A.I. 16 (2001-2002)

 

 

 

 

 

 

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

Insurance Corporation of Newfoundland

TO IMPLEMENT REVISED RATES FOR ITS

PRIVATE PASSENGER CLASS OF BUSINESS.

 

 

 

 

WHEREAS, by application received February 1, 2001, Axa Canada on behalf of Insurance Corporation of Newfoundland applied to the Board for approval to implement a revised rating program for its Private Passenger class of business, and 

 

WHEREAS upon preliminary review, it was determined that a number of the proposed or adjusted proposed base rates did not conform with the 2001 benchmark rate ranges of acceptable rates, and


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

 

WHEREAS the Board has submitted the filing 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, on May 7, 2001, the Board received the report from its actuaries with respect to the filing, and

 

WHEREAS, the report concludes for those rates outside the benchmarks that the proposed rate changes are lower than the indicated rate changes and that the filing does not support the proposed rate changes, and

 

WHEREAS the requirements set out in the Board’s 2001 Filing Instructions issued November 2000 require companies to justify those rates not conforming with the Benchmarks with reasonable actuarial analysis of the company’s experience in Newfoundland and Labrador, and

 

WHEREAS the Board, after due examination and analysis of the proposed rating program and after consideration of the Actuarial Consultants’ report on the filing and advice of staff, finds that it does not meet the filing requirements established for non-Benchmark rates and should not be approved, and

 

WHEREAS the Board requires all companies to file rates in accordance with the 2001 Benchmark Ranges and Filing Instructions, and

 

WHEREAS the Board has been advised by its Actuarial Consultants of the rates reasonably supported by the filing.

 

 


IT IS THEREFORE ORDERED THAT:

 

            1.         Order No. A.I. 23 (2000-2001) be and it is hereby rescinded.

 

2.                  The non-benchmark rates proposed in the filing by Axa Canada on behalf of Insurance Corporation of Newfoundland are not approved.

 

3.                  The following base rates are hereby approved for use by the company:

 

Territory

1

       2

         3

Third Party

$ 764.00

$ 444.00

$ 309.00

Collision

198.00

244.00

240.00

Comprehensive

103.00

83.00

99.00

Specified Perils

43.00

24.00

22.00

Accident Benefits

69.00

69.00

69.00

Uninsured Motorist

22.00

11.00

8.00

 

 and differentials as submitted with this filing.


4.         The following discounts are 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 – 49 

              age 50 – 80 

5%

10%

third party liability, collision, comprehensive, specified perils and accident benefits

 

iii.

short-commute

21%

 

3.9%

 

8.2%

 

9.5%

 

third party liability, territory 1

 

third party liability, territories 2 and 3

 

collision, territory 1

 

collision, territories 2 and 3

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

 

5.         These rates established by way of this Order are to be implemented on June 1, 2001 for new business and July 1, 2001 for renewals.

 

6.      Axa Canada, on behalf of Insurance Corporation of Newfoundland, shall file with the Board no later than June 22, 2001, revised rate pages developed utilizing the base rates approved in this order and the differentials as submitted with the rate filing received February 1, 2001.

 

 

Dated at St. John's, Newfoundland, this 16th day of May, 2001.

 

 

 

                                                                 

Robert Noseworthy

Chairperson & Chief Executive Officer

 

 

 

 

                                                              

Darlene Whalen, P.Eng.

Vice-Chairperson

 

 

 

 

 

                                                           

Barbara Thistle

Assistant Board Secretary

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