AB - Auto Reform Flashcards

1
Q

Identify the goals of Alberta auto insurance reform (7).

A
  • private sector delivery model
  • claims handling: effective and efficient
  • medical benefits: make sure they are appropriate
  • income replacement: easier access
  • reduce costs
  • stabilize rates: should be affordable for all Albertans
  • sustainability: the needs of insureds, “traffic-injured” persons, and insurance providers need to be met
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2
Q

Briefly describe the findings of the Alberta auto insurance committee. (5)

A
  • high premium were caused by increasing BI (bodily injury) costs (specifically non-pecuniary awards for pain and suffering due to the tort system)
  • no mechanisms existed to control these BI costs
  • injury compensation was often either too high or too low
  • health outcomes are worse under tort system (and hybrid tort/no-fault systems)
  • health outcomes improved when tort systems were eliminated and replaced with full no-fault models
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3
Q

Name 2 provinces that have pure no-fault systems.

A

Manitoba and Quebec.

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4
Q

Identify the recommendations of the Alberta auto insurance committee. (2)

A
  • replace existing hybrid tort/no-fault model with a pure no-fault model
  • introduce a “continuum of care model” to promote appropriate medical evaluation, assessment and treatment
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5
Q

Why might a pure no-fault system be cheaper and deliver more effective medical treatment.

A

Benefits can be delivered without having to prove who is at fault:

  • less money tied up in legal system (lawyer fees)
  • quicker access to medical care
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6
Q

Describe how Alberta’s new auto insurance is recommended to work.

A

Create a Traffic Injury Regulator, including a Board and Tribunal to oversee the 4 arms of accident care and compensation:

1) claims administration and support
2) medical experts to evaluate injuries
3) claims assessment panels for income replacement
4) a reconstituted version of AIRB (Automobile Insurance Rate Board)

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7
Q

How might the ‘4 arms’ of Alberta’s Traffic Injury Regulator be funded?

A
  • mainly by Alberta auto insurers in proportion to their market share
  • a smaller contribution by the Alberta government (from savings generated by the new system)
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8
Q

Assess the likelihood of a successful legal challenge if Alberta’s auto reforms are implemented.

A

A legal challenge would probably not be successful for the following reasons:

  • Manitoba and Quebec already have a pure no-fault system
  • such systems have been judged to be within the scope of provincial legislative authority
  • a challenge under Canada’s Charter of Rights and Freedoms has no merit because all drivers are treated equally
  • Morrow v Zhang upheld the minor injury cap, so a future Charter challenge would likely not succeed either
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9
Q

Identify regulatory reforms being considered for Alberta auto insurance. (2)

A
  • switch from ‘prior approval’ to ‘file and use’

- make winter tires mandatory from October to March

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10
Q

Identify problems that Alberta and Ontario auto insurance have in common. (2)

A
  • rising costs of auto insurance (largely driven by BI (bodily injury) costs)
  • inefficient delivery of medical care
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11
Q

What has been identified as the primary cause of the problems in AB and ON auto insurance?

A

Both systems have a tort component which causes:

  • delays in medical care
  • diversion of resources to the legal system
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12
Q

Identify a similarity in recommendations to address these problems in AB and ON auto insurance.

A

Provide a greater focus on timely medical care.

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13
Q

Identify a difference in recommendations to address these problems in AB and ON auto insurance.

A
  • AB: convert to a pure no-fault system
  • ON: keep hybrid tort/no-fault system, but fix structural flaws by appointing an arms-length regulator with powers to enact policies and procedures)
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