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, and

 

WHEREAS the report concludes for those rates outside the benchmarks, the proposed rate changes are lower than the indicated rate changes, with the exception of comprehensive, 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 a copy of the report and supported rates was provided to Lombard Canada, and

 

WHEREAS, on May 11, 2001, Lombard Canada amended its January 31, 2001 filing to reflect the findings of the Board’s actuaries, and

 

WHEREAS the Board, after due examination and analysis of the proposed rating program, as amended, and after consideration of the Actuarial Consultants’ report on the filing and advice of staff, finds that it meets the filing requirements established for non-Benchmark rates and should be approved, and

 

 

 

IT IS THEREFORE ORDERED THAT:

 

1.                  Order No. A.I. 57 (1998-99) be and it is hereby rescinded.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	$907.00	$ 454.00	$ 370.00
Collision	237.00	223.00	288.00
Comprehensive	108.00	82.00	104.00
All Perils	323.00	288.00	371.00
Specified Perils	33.00	25.00	32.00
Accident Benefits	84.00	84.00	84.00
Uninsured Motorist	18.00	14.00	13.00

 

 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.	student, away-from-home	50%	class 05 or 06, third party liability & collision,
ii.	multi vehicle	15%	common coverages of third party liability, collision, collision portion of all perils, accident benefits
iii.	mature driver:          age 50 – 59 –            age 60 – 70 -	10%   15%	all coverages
iv.	claims free	5%	all coverages
v.	loyalty	3%     5%     10%	minimum of 2 years insured with the company   minimum of 5 years insured with the company   10 or more years insured with the company
vi.	personal choice	10%	all coverages
vii.	preferred risk	5%	all coverages

 

4.         The rates established by way of this Order are to be implemented on June 1, 2001 for new business and July 1, 2001 for renewals.

 

 

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