The Commercial Insurance Deregulation Act directly affects which policies?

• A. homeowners policies
• B. auto insurance for commercial fleets
• C. commercial liability policies under $5,000
• D. commercial fire policies with annual premiums of more than $10,000

Answer: (D)

Deregulation here means reducing regulatory oversight for certain commercial lines. The Commercial Insurance Deregulation Act focuses on high-value commercial fire risks, allowing insurers to handle rates and policy forms for those policies with less prior-approval constraint. Since the threshold given is an annual premium of ten thousand dollars, this act directly affects commercial fire policies whose annual premiums exceed that amount. Other lines—such as homeowners (personal lines), auto fleets, or smaller commercial liability policies below the threshold—aren’t covered by this deregulation. The takeaway is that only the high-premium commercial fire coverage falls under this act’s relaxed oversight.