Question 15: What rating factors are automobile insurers prohibited from using in Newfoundland and Labrador?

Rating factors are used by automobile 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.

Automobile insurers are prohibited from using any risk classification element that is not just and reasonable, is not reasonably predictive of the risk, does not distinguish fairly between risks, or is otherwise prohibited in the regulations. The rating factors that are specifically prohibited in regulations include the following:

• age, sex, and marital status with the exception of discounts to insureds aged 55 years and older
• not at fault losses
• insured has inquired as to coverage or has advised of an accident for which no payment of indemnity was made
• nonpayment of premium, other than the first payment, if amount is paid within 30 days it was due
• insured has been declined or refused insurance by another insurer
• lapse in insurance coverage of less than 24 months, with specific exceptions
• any element associated with an excluded driver or the claim of a driver subsequently excluded
• credit information.

Please see Newfoundland and Labrador Regulation 80/04 for further details:
https://www.assembly.nl.ca/Legislation/sr/Regulations/rc040080.htm