A.I. 20 (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

Lombard Canada on behalf of

Lombard Insurance Company,

Lombard General Insurance Company of Canada, and

Tokio Marine & Fire Insurance Company

TO IMPLEMENT REVISED RATES FOR ITS

PRIVATE PASSENGER CLASS OF BUSINESS.

 

 

 

 

WHEREAS, by application received January 31, 2001, Lombard Canada on behalf of Lombard Insurance Company, Lombard General Insurance Company of Canada and Tokio Marine & Fire Insurance Company 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, the proposed rate changes are lower than the indicated rate changes, with the exception of comprehensive, 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’s actuaries have advised the Board of the rates outside the Benchmarks supported by the filing, and

 

WHEREAS a copy of the report and supported rates was provided to Lombard Canada, and

 

WHEREAS, on May 11, 2001, Lombard Canada amended its January 31, 2001 filing to reflect the findings of the Board’s actuaries, and

 

WHEREAS the Board, after due examination and analysis of the proposed rating program, as amended, and after consideration of the Actuarial Consultants’ 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. 57 (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

$907.00

$ 454.00

$ 370.00

Collision

237.00

223.00

288.00

Comprehensive

108.00

82.00

104.00

All Perils

323.00

288.00

371.00

Specified Perils

33.00

25.00

32.00

Accident Benefits

84.00

84.00

84.00

Uninsured Motorist

18.00

14.00

13.00

 

 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.

student, away-from-home

 

50%

class 05 or 06,

third party liability & collision,

 

ii.

multi vehicle

15%

 

common coverages of third party liability, collision, collision portion of all perils, accident benefits

 

iii.

mature driver:

         age 50 – 59 –

 

         age 60 – 70 -

 

10%

 

15%

 

all coverages

 

iv.

claims free

5%

all coverages

 

v.

loyalty

3%

 

 

5%

 

 

10%

 

minimum of 2 years insured with the company

 

minimum of 5 years insured with the company

 

10 or more years insured with the company

 

vi.

personal choice

10%

all coverages

 

vii.

preferred risk

5%

all coverages

 

 

4.         The 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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