GMAT Sentence Correction (SC) | Re: Before 1988, insurance companies in California were free to charge wha

Before 1988, insurance companies in California were free to charge whatever rates the market would bear,needing no approval from regulators before raising rates.

A.needing no approval from regulators beforeraising
Correct
B.and it needed no approval by regulators before raising
- Use of AND is incorrect since such use means that "Approval from regulator for increase in rate" and "insurance companies can charge any rate" are two different act, an idea contrary to original intent. Use of Singular pronoun "IT" for plural antecedent "COMPANIES" is incorrect. Hence Incorrect.