A.I. 19 (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
Pricewaterhouse
Coopers
on
behalf of
Colonial
Fire & General Insurance Company Limited
TO IMPLEMENT REVISED RATES FOR ITS
PRIVATE PASSENGER CLASS OF BUSINESS.
WHEREAS,
by application received February 1, 2001, Pricewaterhouse Coopers on behalf of
Colonial Fire & General Insurance Company Limited applied to the Board for
approval to implement a revised rating program for its Private Passenger class
of business, and
WHEREAS
upon preliminary review, it was determined that a number of the proposed or
adjusted proposed base rates did not 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 of Colonial Fire & General
Insurance Company Limited 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 a copy of the report was provided to
Pricewaterhouse Coopers, and
WHEREAS Pricewaterhouse Coopers, on May 9, 2001,
submitted to Milliman & Robertson, Inc. revisions to the original filing,
and
WHEREAS, on May 10, 2001, the Board received a further
report from its actuaries expressing their opinion of the filing following the
revisions made, and
WHEREAS the revised report indicates that the proposed
rates are now above the indicated rate changes and are reasonably supported by
the actuarial analysis, and
WHEREAS Colonial Fire & General Insurance Company
Limited has proposed a differential for its $2,000,000 liability limit in
excess of the +15% without providing justification, and
WHEREAS the Board, after due examination and analysis
of the proposed rating program and after consideration of the Actuarial
Consultants’ revised 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. 32 (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 |
$ 683.00 |
$ 381.00 |
$ 282.00 |
|
Collision |
198.00 |
237.00 |
239.00 |
|
Comprehensive |
96.00 |
79.00 |
93.00 |
|
All
Perils |
273.00 |
299.00 |
312.00 |
|
Specified
Perils |
42.00 |
22.00 |
20.00 |
|
Accident
Benefits |
77.00 |
70.00 |
70.00 |
|
Uninsured
Motorist |
22.00 |
11.00 |
8.00 |
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. |
multi-vehicle |
10% |
third party liability, collision, |
|
ii. |
age |
5% |
third party liability, collision, |
4. 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.
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