Question 6:     What is the role of the Board in relation to automobile insurance?

The Board is responsible for the supervision of rates charged by automobile insurers for the various automobile insurance coverages. Insurers are required to file the rates it proposes to charge for automobile insurance with the Board prior to implementation. The Board reviews the proposed rates and, in accordance with legislation in the province, makes a decision to approve, prohibit or vary the rates. The Board will prohibit the rates filed by insurers where it determines that the proposed rates:

a) are not just and reasonable in the circumstances;
b) would impair the solvency of the insurer;
c) are excessive in relation to the financial circumstances of the insurer; or
d) violate the Automobile Insurance Act, the Insurance Companies Act or the respective regulations thereunder.

The Board is also responsible for oversight of the risk classification systems and underwriting rules used by insurers.

• Risk Classification Systems - refers to the systems used by insurers to classify risks to determine the premium an individual will pay. Factors considered may include driving record, value and type of vehicle, vehicle use, number of kilometres driven annually, geographic territory, etc.

• Underwriting Rules - refer to the rules used by insurers to determine whether to accept or decline a risk, coverage, deductible level, or liability limit.

The Board’s regulatory authority with respect to automobile insurance regulation is set out in the Automobile Insurance Act, the Insurance Companies Act, and the regulations thereunder. Please visit the Legislation section of the Board’s website for further details.