FSCO.PPA Flashcards
Identify the 6 prohibited risk classification elements in ON regulations.
Claims where fault ≤ 25% – Credit history Occupation (some exceptions) Net worth Employment history Salary
Assess whether the following discount complies with ON regulations:
- Retiree discount
- Multi-line discount
- Good credit score discount
- Yes, required by ON regulations
- Yes, but only if they do not vary by property product.
- No, prohibited
Identify the 2 types of regulatory approval in ON.
-
prior approval
(major requirements, simplified guidelines) -
file & use
(major requirements, minor requirements)
Describe FSCO prior approval
For prior approval, FSCO must approve the following before rates can be used:
• rates
• rate changes
• risk classification
Examples where prior approval can be used:
• PPA on OAP1 (Private Passenger Auto written using the standard Ontario Auto Policy 1)
• FA (Facility Association)
Expedited approval is a type of prior approval with approval in 30 days
Describe file & use.
For file & use, the insurer must file:
* rates
* rate changes
* risk classificationTHEN
regulators have 30 days to approve
otherwise rates can be used without approval
Examples:
* other than PPA
* commercial auto
* endorsements
* FA is excluded (not eligible for expedited approval)
Describe the UDAP (Unfair or Deceptive Acts or Practices) requirement regarding rate levels among affiliates
It is unfair or deceptive if the insurer fails to provide the lowest rate among all affiliates
What is OCPF-44R coverage
- coverage for ‘underinsured MOTORIST’ (as opposed to ‘uninsured AUTO’)
- it is the difference between (your TPL limit) & (at-fault driver’s TPL limit)
Identify 5 regulatory requirements when changing territory factors in a major filing.
REBASE current, indicated, proposed territorial relativities
CALCULATE indicated change, proposed change
CHECK:
- indicated and proposed changes have the same sign
- proposed RC (%) < indicated RC (%)
- magnitude proposed change btwn (-10%, 10%)
Identify the required designation, timing and 4 filing items for officer certification
on major filing.
- Designation: CEO, CFO or Chief Agent in Canada
- Timing: Always required
- Includes:
1. Effective dates (new and renewal business)
2. Guidelines (must certify compliance)
3. Info/data (certify accuracy & completeness)
4. Rates are reasonable, nor unfairly discriminatory and do not impair solvency
Identify the required designation, timing and 6 filing items required for actuarial certification
in major filings.
- Designation: FCIA
- Timing: when there are rate changes or new LOB
- Includes:
1. Effective dates (new & renewal business)
2. Vehicle classification system
3. That Actuary has been authorized by insurer
4. That data is reliable & sufficient
5. That AAP was used
6. That risk classification system is reasonable
Briefly explain what info is generally required in a rate filing.
- All steps for rate changes
- Trace steps from raw data to final rates
- No specific methodology mandated by FSCO
- Include RSP as if never ceded, exclude reinsurance and FA