rating laws allow the insurer to use new rates immediately, with the risk that any rate change will be mitigated if the insurance regulator determines the change is not appropriate.

 Required reserve=$36  million

Explanation:

In a fractional banking system, banks are required to maintain  a proportion of  their total deposit for precautionary reasons by banking authority.

The proportion is known as the required reserve ratio and is always given as a percentage of the total deposit.

The required reserve = required reserve (%) × Total deposit

                                  = 12%× 300 million

                                   =36  million

 Required reserve=$36  million