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 that the proposed rate changes 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, after due examination and analysis of the proposed rating program and after consideration of the Actuarial Consultants’ report on the filing and advice of staff, finds that it does not meet the filing requirements established for non-Benchmark rates and should not be approved, and

 

WHEREAS the Board requires all companies to file rates in accordance with the 2001 Benchmark Ranges and Filing Instructions, and

 

WHEREAS the Board has been advised by its Actuarial Consultants of the rates reasonably supported by the filing.

 

 

IT IS THEREFORE ORDERED THAT:

 

            1.         Order No. A.I. 23 (2000-2001) be and it is hereby rescinded.

 

2.                  The non-benchmark rates proposed in the filing by Axa Canada on behalf of Insurance Corporation of Newfoundland are not approved.

 

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

 

Territory	1	2	3
Third Party	$ 764.00	$ 444.00	$ 309.00
Collision	198.00	244.00	240.00
Comprehensive	103.00	83.00	99.00
Specified Perils	43.00	24.00	22.00
Accident Benefits	69.00	69.00	69.00
Uninsured Motorist	22.00	11.00	8.00

 

 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.	multi-vehicle	12%	third party liability, collision, comprehensive, specified perils and accident benefits
ii.	seniors:  age 40 – 49  →               age 50 – 80  →	5% 10%	third party liability, collision, comprehensive, specified perils and accident benefits
iii.	short-commute	21%   3.9%   8.2%   9.5%	third party liability, territory 1   third party liability, territories 2 and 3   collision, territory 1   collision, territories 2 and 3
iv.	student, away from home	50%	third party liability, collision, comprehensive, specified perils and accident benefits
v.	auto/home	5%	third party liability, collision, comprehensive, specified perils and accident benefits
vi.	employee	10%	third party liability, collision, comprehensive, specified perils and accident benefits

 

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

 

6.      Axa Canada, on behalf of Insurance Corporation of Newfoundland, shall file with the Board no later than June 22, 2001, revised rate pages developed utilizing the base rates approved in this order and the differentials as submitted with the rate filing received February 1, 2001.

 

 

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