A - FSCO Private Auto & Reg 664

Question 1

FSCO Private Auto

5 requirements for an automobile rate filing application to be approved by FSCO

Answer 1

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)

Question 2

FSCO Reg 664

Criteria for an Expedited Filing

KPMG Regulatory Oversight

(based on FSCO website as article is outdated)
Criteria for a Simplified Filing

Answer 2

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

Question 3

FSCO PRIVATE AUTO

Elements of actuarial analysis that an actuary must
certify (certificate of the actuary)

Answer 3

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