A - FSCO Private Auto & Reg 664 Flashcards
FSCO Private Auto
Prohibited rating factors (UDAP)
- Not at fault accident (≤ 25%)
- Existence or not of a first layer insurance plan (instead of SABS)
- Lapse in coverage, unless certain circumstances (e.g. suspension of license, cancellation for non-payment)
- Level of income, gross or net worth
- Employment history
- Credit info (credit card, credit history, credit rating, bankruptcy, indebtedness)
- Residence history, own a home or not
- Minor accidents that occurred on or after June 1st, 2016
FSCO Private Auto
5 requirements for an automobile rate filing application to be approved by FSCO
1) OAB as set out 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 driving experience to a max of 1 year
- Transition G2 to G : 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
Monthly premium payments must be allowed if:
- Big insurer (10K PPA in Ontario)
- 5 or less vehicles on Policy
- Premium is higher that $300
- Insured has less than 1 non-payment cancellation
Insurer can ask the following:
- 2 payments at onset of Policy
- Payments to be made by pre-authorized debit from Financial institution
Max interest rate:
- 1.30%: Contracts 12+ months
- 0.65%: Contacts 6-12 months
- 0.22%: Contracts 0-6 months
FSCO Reg 664
No insurer shall decline to issue/renew/terminate solely because:
- The applicant is or was insured by the FA
- Another insurer declined to issue/renew contract
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
- 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,
1) Ensure data:
- was reviewed for reasonableness and consistency
- is reliable and sufficient for determination of indications
2) Ensure indications were calculated in accordance with AAP
3) Opine that Risk Classification is:
- just and reasonable,
- reasonably predictive of risk and
- distinguishes fairly between classes
