A.I. 24 (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
The
Dominion of Canada General Insurance Company
(the
Applicant)
FOR
APPROVAL OF A REVISED RATING PROGRAM
FOR
ITS PRIVATE PASSENGER CLASS OF BUSINESS
WHEREAS, by application
received August 17, 2000, The Dominion of Canada General Insurance Company
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 rates which do
not conform with the benchmark rate ranges of acceptable rates, and
WHEREAS, the Board has
submitted the filing of the Applicant 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 28, 2000, the Board received the report of its
Actuarial Consultants with respect to the filing of The Dominion of Canada
General Insurance Company 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 The Dominion of Canada General Insurance Company 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. Board Order No. A.I. 47 (1998-99) be and it is hereby
rescinded.
2. Approval be and
it is hereby granted The Dominion of Canada General Insurance Company for the
implementation of a revised rating program for its Private Passenger class of
business with base rates as follows:
|
Private Passenger |
|||
|
Territory |
1 |
2 |
3 |
|
Third
Party |
$ 692.81 |
$ 380.18 |
$ 267.25 |
|
Collision |
190.72 |
193.08 |
227.76 |
|
Comprehensive |
98.11 |
96.37 |
117.51 |
|
Specified
Perils |
40.61 |
23.63 |
23.69 |
|
Accident
Benefits |
78.00 |
60.00 |
60.00 |
|
Uninsured Motorist |
24.00 |
15.00 |
12.00 |
|
All Perils |
288.83 |
289.45 |
345.27 |
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% |
|
|
ii. |
dual
policy |
5% |
|
4.
The Dominion of Canada General Insurance Company
shall, no later than February 1, 2001, submit an actuarially-supported private
passenger rate filing utilizing the 2001 Filing Instructions.
5.
The rates
established by way of this Order are to be implemented on February 1, 2001 for
new business, and March 1, 2001 for renewals.
Dated
at St. John's, Newfoundland, this 20th
day of December, 2000.
David A. Vardy,
Chairperson
Darlene Whalen,
P. Eng.
Vice-Chairperson
Barbara Thistle
Assistant Board Secretary