A.I. 19 (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

Pricewaterhouse Coopers

on behalf of

Colonial Fire & General Insurance Company Limited

TO IMPLEMENT REVISED RATES FOR ITS

PRIVATE PASSENGER CLASS OF BUSINESS.

 

 

 

 

WHEREAS, by application received February 1, 2001, Pricewaterhouse Coopers on behalf of Colonial Fire & General Insurance Company Limited 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 of Colonial Fire & General Insurance Company Limited 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 a copy of the report was provided to Pricewaterhouse Coopers, and

 

WHEREAS Pricewaterhouse Coopers, on May 9, 2001, submitted to Milliman & Robertson, Inc. revisions to the original filing, and

 

WHEREAS, on May 10, 2001, the Board received a further report from its actuaries expressing their opinion of the filing following the revisions made, and

 

WHEREAS the revised report indicates that the proposed rates are now above the indicated rate changes and are reasonably supported by the actuarial analysis, and

 

WHEREAS Colonial Fire & General Insurance Company Limited has proposed a differential for its $2,000,000 liability limit in excess of the +15% without providing justification, and

 

WHEREAS the Board, after due examination and analysis of the proposed rating program and after consideration of the Actuarial Consultants’ revised report on the filing and advice of staff, finds that it meets the filing requirements established for non-Benchmark rates and should be approved, and

 

 


IT IS THEREFORE ORDERED THAT:

 

1.                  Order No. A.I. 32 (1998-99) be and it is hereby rescinded.

 

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

 

Territory

1

       2

         3

Third Party

$ 683.00

$ 381.00

$ 282.00

Collision

198.00

237.00

239.00

Comprehensive

96.00

79.00

93.00

All Perils

273.00

299.00

312.00

Specified Perils

42.00

22.00

20.00

Accident Benefits

77.00

70.00

70.00

Uninsured Motorist

22.00

11.00

8.00

 

 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,

 

ii.

age

5%

 

third party liability, collision,

 

 

4.         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.

 

 


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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