FSCO Reforms

Question 1

Effective date and goal of Ontario Auto Reforms

Answer 1

Effective Sept 1 2010
Ontario gov making changes to auto insurance
Goal: Increase options for consumer

Question 2

What changes did FSCO make regarding Medical, Rehab and Attendant Care benefits?

Answer 2

• Reduced standard med and rehab benefits for non-CAT injuries to 50K. Optional buy-up 100K or 1100K
• Reduced standard attendant care benefits for non-CAT injuries to 36K. Optional buy-up of 72K or 1072K
• Standard med, rehab, and attendant care benefits remain at 1M for CAT injuries. Optional buy-up 1M

Question 3

What changes did FSCO make regarding the Caregiver benefit?

Answer 3

• Caregiver benefit = $250/week for the first dependent + $50 for each additional
• Standard “only” for CAT injuries
• Optional buy-up for all injuries

Question 4

What changes did FSCO make regarding Housekeeping & Home Maintenance Expenses?

Answer 4

• Housekeeping = $100/week
• Standard “only” for CAT injuries
• Optional buy-up for all injuries

Question 5

What changes did FSCO make regarding the Income Replacement benefit?

Answer 5

• Income replacement reduced from 80% to 70% of gross income, max $400/week
• Weekly limit can be $600, $800, $1000 per week

Question 6

What changes did FSCO make regarding the Dependent Care benefit?

Answer 6

• No change to standard coverage
• Optional increase their benefit up to $75/week for the first dependent and $25 per for each additional dependent to a maximum $150/week

Question 7

What changes did FSCO make regarding Death and Funeral benefits?

Answer 7

• Standard is 25K lump sum to eligible spouse, 10K to each dependent, and 6K max for funeral benefits
• Optional buy-up: 50K lump sum to eligible spouse, 20K to each dependent, and a 8K max for funeral benefits

Question 8

What changes did FSCO make regarding the Indexation benefit?

Answer 8

• No change to standard coverage

* Optional increase to annual adj according to Consumer Price Index for Canada

Question 9

How does an accident occurring on or after September 1, 2010 affect premium based on the FSCO reforms?

Answer 9

• Accidents where you are 25% or less at-fault no longer affect premium (accidents occuring after Sept 1, 2010)

Question 10

How has the reform affected the following:
Credit Scoring
Deductible paid on Fatal Accidents
Dispute on Write-off Value
Minor Injury Awards
Benefit Statements
Rented Autos

Answer 10

• Prohibiting the use of credit scores for insurer quotes
• Deductible that was applied to court awards for fatal accidents has been eliminated
• Appraisal process available if auto is written off and you don’t agree with the settlement value
• Minor med/rehab accident benefits are limited to 3.5K
• Insurers must be more transparent and send out benefit statements with paid and outstanding balances for med, rehab, and attendant care benefits
• Coverage has been extended to rented autos with gross vehicle weight rating > 4500 kg, if for personal use and rented up to 7 days

Question 11

How have the FSCO reforms affected deductibles?

Answer 11

• Option to reduce Tort deductible to 20K from 30K
• Option to reduce Family Law Act claims deductible to 10K from 15K
• DCPD deductible options of 500, 300, 0