A.I. 60 (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

CGU Insurance Company of Canada

(the Applicant)

FOR APPROVAL OF A REVISED RATING PROGRAM

FOR ITS PRIVATE PASSENGER CLASS OF BUSINESS

 

 

 

WHEREAS, by application received July 27, 2001, CGU 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, a number of the proposed or adjusted proposed base rates were found not to 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, after due examination and analysis of the proposed rating program finds that it should be approved as filed.

 

IT IS THEREFORE ORDERED THAT:

 

1.   Board Order No.  A.I. 15 (2001-2002) be and it is hereby rescinded.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 Liability

$ 788.76

$ 426.30

$ 332.94

Collision

210.83

247.68

307.10

Comprehensive

124.23

92.71

127.21

Specified Perils

49.65

20.96

25.15

Accident Benefits

73.00

65.00

65.00

Uninsured Motorist

21.00

11.00

11.00

All Perils

327.42

317.22

402.51

 

            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%

 

all common coverage, excluding comprehensive and specified perils

ii.

age

5%

 

third party liability, collision, all perils, comprehensive, accident benefits and specified perils

iii.

short commute

5%

third party liability, collision, collision portion of all perils, accident benefits, and uninsured auto

iv.

full package

5%

third party liability, collision, all perils, comprehensive, accident benefits, and specified perils

 

v.

student

50%

third party liability, collision, and collision portion of all perils

 

vi.

farmer’s

40%

third party liability, collision,  comprehensive, all perils and specified perils

 

vii

multi-lines

5%

all coverages, excluding endorsements

 

 

4.      These rates shall be effective October 1, 2001 for new business and December 1, 2001 for renewals.

 

5.      CGU Insurance Company of Canada, upon issuance of the 2002 Filing Instructions by the Board, shall submit a revised Private Passenger rate filing in according with those instructions.

 

 


Dated at St. John's, Newfoundland, this 20th day of September, 2001.

 

 

 

                                                              

Darlene Whalen, P.Eng.

Vice-Chairperson

 

 

                                                           

Cheryl Blundon

Board Secretary


 

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