Who is responsible for paying the actuary hired to review premium rates submitted to the Connecticut Insurance Department?

The correct choice indicates that Binders Keepers, Inc. is responsible for paying the actuary hired to review premium rates submitted to the Connecticut Insurance Department. This situation typically arises when an organization, such as a management company or insurance advisory firm, employs actuaries to analyze and assess the adequacy and appropriateness of premium rates proposed by insurance companies.

In this context, Binders Keepers, Inc. would be acting as an intermediary or facilitator in the review process and, as a result, would bear the financial responsibility for the actuary's fees. This arrangement allows the Connecticut Insurance Department to focus on regulatory oversight while relying on external expertise to evaluate complex actuarial matters.

Understanding that the cost of hiring actuaries falls to the entity managing or overseeing the rate review process clarifies the dynamics of collaboration between private firms and government regulatory agencies in the state of Connecticut's insurance landscape.