Who establishes the insurance rates for a company?

The establishment of insurance rates by individual companies based on past experience is a fundamental practice in the insurance industry. Insurers utilize historical data and statistical analysis to assess risk and determine premiums. This involves evaluating various factors such as the type of coverage, the insured's claim history, demographics, and broader market trends.

Using past experience ensures that the rates are reflective of the actual risks they are underwriting, allowing for a balance between competitiveness in the market and the financial stability of the company. Companies often rely on actuarial data to make informed decisions about the rates they charge, ensuring they can cover potential claims while remaining profitable.

The other entities mentioned, such as state legislatures and the National Association of Insurance Commissioners, play important roles in the regulatory framework and standards of insurance, but they do not directly set individual company rates. Insurance brokers serve a different function, acting as intermediaries between consumers and insurance companies, and are not involved in the rate-setting process. Thus, the correct answer highlights the role of individual companies in determining their own insurance rates based on their experience and data analysis.