A.I. 23 (2000-2001)
IN THE MATTER OF
THE AUTOMOBILE
INSURANCE ACT,
CHAPTER A - 22, R.S.N. 1990
AND
IN THE MATTER OF AN
APPLICATION BY
Axa Canada on
behalf of
the Insurance
Corporation of Newfoundland (ICON)
FOR APPROVAL OF A
REVISED RATING PROGRAM
FOR ITS PRIVATE
PASSENGER CLASS OF BUSINESS.
WHEREAS, by application received August 21, 2000 Axa Canada on behalf of
the Insurance Corporation of Newfoundland (ICON) 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 benchmark rate ranges of
acceptable rates, and
WHEREAS, the applicant has submitted actuarial analysis in support of
the establishment of the rates which did not conform with the benchmark rate
ranges of acceptable rates, and
WHEREAS, the Board submitted the filing of the Insurance Corporation of
Newfoundland (ICON) 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 the filing was based on the 1998 benchmark ranges and
differentials, and
WHEREAS subsequent to receiving the filing and prior to its review, the
Board adopted new Benchmarks for filings with effective dates of June 1, 2001
for new business and July 1, 2001 for renewals, and
WHEREAS the Board directed its Actuary to review the filing based on the
2001 Benchmarks, and
WHEREAS, on November 17, 2000, the Board received the report of its
Actuarial Consultants with respect to the filing of the Insurance Corporation of Newfoundland (ICON), which indicated
that the proposed rate change was not actuarially supported in relation to the
2001 Benchmarks, and
WHEREAS, the Board believes it is appropriate to review the filing under
the in-force 1998 Benchmarks, and
WHEREAS, the Board deems it appropriate to deal with the current filing
and to require Insurance Corporation of Newfoundland (ICON) to submit a
subsequent filing utilizing the 2001 Filing Instructions issued on November 6 ,
2000, and
WHEREAS, after
due examination and analysis of the proposed rating program, and after
consideration of the Actuarial Consultants' report on the filing, and the
advice of Board staff, the Board finds that it should be approved as
filed.
IT IS
THEREFORE ORDERED THAT:
1.
Order No. A.I. 33 (1998-99) be and it is hereby
rescinded.
2.
Approval be and it is hereby granted the Insurance Corporation
of Newfoundland (ICON) for the implementation of a revised rating program for
its Private Passenger class of business with base rates as follows:
Territory
|
|
1 |
2 |
3 |
|
Third
Party |
$794 |
$419 |
$291 |
|
Collision |
203 |
225 |
222 |
|
Comprehensive |
108 |
87 |
104 |
|
Specified
Perils |
46 |
25 |
23 |
|
Accident
Benefits |
69 |
69 |
69 |
|
Uninsured
Motorist |
22 |
11 |
8 |
and differentials
as submitted with the filing.
3. The following discounts have been approved for use subject to the eligibility criteria set out in the company’s underwriting manual:
|
i. |
Multi-vehicle |
12% |
Third Party
Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits |
|
ii. |
Seniors: Age 40 to 49:- Age 50 to 80:- |
5% 10% |
Third Party
Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits |
|
iii |
Short-commute |
20.5%
for 3.4%
for |
Third Party
Liability Collision |
|
iv. |
Student,
away-from-home |
50% |
Third Party
Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits |
|
v. |
Auto/home |
5% |
Third Party
Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits |
|
vi. |
Employee |
10% |
Third Party
Liability, Collision, Comprehensive, Specified Perils, and Accident Benefits |
4.
These rates shall be effective January 1, 2001 for new business, and
February 1, 2001 for renewals.
5.
Insurance Corporation of Newfoundland (ICON) shall, no
later than February 1, 2001, submit an actuarially-supported private passenger
rate filing utilizing the 2001 Filing Instructions.
Dated
at St. John's, Newfoundland, this 20th
day of December, 2000.
David A. Vardy,
Chairperson
Darlene
Whalen, P. Eng.
Vice-Chairperson
Cheryl Blundon,
Board Secretary