A.I.  36 (2001-2002)

 

 

 

 

IN THE MATTER OF THE AUTOMOBILE

INSURANCE ACT, CHAPTER A - 22,

R.S.N. 1990

 

        AND

 

IN THE MATTER OF A REVIEW OF

THE AUTOMOBILE INSURANCE RATES OF

Wellington Insurance Company

 

 

WHEREAS  the Board, on November 6, 2000, issued its annual automobile insurance rate filing instructions to automobile insurers writing business in the Province, and

 

WHEREAS, the instructions advised insurers of a requirement to file rates within the Board’s 2001 Benchmarks or to justify those rates which did not conform with the Benchmarks, and

 

WHEREAS the instructions also advised insurers that a failure by the insurer to provide the information required by the Board could result in the Board setting rates for the insurer within the 2001 Benchmark ranges, and

 


                        WHEREAS the instructions advised insurers of the requirement to submit non-Benchmark rate filings no later than February 1, 2001 or, in the alternative, Benchmark rate filings no later than April 1, 2001, and

 

                        WHEREAS, as of May 15, 2001, Wellington Insurance Company has not made a filing in accordance with the 2001 Filing Instructions, and

 

                        WHEREAS Section 53(2) of the Act states:

 

“Where the rates filed as required by Section 49, or the application for a change in rates under Section 51, have been approved or considered to have been approved under Subsection (1), the Board may investigate the rates charged by the insurer and, notwithstanding approval of those rates or that they are considered to have been approved, may order the insurer to make the changes the Board considers appropriate,”

 

and

 

                        WHEREAS Section 49(1) of the Act states:

 

“An insurer shall annually file with the Board the rates it proposes to charge for automobile insurance”.

 

 

 

 


IT IS THEREFORE ORDERED THAT:

 

            1.         Order No. A.I. 66 (1998-99) be and it is hereby rescinded.

 

2.                  The following rates be implemented by Wellington Insurance Company for the Private Passenger and/or Commercial  automobile insurance written in the Province of Newfoundland and Labrador on, and after, June 1, 2001 for new business and no later than August 1, 2001 for renewals:

For companies utilizing MSRP Rate Groups:

 

 

Private Passenger

Commercial

Territory

1

       2

         3

All

Third Party Liability

$ 770

$ 427

$ 327

$ 590

Accident Benefits

82

82

82

26

Uninsured Motorist

31

17

13

9

Collision (MSRP)

193

235

253

199

Comprehensive (MSRP)

118

94

120

128

All Perils  (MSRP)

285

309

347

286

Specified Perils (MSRP)

39

21

20

58

 

 


For companied utilizing the CLEAR Private Passenger and MSRP Commercial Rate Groups:

 

Private Passenger

Commercial

Territory

1

       2

         3

All

Third Party Liability

$ 770

$ 427

$ 327

$ 590

Accident Benefits

82

82

82

26

Uninsured Motorist

31

17

13

9

Collision (CLEAR)

203

248

267

199

Comprehensive (CLEAR)

123

98

110

128

All Perils  (CLEAR)

300

325

353

286

Specified Perils (CLEAR)

35

19

18

58

 

 

3.                  Wellington Insurance Company is to file with the Board, no later than June 15, 2001, revised rate pages reflecting the changes herein ordered and developed utilizing the differentials as established by the 2001 Benchmarks and appended to this order.

 

4.                  The rates ordered herein may not be altered or varied by the application of any surcharges or discounts.

 

5.                  Rates established by the order are to be implemented June 1, 2001 for new business and no later than August 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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