B - PACICC Flashcards
PACICC
Goal of PACICC
Non-profit organization
To protect policyholders from financial loss if insurer becomes insolvent
All included companies must participate to PACICC (participating insurers)
PACICC
Who is excluded from PACICC
- MPIC, Saskatchewan, SAAQ BI Claims
- Accident and sickness alone or with life insurance
- Life insurance, aircraft, credit, crop, director, officers, employers liability, e and o’s, fidelity, financial guarantee, marine, mortgage, surety, title
- Accident and sickness with general insurance is included
- other government mandated insurers are included
PACICC
2 conditions for PACICC obligations to start
Insurer must write a line of business that is covered under PACICC
starts upon a formal WINDING UP ORDER
PACICC
Describe the payment under PACICC
It refunds (Auto up to 250K) (Property up to 300K) for a single-named insured, from a single occurrence
-Loss from a single occurrence are aggregated
=Min( 250K or 300K ; GUL subject to deductible and limit)
It refunds for premium paid in advance to a maximum of 700$
=min(70% Unearned Premium *; 700)
PACICC
Determine the PACICC assessment of a given participating insurer
Assessment of an insurer = Minimum ( 1.5% x WP of insurer ; Total Assessment in jurisdiction x WP of insurer / WP of all participating insurers )