FSCO.TechNotes Flashcards
Identify the 2 classes of insurance FSCO Tech Notes apply to
- Ontario Automobile Policy (OAP1)
- Ontario Driver’s Policy (OPF2)
Identify 5 categories of filing guidelines in FSCO Tech Notes Bulletin
- Major PPA
- Simplified PPA
- CLEAR Simplified PPA
- Major Other Than PPA
- Minor Other Than PPA
When are Major PPA Filing Guidelines required?
- When an insurer is initially entering the private passenger automobile insurance market
OR - When changing existing automobile insurance rates but proposed changes do not meet criteria for simplified filing guidelines
Identify 3 legislative requirements for non-fleet auto rate filing in ON
- Just & reasonable
- Solvency of insurer cannot be impaired
- Not be excessive in relation to the financial circumstances of the insurer
Identify 3 legislative requirements for non-fleet auto risk classification in ON
- Just & reasonable
- Predictive of risk
- Distinguish fairly between risks
Identify 5 required items in an ON major rate filing
- Loss Data
- On-Level Premiums
- Expenses
- Indicated & Proposed Rate Changes
- New Discounts/Surcharges or Differentials
Identify 2 requirements for loss data in ON major rate filing
- Must be specific to Ontario
- Must be at the major sub-coverage level
For large loss provision, how long should be the period used?
No specific number of years but should be long enough to minimize statistical variations
Identify 4 requirements if proposing to change territorial definitions.
- No more than 55 territories for ON and 10 for Toronto
- All territories must be contiguous (touching eachother)
- If new territories, require 3 years of insurer data and 2500 annualized average vehicles over the period
- If new adjoining territories, must not vary by more then +/- 10%
- Territory definition is the same for all coverages
- Large claims should be capped in establishing territorial rates
Identify 4 items that should be included in an initial UBIP filing.
- What driving behaviours are being are being measured (acceleration, speed, distance)
- How is data measured
(frequency, occurence, thresholds) - How is data normalized and categorized for rating purposes
(total occurences, average) - Loss data to support UBI discounts
(claim severity, claim frequency, loss costs)
Identify 3 UBIP costs in rate filing
- Startup cost of the UBI program
Ongoing expenses for: - Data transfer & analysis
- Marketing
- Third-party provider contracts
Identify 3 scenarios where capping is not permitted in ON
- When changing base rates only
- When rating broker portfolio transfers or acquisitions
- Premium decreases (negative capping)