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 from its actuaries with respect to the filing of The Personal Insurance Company of Canada, and

 

WHEREAS, the report concludes that rates for third party liability and accident benefits outside the benchmarks are lower than the indicated rate changes and that the filing does not support the proposed rate changes, and

 

WHEREAS the requirements set out in the Board’s 2001 Filing Instructions issued November 2000 require companies to justify those rates not conforming with the Benchmarks with reasonable actuarial analysis of the company’s experience in Newfoundland and Labrador, and

 

WHEREAS the Board’s actuaries have advised the Board of the rates outside the Benchmarks supported by the filing, and

WHEREAS on May 16, 2001, The Personal Insurance Company of Canada, by fax, submitted a revised schedule of rates, proposing rates on a filed and adjusted basis that conform with the 2001 Benchmarks, and

 

WHEREAS The Personal Insurance Company of Canada  has requested  effective dates  of June 1, 2001 for new business and September 1, 2001 for renewals, and

 

WHEREAS the Board, after due examination and analysis of the revised proposed rating program, finds that it should be approved.

 

 

 

 

IT IS THEREFORE ORDERED THAT:

 

            1.         Order No. A.I. 50 (1998-99) be and it is hereby rescinded.

 

2.                  The non-benchmark rates proposed in the filing by The Personal Insurance Company of Canada are not approved.

 

3.                  The following base rates are hereby approved for use by the company:

Territory	1	2	3
Third Party	$ 945.61	$ 477.05	$ 345.31
Collision	246.20	262.03	265.76
Comprehensive	139.95	112.21	134.85
All Perils	355.07	353.21	373.28
Specified Perils	60.96	31.99	25.83
Accident Benefits	61.45	61.37	61.40
Uninsured Motorist	24.17	13.42	9.30

 

 and differentials as submitted with this filing.

4.         The following discounts are approved for use subject to the eligibility criteria set out in the company=s underwriting manual:

i.	no-claims	10%	All coverage
ii.	multi-vehicle	10%	All coverage
iii.	age:  primary operator             30 – 34 years             35 – 54 years             Over 54 years	5% 8% 14%	All coverage

 

5.      The rates established by way of this Order are to be implemented  June 1, 2001 for new business and no later than September 1, 2001 for renewals.

 

6.      The Personal Insurance Company of Canada shall file with the Board no later than June 15, 2001 revised rate pages developed utilizing the base rates approved in this Order and the differentials as submitted with the filing received February 7, 2001.

 

 

Dated at St. John's, Newfoundland, this 16^th day of May, 2001.

 

 

                                                                 

Robert Noseworthy

Chairperson & Chief Executive Officer

 

 

 

 

                                                              

Darlene Whalen, P.Eng.

Vice-Chairperson

 

 

 

 

 

 

                                                           

Barbara Thistle

Assistant Board Secretary