A.I. 15 (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 February 1, 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 has
submitted the filing 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, on May 7, 2001, the Board received the report of its actuaries
with respect to the filing, and
WHEREAS the Actuarial Consultants’ report concluded that the proposed rates outside the Benchmarks are reasonably supported by the actuarial analysis submitted, and
WHEREAS the Actuarial Consultants’ report makes certain observations
regarding the calculation of off-balance factors, loss adjustment expense, and
loss-development triangles, and
WHEREAS the
Board, after due examination and
analysis of the proposed rating program and after consideration of the
Actuarial Consultants' report on the filing, finds that it should be approved
as filed
IT IS THEREFORE ORDERED THAT:
1. Board Order No. A.I. 60 (1998-99) 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rescinded.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 |
$ 704.25 |
$ 419.29 |
$ 332.94 |
|
Collision |
234.25 |
247.68 |
307.10 |
|
Comprehensive |
124.23 |
92.71 |
127.21 |
|
Specified Perils |
49.65 |
20.96 |
25.15 |
|
Accident Benefits |
65.00 |
65.00 |
65.00 |
|
Uninsured Motorist |
20.00 |
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 |
|
iv. |
full package |
5% |
third
party liability, collision, all perils, comprehensive, accident benefits, and
specified perils |
|
v. |
renewal |
7.5% |
third
party liability, collision,
comprehensive, accident benefits and specified perils |
|
vi. |
student |
50% |
third
party liability, collision, collision portion of all perils, and specified
perils |
|
vii |
farmer’s |
40% |
third
party liability, collision,
comprehensive, all perils and specified perils |
|
viii. |
multi-lines |
5% |
all
coverages, excluding endorsements |
4. These
rates shall be effective June 1, 2001 for new business and July 1, 2001 for
renewals.
Dated
at St. John's, Newfoundland, this 16th day of
May, 2001.
Robert Noseworthy
Chairperson & Chief Executive
Officer
Darlene Whalen, P.Eng.
Vice-Chairperson
Barbara Thistle
Assistant Board Secretary