A.I. 23 (2000-2001)

 

 

 

 

 

IN THE MATTER OF THE AUTOMOBILE

INSURANCE ACT, CHAPTER A - 22, R.S.N. 1990

 

        AND

 

IN THE MATTER OF AN APPLICATION BY

Axa Canada on behalf of

the Insurance Corporation of Newfoundland (ICON)

FOR APPROVAL OF A REVISED RATING PROGRAM

FOR ITS PRIVATE PASSENGER CLASS OF BUSINESS.

 

 

 

 

WHEREAS, by application received August 21, 2000 Axa Canada on behalf of the Insurance Corporation of Newfoundland (ICON) applied to the Board for approval to implement a revised rating program for its Private Passenger class of business, and 

 

WHEREAS, upon preliminary review, a number of the proposed or adjusted, proposed base rates were found not to conform with the benchmark rate ranges of acceptable rates, and

 

WHEREAS, the applicant has submitted actuarial analysis in support of the establishment of the rates which did not conform with the benchmark rate ranges of acceptable  rates, and

 

WHEREAS, the Board submitted the filing of the Insurance Corporation of Newfoundland (ICON) to its actuaries for review and analysis and a report on the actuarial analysis submitted in support of the establishment of rates that do not conform with the benchmark rate ranges of acceptable rates, and

 

WHEREAS the filing was based on the 1998 benchmark ranges and differentials,  and

 

WHEREAS subsequent to receiving the filing and prior to its review, the Board adopted new Benchmarks for filings with effective dates of June 1, 2001 for new business and July 1, 2001 for renewals, and

 

WHEREAS the Board directed its Actuary to review the filing based on the 2001 Benchmarks, and

 

WHEREAS, on November 17, 2000, the Board received the report of its Actuarial Consultants with respect to the filing of  the Insurance Corporation of Newfoundland (ICON), which indicated that the proposed rate change was not actuarially supported in relation to the 2001 Benchmarks, and

 

WHEREAS, the Board believes it is appropriate to review the filing under the in-force 1998 Benchmarks, and

 

WHEREAS, the Board deems it appropriate to deal with the current filing and to require Insurance Corporation of Newfoundland (ICON) to submit a subsequent filing utilizing the 2001 Filing Instructions issued on November 6 , 2000, and

 

WHEREAS, after due examination and analysis of the proposed rating program, and after consideration of the Actuarial Consultants' report on the filing, and the advice of Board staff, the Board finds that it should be approved as filed.  

 


IT IS THEREFORE ORDERED THAT:

 

1.                  Order No. A.I. 33 (1998-99) be and it is hereby rescinded.

 

2.                  Approval be and it is hereby granted the Insurance Corporation of Newfoundland (ICON) for the implementation of a revised rating program for its Private Passenger class of business with base rates as follows:

                                                                                                            Territory

 

1

2

3

Third Party

$794

$419

$291

Collision          

203

225

222

Comprehensive

108

87

104

Specified Perils

46

25

23

Accident Benefits

69

69

69

Uninsured Motorist

22

11

8

     

and differentials as submitted with the filing.

 

3.         The following discounts have been approved for use subject to the eligibility criteria set out in the company’s underwriting manual:

 

i.

 

Multi-vehicle

 

12%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits

 

 

ii.

 

Seniors:  Age 40 to 49:-

               Age 50 to 80:-

 

 5%

10%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits

 

 

iii

 

Short-commute

 

 

20.5% for

 3.4%  for

 

 

Third Party Liability

Collision

 

iv.

 

Student, away-from-home

 

50%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits

 

v.

 

Auto/home

 

5%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits

 

vi.

 

Employee

 

10%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits

 

 

4.                  These rates shall be effective  January 1, 2001 for new business, and February 1, 2001 for renewals.

 

5.                  Insurance Corporation of Newfoundland (ICON) shall, no later than February 1, 2001, submit an actuarially-supported private passenger rate filing utilizing the 2001 Filing Instructions.

 

 

Dated at St. John's, Newfoundland, this 20th day of  December, 2000.

 

                                                                                                                                     

David A. Vardy,

Chairperson

                                                                                   

 

                                                                                                                                                 

Darlene Whalen, P. Eng.

Vice-Chairperson

 

 

 

 

                                                           

Cheryl Blundon,

Board Secretary

 

Auto Ins. Orders / Home