FSCO.TECHNOTES Flashcards

1
Q

what classes of auto insurance does FSCO’s Tech Notes bulletin apply to?

A

non-fleet automobile insurance on
* Ontario Automobile Policy (OAP 1)
* Ontario Driver’s Policy (OPF 2)

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2
Q

identify the 5 categories of filing guidelines in FSCO’s Tech notes bulletin

A
  • PPA Filing Guidelines – Major:
    → used when an insurer is initially entering the private passenger automobile insurance market
    ..or..
    → when changing existing automobile insurance rates but the changes proposed do not meet the criteria for the Simplified Filing Guidelines.
  • PPA Filing Guidelines - Simplified
  • PPA Filing Guidelines – CLEAR Simplified
  • Other Than PPA Guidelines - Major
  • Other than PPA - Minor
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3
Q

identify legislative requirements for non-fleet auto rate filings in ON

A
  • just and reasonable
  • solvency of insurer cannot be impaired
  • not be excessive in relation to the financial circumstances of the insurer
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4
Q

identify legislative requirements for non-fleet auto risk classification in ON

A
  • just and reasonable
  • predictive of risk
  • distinguish fairly between risks
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5
Q

identify 5 items of required information in an Ontario major rate filing

A
  1. Loss Data
  2. Loss Development
  3. Loss Trend
  4. On-Level Premium
  5. Indicated Rate Changes and Proposed Rate Changes
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6
Q

identify 2 requirements for loss data in an Ontario rate filing

A
  • must be specific to Ontario
  • must be at the major sub-coverage level
    (Valuation data for loss reserving purposes may not satisfy this requirement.)
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7
Q

what conditions must be met if an Ontario insurer is proposing to make territorial definition changes?

A
  • Ontario ≤ 55 territories, City of Toronto ≤ 10 territories
  • all territories must be contiguous (you can’t have a territory that isn’t touching the others)
  • new territories require 3 years of insurer data and 2,500 annualized average vehicles over the period
  • new adjoining territories do not vary by more than +/-10%
  • territory definitions are the same for all coverages
  • large claims should be capped in establishing territorial rates
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8
Q

once a new discount is approved, how long must an ON insurer continue to offer the discount and why?

A

3 years - to ensure stability in the market before the insurer can withdraw it from its risk classification system

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9
Q

when is rate capping in ON not permitted?

A
  • base rate changes only
  • broker portfolio transfers or acquisitions
  • premium decreases (negative capping)
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