What happens if a policy form is not approved or disapproved within the review period?

When a policy form is submitted for approval and is not approved or disapproved within the designated review period, it is automatically considered approved. This provision is in place to prevent indefinite delays in the approval process, thereby ensuring that insurers can continue to operate effectively without unnecessary hold-ups in getting their products to market. This automatic approval serves as a form of regulatory relief for insurers, allowing them to proceed with offering the policy form while still adhering to the necessary legal frameworks.

This mechanism helps to streamline the regulatory process, as it provides clarity and certainty to insurers. The assumption is that the absence of a decision within the review window implies that the form does not violate any regulations or statutory requirements, allowing the insurer to utilize that policy form promptly.