Which of the following describes the components of rate filing?

The correct choice describes the components of rate filing accurately by incorporating critical elements necessary for determining the overall cost structure of insurance rates. In the context of rate filing, the calculations typically involve the cost of claims, which is a fundamental component as it reflects the money that an insurer expects to pay out for claims. Administrative expenses are also added to account for the operational costs associated with managing the insurance policies, including marketing, underwriting, and customer service.

Subtracting interest is essential as it considers the income generated from the insurer's investments, which can offset some of the costs incurred. This comprehensive approach ensures that the rate accurately reflects the total cost to the insurer while accounting for any income from claims reserves or premiums. Consequently, this method provides a more realistic basis for setting rates that ensures the financial stability of the insurance company.

Other options do not integrate all necessary components or misrepresent the financial dynamics involved in rate filing, thereby failing to provide an accurate assessment of insurance pricing.