IN THE MATTER OF THE AUTOMOBILE
INSURANCE ACT, CHAPTER A - 22,
R.S.N. 1990
AND
IN THE MATTER OF A REVIEW OF
THE AUTOMOBILE INSURANCE RATES OF
Hartford
Fire Insurance Company
WHEREAS the Board, on November 6, 2000, issued its
annual automobile insurance rate filing instructions to automobile insurers
writing business in the Province, and
WHEREAS,
the instructions advised insurers of a requirement to file rates within the
Board’s 2001 Benchmarks or to justify those rates which did not conform with
the Benchmarks, and
WHEREAS
the instructions also advised insurers that a failure by the insurer to provide
the information required by the Board could result in the Board setting rates
for the insurer within the 2001 Benchmark ranges, and
WHEREAS the instructions advised insurers of the requirement to submit non-Benchmark rate filings no later than February 1, 2001 or, in the alternative, Benchmark rate filings no later than April 1, 2001, and
WHEREAS, as of May 15,
2001, Hartford
Fire Insurance Company has not made a filing in accordance with the 2001 Filing
Instructions, and
WHEREAS
Section 53(2) of the Act states:
“Where the rates filed as
required by Section 49, or the application for a change in rates under Section
51, have been approved or considered to have been approved under Subsection
(1), the Board may investigate the rates charged by the insurer and,
notwithstanding approval of those rates or that they are considered to have
been approved, may order the insurer to make the changes the Board considers
appropriate,”
and
WHEREAS Section 49(1) of the Act states:
“An insurer shall annually file with the Board the rates it proposes to charge for automobile insurance”.
IT IS THEREFORE ORDERED THAT:
1. Order No. A.I. 53 (1998-99) be and it is hereby rescinded.
2.
The following rates be implemented by Hartford Fire Insurance
Company for the Private Passenger and/or Commercial automobile insurance written in the Province
of Newfoundland and Labrador on, and after, June 1, 2001 for new business and
no later than August 1, 2001 for renewals:
For companies utilizing MSRP Rate Groups:
|
|
Private Passenger |
Commercial |
||
|
Territory |
1 |
2 |
3 |
All |
|
Third
Party Liability |
$ 770 |
$ 427 |
$ 327 |
$ 590 |
|
Accident
Benefits |
82 |
82 |
82 |
26 |
|
Uninsured
Motorist |
31 |
17 |
13 |
9 |
|
Collision
(MSRP) |
193 |
235 |
253 |
199 |
|
Comprehensive
(MSRP) |
118 |
94 |
120 |
128 |
|
All
Perils (MSRP) |
285 |
309 |
347 |
286 |
|
Specified
Perils (MSRP) |
39 |
21 |
20 |
58 |
For
companied utilizing the CLEAR Private Passenger and MSRP Commercial Rate Groups:
|
|
Private Passenger |
Commercial |
||
|
Territory |
1 |
2 |
3 |
All |
|
Third
Party Liability |
$ 770 |
$ 427 |
$ 327 |
$ 590 |
|
Accident
Benefits |
82 |
82 |
82 |
26 |
|
Uninsured
Motorist |
31 |
17 |
13 |
9 |
|
Collision
(CLEAR) |
203 |
248 |
267 |
199 |
|
Comprehensive
(CLEAR) |
123 |
98 |
110 |
128 |
|
All
Perils (CLEAR) |
300 |
325 |
353 |
286 |
|
Specified
Perils (CLEAR) |
35 |
19 |
18 |
58 |
3.
Hartford
Fire Insurance Company is to file with the Board, no later than June 15, 2001,
revised rate pages reflecting the changes herein ordered and developed
utilizing the differentials as established by the 2001 Benchmarks and appended
to this order.
4.
The
rates ordered herein may not be altered or varied by the application of any
surcharges or discounts.
5.
Rates
established by the order are to be implemented June 1, 2001 for new business
and no later than August 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