Board Orders Issued Under The Automobile Insurance Act 2006

ORDERS ISSUED BY THE BOARD DURING 2006

UNDER

THE AUTOMOBILE INSURANCE ACT

CHAPTER - 22, 1990

Security National Insurance Company A.I. 1 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The Applicant’s March 22, 2006 rate proposals are approved.

2. The Applicant shall file with the Board revised rate manual pages and rate tables consistent with the March 22, 2006 proposal setting out the dates on which the revised rates are effective.

3. The proposed discount program is approved.

4. The proposed Class of Use definitions are accepted for use.

5. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

Primmum Insurance Company A.I. 2 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The Applicant’s March 22, 2006 rate proposals are approved.

2. The Applicant shall file with the Board revised rate manual pages and rate tables consistent with the March 22, 2006 proposal setting out the dates on which the revised rates are effective.

3. The proposed discount program is approved.

4. The proposed Class of Use definitions are accepted for use.

5. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

Royal & SunAlliance Insurance Company A.I. 3 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, a Premium to Surplus Ratio of 2.25 to 1, the assumptions of MOW with respect to Loss Trend, Effects of Reform and Credibility Standard/Procedure.

3. The Applicant shall submit for the approval of the Board a revised rate proposal, setting out the effective dates, which for each coverage shall be no more than the indications filed with the Board.

4. The proposed Class of Use definitions are accepted for use.

5. The proposed discount program is approved.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

TD Home and Auto Insurance Company A.I. 4 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The Applicant’s March 22, 2006 rate proposals are approved.

2. The Applicant shall file with the Board revised rate manual pages and rate tables consistent with the March 22, 2006 proposal setting out the dates on which the revised rates are effective.

3. The proposed discount program is approved.

4. The proposed Class of Use definitions are accepted for use

5. The Applicant shall pay all the expenses of the Board arising from this application

Date Issued:

March 30, 2006

S & Y Insurance Company A.I. 5 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, an ROI of 3.7%, a Premium to Surplus Ratio of 2.25 to 1, the alternate assumptions of MOW with respect to Underwriting Profit, Effect of Reforms and Credibility Standard/Procedure and the exclusion from rates of any revenue shortfall arising from the proposed capping program.

3. The Applicant shall submit for approval of the Board a revised rate proposal, setting out the effective dates, which for each coverage shall be no more than the indications filed with the Board.

4. The proposed discount program is approved.

5. The proposed Class of Use definitions are accepted for use.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

Insurance Corporation of Newfoundland A.I. 6 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited

2. The Applicant shall file revised rate indications reflecting the findings of the Board which specifically include an ROE of 10% and the alternate assumptions of MOW with respect to Loss Trend and Credibility Standard/Procedure.

4. The proposed discount program is approved with the exception of the Driving Experience discount, which is prohibited.

5. The proposed Class of Use definitions are accepted for use.

6. The Applicant shall pay all the expenses of the Board arising from this application..

Date Issued:

March 30, 2006

Elite Insurance Company A.I. 7 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%; an ROI of 5.14%; a Premium to Surplus Ratio of 2.25 to 1, the alternate assumptions of MOW with respect to Underwriting Profit, Loss Trend and Credibility Standard/Procedure and the exclusion from rates of any revenue shortfall arising from the proposed capping program.

4. The proposed discount program is approved.

5. The proposed Class of Use definitions are accepted for use.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

Traders General Insurance Company A.I. 8 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, an ROI of 4.89%, a Premium to Surplus Ratio of 2.25 to 1, and the exclusion from rates of any revenue shortfall arising from the proposed capping program.

4. The proposed discount program is approved.

5. The proposed Class of Use definitions are accepted for use.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

Scottish & York Insurance Co. Limited A.I. 9 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, an ROI of 5.4%, a Premium to Surplus Ratio of 2.25 to 1, the assumptions of MOW with respect to Large Loss Adjustment, and the exclusion from rates of any revenue shortfall arising from the proposed capping program.

4. The proposed discount program is approved.

5. The proposed Class of Use definitions are accepted for use.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

The Personal Insurance Company A.I. 10 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, an ROI of 5.4%, a Premium to Surplus Ratio of 2.25 to 1, and the alternate assumptions of MOW with respect to Loss Trend, Effect of Reforms and Credibility Standard/Procedure.

3. The Applicant shall submit for approval of the Board a revised rate proposal, setting out the effective dates, which for each coverage shall be no more than the indications filed with the Board in accordance with this Order.

4. The proposed classification variable and discount program are approved for rate making purposes except that the proposed Group discount and the Leased Vehicle surcharge are prohibited.

5. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

The Canadian Union Insurance Company A.I. 11 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed rates are prohibited.

2. The Applicant shall file with the Board revised rate indications reflecting the findings of the Board which specifically include an ROE of 10%, an ROI of 4.76%, a Premium to Surplus Ratio of 2.25 to 1, and the assumptions of MOW with respect to Loss Trend.

4. The proposed Class of Use definitions are accepted for use.

5. The proposed discount program is approved.

6. The Applicant shall pay all the expenses of the Board arising from this application.

Date Issued:

March 30, 2006

The Canadian Union Insurance Company A.I. 12 (2006)

Application:

For approval to implement resubmitted revised rates for its Private Passenger class of business.

Decision:

1. The revised rate proposal received by the Board on April 11, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 15, 2006 and no later than July 15, 2006.

3. Notwithstanding clause two above, in the case of a base rate decrease or where otherwise prescribed by legislation the rates shall be considered to be effective as set out in the legislation.

Date Issued:

April 17, 2006

Insurance Corporation of Newfoundland A.I. 13 (2006)

Application:

For approval to implement resubmitted revised rates for its Private Passenger class of business.

Decision:

1. The revised rate proposal received by the Board on April 26, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 15, 2006 and no later than July 17, 2006.

3. Notwithstanding Clause 2 above, in cases where a rate decreases as a result of this Order or where otherwise prescribed by legislation, the decreased rate shall be considered to be effective as of August 1, 2005 as set out in legislation.

4. The revised discount program as it relates to the Driving Experience Discount and the Mature Driver Discount as set out in the Company’s revised submission dated April 26, 2006 is approved for use.

Date Issued:

May 2, 2006

The Personal Insurance Company A.I. 14 (2006)

Application:

For approval to implement resubmitted revised rates for its Private Passenger class of business.

Decision:

1. The revised rate proposal received by the Board on April 12, 2006 and amended on April 25, 2006 is approved with base rates as included in order and differential as submitted with the filing.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 5, 2006 and no later than July 31, 2006.

4. The revised surcharge program as it relates to the leased vehicle surcharge as set out in the Company’s revised submission dated April 25, 2006 is approved for use.

Date Issued:

May 4, 2006

Royal & SunAlliance Insurance Company A.I. 15 (2006)

Application:

For approval to implement revised rates for its Private Passenger class of business.

Decision:

1. The revised rate proposal received by the Board on April 20, 2006 and amended on May 3, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 15, 2006 and no later than July 31, 2006.

Date Issued:

May 4, 2006

Royal & SunAlliance Insurance Company A.I. 15 A (2006)

Application:

Advised by the Applicant and the Board has confirmed that by virtue of an inadvertent error the “Base Rates” set out in clause one of Order A.I. 15 (2006) are incorrect; and should be amended to correct the inadvertent error.

Decision:

Clause 1 of Board Order No. A.I. 15 (2006) is amended and the Base Rates in order AI 15A (2006) replace the Base Rates set out in order AI 15 (2006).

Date Issued:

May 12, 2006

Scottish & York Insurance Co. Limited A.I. 16 (2006)

Application:

For rehearing of Order No. A.I. 9 (2006).

Decision:

1. The revised rate proposal received by the Board on May 1, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 17, 2006 and no later than August 1, 2006.

3. Notwithstanding Clause 2 above, in cases where a rate decreases as a result of this Order or where otherwise prescribed by legislation, the rate shall be considered to be effective as of August 1, 2005 as set out in legislation.

Date Issued:

May 9, 2006

Elite Insurance Company A.I. 17 (2006)

Application:

For rehearing of Order No. A.I. 7 (2006).

Decision:

1. The revised rate proposal received by the Board on May 1, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 17, 2006 and no later than August 1, 2006.

Date Issued:

May 9, 2006

Traders Insurance Company A.I. 18 (2006)

Application:

For rehearing of Order No. A.I. 8 (2006).

Decision:

1. The revised rate proposal received by the Board on May 1, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 17, 2006 and no later than August 1, 2006.

Date Issued:

May 9, 2006

S&Y Insurance Company A.I. 19 (2006)

Application:

For rehearing of Order No. A.I. 5 (2006).

Decision:

1. The revised rate proposal received by the Board on May 1, 2006 is approved with base rates as included in order.

2. The base rates for each type of coverage shall be effective for new and renewal business no sooner than May 17, 2006 and no later than August 1, 2006.

Date Issued:

May 9, 2006

Insurance Corporation of Newfoundland A.I. 20 (2006)

Application:

For approval of an optional Accident Forgiveness Endorsement for its Private Passenger class of business.

Decision:

The rate for the optional Accident Forgiveness Endorsement is approved at $20.00 per vehicle.

Date Issued:

May 10, 2006

S & Y Insurance Company A.I. 21 (2006)

Application:

For a rehearing in relation to its application to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed ROE of 12.5% is not accepted.

2. An ROE of 11.74% is accepted as reasonable in the circumstances.

3. The rates approved for the Applicant in Order No. A.I. 19(2006) shall remain unchanged.

4. The Applicant shall pay all the costs and expenses of the Board arising from the Application.

Date Issued:

December 19, 2006

Elite Insurance Company A.I. 22 (2006)

Application:

For a rehearing in relation to its application to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed ROE of 15% is not accepted.

2. An ROE of 11.74% is accepted as reasonable in the circumstances.

3. The rates approved for the Applicant in Order No. A.I. 17(2006) shall remain unchanged.

4. The proposed All Perils premium is not approved.

5. The Applicant shall pay all the costs and expenses of the Board arising from the Application.

Date Issued:

December 19, 2006

Traders General Insurance Company A.I. 23 (2006)

Application:

For a rehearing in relation to its application to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed ROE of 12.5% is not accepted.

2. An ROE of 11.74% is accepted as reasonable in the circumstances.

3. The rates approved for the Applicant in Order No. A.I. 18(2006) shall remain unchanged.

4. The proposed All Perils premium is not approved.

5. The Applicant shall pay all the costs and expenses of the Board arising from the Application.

Date Issued:

December 19, 2006

Scottish and York Insurance Co. Limited A.I. 24 (2006)

Application:

For a rehearing in relation to its application to implement revised rates for its Private Passenger class of business.

Decision:

1. The proposed ROE of 12.5% is not accepted.

2. An ROE of 11.74% is accepted as reasonable in the circumstances.

3. The rates approved for the Applicant in Order No. A.I. 16(2006) shall remain unchanged.

4. The Applicant shall pay all the costs and expenses of the Board arising from the Application.

Date Issued:

December 19, 2006

Any questions, problems or comments concerning this page,
please contact webmaster@pub.nl.ca