A - FSCO Private Auto & Reg 664 Flashcards
FSCO Private Auto
Rating Prohibited factors (UDAP)
- Past NAF claims (fault less than 25%)
- existence of medical plan or income continuation plan
- lapse in coverage, unless:
- –insured contravened Insurance Act
- –cancellation for non payment
- –suspension of license
- –insurer did not inform insurer of accident or conviction which would have led to higher premium
- level of income
- employment history
- occupation
- own a credit card
- credit history
- credit rating
- history of bankruptcy
- residence history
- own a home
- gross or net worth
- debt of a person
- late or dishonored payment when policy was not terminated
- minor accidents
FSCO Private Auto
5 requirements for an automobile rate filing application to be approved by FSCO
1) OAB needs as in SABs
2) deductible of 500$ for coll, comp, dc-pd
3) Mandatory Retiree discount only on PPA
4) Mandatory winter tire discount only on PPA
5) Added Coverage to Offset Tort Deductible Endt (OPCF48)
FSCO Private Auto
Requirements on the Graduated Licensing System in Automobile Rate Flings for FSCO
- G1 not rated
- G2 drivers can be rated,
- Transition G1 to G2 : must credit must credit driving experience to a max of 1 year
- Transition G2 to G : must credit must credit driving experience to a max of 1 year
- G1 to G2 or G2 to G should receive a 10% reduction on all cvg if no conviction or AF accident
FSCO Private Auto
Types of ON filings a PPA are subject to?
Types of ON filings a Non-PPA are subject to?
PPA
- Simplified Filing
- CLEAR Simplified Filing
- Major Filing
NON-PPA
- Major Filing (when 1st application to category or FSCO considers it appropriate)
- Minor Filing
FSCO Reg 664
Define Affiliated Insurer.
2 FSCO’s requirements to affiliated insurers
If one is the subsidiary of the other OR each is controlled by the same person, both are subsidiaries of same corporation
SI may ask that filing of subsidiaries be filed at the same time
Insurer must provide the lowest rate available of any affiliated insurers
FSCO Reg 664
FSCO Monthly Premium Payments
le paiement mensuel doit être permis s’il
- s’agit d’un gros assureur (10K PPA in Ontario)
- s’il y a 5 vehicules ou moins sur la police
- si la prime est plus grande que 300$
- si l’assuré a eu moins d’une cancellation pour non paiement.
l’assureur peut demander :
- 2 paiements lors du paiement initial
- que les paiements soient fait par pre-authorized debit from financial institution
le taux d’intérêt maximal
1.3% pour les contrats de 12 mois +
.65% pour les contrats de 6-12 mois
.22% pour les contrats de 0-6 mois.
FSCO Reg 664
Interdiction de refuser d’émettre un contrat seulement parce que :
- l’appliquant a été ou est dans Facility Association
- un autre assureur a décliné d’émettre
- en fonction des facteurs prohibés en tarification
FSCO Reg 664
Criteria for an Expedited Filing
KPMG Regulatory Oversight
(based on FSCO website as article is outdated)
Criteria for a Simplified Filing
EXPEDITED FILING
-PPA only
§ on a avg proposed rate change on all coverage less or equal to 0%
-for each terr, the chg in rates is not more than +-5% for that coverage
-no change to algorithm nor differential, discounts or surcharges.
SIMPLIFIED FILING if:
§ no change to rating algo
§ on a cvg combined basis, proposed rate change less or equal to 0%
§ Any terr base rate or diff. change between -15% and +5%
§ any other change to differential between -15% and +5% with no offbalancing.
§ change to existing classification elements are permitted
§ new discount can be introduced (except UBI) if already done by approved for another insurer in ON
FSCO PRIVATE AUTO
Elements of actuarial analysis that an actuary must
certify (certificate of the actuary)
PPA and Dependants : MC, MH, Trailer camper, Off-road, snow, historic veh, commercial veh, taxi limousines,
data was reviewed for reasonableness and consistency, is reliable ans sufficient for determination of indications
indications calculated in accordance with AAP
Opine that Risk Classification is
- just and reasonable,
- reasonably predictive of risk and
- distinguishes fairly between classes
