A.I. 2 (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

Royal & Sunalliance Insurance Company of Canada (the Applicant)

FOR APPROVAL OF A REVISED RATING PROGRAM

FOR ITS PRIVATE PASSENGER CLASS OF BUSINESS

 

 

 

WHEREAS, by application received February 1, 2001, Royal & Sunalliance Insurance Company of Canada 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 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 the Applicant 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 April 13, 2001 the Board  received the report of its Actuarial Consultants with respect to the filing of Royal & Sunalliance Insurance Company of Canada,  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.

 

IT IS THEREFORE ORDERED THAT:

 

1.         Board Order No.  A.I. 65 (1998-99) be and it is hereby rescinded.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

$ 823.22

$ 425.28

$ 315.68

Collision

 229.19

251.80

 256.77

Comprehensive

 144.23

 114.07

 137.46

Specified Perils

56.61

30.90

29.16

Accident Benefits

88.43

88.43

88.43

Uninsured Motorist

22.73

22.73

22.73

All Perils

337.43

337.42

359.93

 

            and differentials as submitted with the 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, Collision portion of All Perils,  Accident Benefits & Uninsured Motorist

 

ii.

 

Long-term policy holder

 

5%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, All Perils, Accident Benefits, & Uninsured Motorist

 

iii.

 

Multi-line

 

5%

 

Third Party Liability, only

 

iv.

 

Claims-free

 

5%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, All Perils, Accident Benefits & Uninsured Motorist

 

v.

 

Experienced Driver

 

10%

 

Third Party Liability, Collision, Comprehensive, Specified Perils, All Perils, Accident Benefits, Uninsured Motorist

 

vi.

 

Low-Mileage

 

12%

 

Third Party Liability, Collision, Comprehensive, & Specified Perils

 

vii.

 

Deluxe plan

 

12%

 

Third Party Liability, Collision, Comprehensive, and Specified Perils

 

4.         The rates established by way of this Order are to be implemented on June 1, 2001 for new business, and no later than August 1, 2001 for renewals.

 

 

Dated at St. John's, Newfoundland, this 1st day of  May, 2001.

 

 

 

                                                                 

Robert Noseworthy

Chairperson & Chief Executive Officer

 

 

 

 

                                                              

Darlene Whalen, P.Eng.

Vice-Chairperson

 

 

                                                           

G. Cheryl Blundon,

Board Secretary

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