A.I. 63 (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
Axa
Canada on behalf of
Insurance
Corporation of Newfoundland
TO IMPLEMENT REVISED RATES FOR ITS
PRIVATE PASSENGER CLASS OF BUSINESS.
WHEREAS,
by application received August 3, 2001, Axa Canada on behalf of Insurance
Corporation of Newfoundland 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, after due examination and analysis
of the proposed rating program, finds that it should be approved as filed.
IT
IS THEREFORE ORDERED THAT:
1. Order No. A.I.16 (2001-2002) be and it is hereby rescinded.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 |
$ 848.00 |
$ 460.00 |
$ 320.00 |
|
Collision |
200.00 |
248.00 |
244.00 |
|
Comprehensive |
107.00 |
86.00 |
103.00 |
|
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.
3.
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 |
4.
These rates established by way of this Order
are to be implemented on January 1, 2002 for new business and
renewals.
5.
Axa Canada, on behalf of Insurance Corporation
of Newfoundland, upon issuance of the 2002 Filing Instructions by the Board,
shall submit a revised private passenger rate filing in accordance 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