A.I. 60 (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
CGU
Insurance Company of Canada
(the
Applicant)
FOR
APPROVAL OF A REVISED RATING PROGRAM
FOR
ITS PRIVATE PASSENGER CLASS OF BUSINESS
WHEREAS, by application
received July 27, 2001, CGU Insurance Company of Canada applied to the Board
for approval to implement a revised rating program for its Private Passenger
class of business, and
WHEREAS, upon preliminary
review, a number of the proposed or adjusted proposed base rates were found not
to 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, after due examination and analysis of the proposed rating program finds
that it should be approved as filed.
IT IS THEREFORE ORDERED THAT:
1. Board Order No. A.I. 15 (2001-2002) 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rescinded.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 Liability |
$ 788.76 |
$ 426.30 |
$ 332.94 |
|
Collision |
210.83 |
247.68 |
307.10 |
|
Comprehensive |
124.23 |
92.71 |
127.21 |
|
Specified Perils |
49.65 |
20.96 |
25.15 |
|
Accident Benefits |
73.00 |
65.00 |
65.00 |
|
Uninsured Motorist |
21.00 |
11.00 |
11.00 |
|
All Perils |
327.42 |
317.22 |
402.51 |
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% |
all common coverage, excluding
comprehensive and specified perils |
|
ii. |
age |
5% |
third party liability, collision, all
perils, comprehensive, accident benefits and specified perils |
|
iii. |
short
commute |
5% |
third party liability, collision,
collision portion of all perils, accident benefits, and uninsured auto |
|
iv. |
full package |
5% |
third
party liability, collision, all perils, comprehensive, accident benefits, and
specified perils |
|
v. |
student |
50% |
third
party liability, collision, and collision portion of all perils |
|
vi. |
farmer’s |
40% |
third
party liability, collision,
comprehensive, all perils and specified perils |
|
vii |
multi-lines |
5% |
all
coverages, excluding endorsements |
4. These
rates shall be effective October 1, 2001 for new business and December 1, 2001
for renewals.
5. CGU Insurance Company of Canada, upon
issuance of the 2002 Filing Instructions by the Board, shall submit a revised
Private Passenger rate filing in according with those instructions.
Dated
at St. John's, Newfoundland, this 20th day
of September, 2001.
Darlene Whalen, P.Eng.
Vice-Chairperson
Cheryl Blundon
Board Secretary