A.I. 21 (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
AON
Risconcept. Inc.
on
behalf of
Metro
General Insurance Corporation
TO IMPLEMENT REVISED RATES FOR ITS
PRIVATE PASSENGER CLASS OF BUSINESS.
WHEREAS,
by application received February 21, 2001, AON Risconcept. Inc. on behalf of
Metro General Insurance Corporation 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 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 Metro General Insurance
Corporation, 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, finds that it should be approved as filed.
IT IS THEREFORE ORDERED THAT:
1. Order
No. A.I. 37
(1998-99) be and it is hereby rescinded.
2.
Approval be and it is hereby granted Metro
General Insurance Corporation for the implementation of a revised rating
program for its Private passenger class of business with base rates as follows:
|
Territory |
1 |
2 |
3 |
|
Third Party Liability |
$
730.00 |
$
436.00 |
$
303.00 |
|
Collision |
188.00 |
208.00 |
220.00 |
|
Comprehensive |
92.00 |
75.00 |
89.00 |
|
Specified Perils |
33.00 |
19.00 |
17.00 |
|
Accident Benefits |
70.00 |
58.00 |
58.00 |
|
Uninsured Motorist |
25.00 |
12.00 |
9.00 |
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, & accident benefits |
|
ii. |
age |
5% |
third party liability,
collision, comprehensive, specified perils, uninsured motorists, &
accident benefits |
|
iii. |
more vehicles than operators |
50% |
third party liability,
collision, accident benefits, & uninsured motorists |
|
iv. |
select class |
10% |
third party liability, collision, comprehensive, & accident benefits |
|
v. |
renewal |
5% |
third party liability, & collision |
|
vi. |
student, away-from-home |
50% |
lowest of class 05 or 06 premiums only |
4.
The rates established by way of this Order are
to be implemented June 1, 2001 for new business and 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