A.I. 18 (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
Scottish & York Insurance Company Ltd.
FOR APPROVAL OF A REVISED RATING PROGRAM
FOR ITS PRIVATE PASSENGER CLASS OF BUSINESS
WHEREAS by
application received February 1, 2001, Scottish & York Insurance Company
Ltd. applied to the Board for approval to implement a revised rating program
for its Private Passenger class of business, and
WHEREAS upon preliminary
review by Board staff, 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 of its Actuarial Consultants
with respect to the filing of Scottish & York Insurance Company Ltd., and
WHEREAS the
Actuarial Consultants' report concluded that the proposed rates which are
outside the Benchmarks, with the exception of specified perils, territory 2,
are supported by the actuarial analysis submitted by the company, 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, finds
that it should be approved as filed, with the establishment of the rate for
specified perils, territory 2, at the upper limit of the benchmark range.
IT IS THEREFORE ORDERED
THAT:
1. Board Order No. A.I. 9 (1999-2000) be and is hereby
rescinded.
2. The following base rates
are hereby approved for use by the company:
|
Private
Passenger |
|||
|
Territory |
1 |
2 |
3 |
|
Third Party |
$
897.51 |
$
549.61 |
$
382.53 |
|
Collision |
207.65 |
247.85 |
245.07 |
|
Comprehensive |
134.33 |
107.15 |
128.29 |
|
Specified Perils |
45.44 |
24.91 |
22.39 |
|
Accident Benefits |
51.00 |
51.00 |
51.00 |
|
Uninsured Motorist |
19.00 |
10.00 |
8.00 |
|
All Perils |
294.29 |
316.96 |
327.81 |
and differentials as submitted with this
filing.
3. The following discounts are approved for use
subject to the eligibility criteria set out in the company’s underwriting
manual:
|
i. |
multi vehicle |
10% |
third party liability, collision, accident
benefits, & uninsured auto |
|
ii. |
mature driver |
10% |
third party liability, collision,
comprehensive, accident benefits, specified perils, & uninsured auto |
|
iii. |
package |
10% |
third party liability, collision,
comprehensive, accident benefits, & specified perils |
|
iv. |
short commute |
10%
- Class 02 |
third party liability, accident benefits,
& uninsured auto |
|
v. |
student |
40% |
third party liability & collision |
|
vi. |
preferred driver |
10%
|
third party liability, collision,
comprehensive, specified perils, all perils, uninsured motorist, &
accident benefits |
4. These rates shall be effective from June 1, 2001 for new business, and no later than July 1, 2001 for renewals.
5. In its next filing,
Scottish & York Insurance Company Ltd. will reflect the suggestions of the
Board’s Actuarial Consultants expressed in their May 4, 2001 report on this
filing.
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