Grid

Question 1

what coverages does Grid apply to?

Answer 1

It applies to only basic auto insurance coverage = TPL, accident benefits, & DCPD

Question 2

what coverages do insurance companies determine the rates for?

Answer 2

Insurance companies control the premium/rates for additional coverages such as comp, collision and specified perils, and DCPD.

Question 3

max discount is what?

Answer 3

60% which = -15

Question 3

new drivers enter the Grid at 0, unless they take a drivers training course then they enter at what grid level?

Answer 3

-2 and they remain there until licensed for a full 3 years.

Question 3

each negative step down on the Grid means what?

Answer 3

That you get a discount off the base rate

Question 4

Each at fault claim within the last 6 years increases your Grid rate by how much?

Answer 4

by 5 steps

Question 5

Each positive step = what

Answer 5

A surcharge to the base rate

Question 6

what is the max surcharge limit?

Answer 6

There is no limit

Question 7

What is a Drivers Relevant Date?

Answer 7

It’s the date the driver was entered onto the Grid system in Alberta

Question 8

What is a determining question for a drivers Relevant Date?

Answer 8

Did the driver have a policy in their name or were they listed as a operator on a PPV insurance policy?

Question 9

What determines when a drivers relevant date will be?

Answer 9

It will be the 1st date they became a listed operator on a PPV insurance policy in AB, unless they had been insured prior to Oct 1, 2004 then their relevant date would be their regular renewal date from when they first had insurance in AB but in the year 2004 instead.

Question 10

If a driver moved to AB from another province when will their relevant date be?

Answer 10

It will be the first date they have had insurance in AB

Question 11

If a driver was listed as an operator on someone’s PPV policy then what letter is required to confirm the dates?

Answer 11

Claims experience letter

Question 12

If no claims experience letter is provided to confirm the driver was listed on someone else’s policy then what is used for the relevant date?

Answer 12

The first date of their own policy is to be used.

Question 13

Factors for calculating Grid are …

Answer 13

1. The level of TPL coverage ( Hubs min standard is 2 mil)
2. Where you live/ territory
   3.The date your class 5 DL was received.
3. The length of a drivers suspensions/cancellations within the last 15 years.
4. # of at fault claims within the last 6 years and how many of those had occurred within the last 3 years.
5. # of convictions which includes minor, major, and criminal code convictions. Minor and Major being within the last 3 years and criminal within the last 4 years.

Question 14

what coverages does the AIRB set the rates for?

Answer 14

They set the rates for TPL and accident benefits

Question 14

In which scenarios do we need to go to a specialty market?

Answer 14

1. 3 at fault claims within the last 6 years.
2. 5 or more minor convictions in the last 3 years.
3. 2 or more serious convictions in the last 3 years.
4. 1 or more criminal conviction in the last 3 years
5. Driver was convicted of 1 or more fraud offenses relating to insurance in the last 10 years.

Question 15

If a driver has any suspensions or cancellations what do you do to determine their driving history in order to also determine their Grid level?

Answer 15

You need to subtract any time that their license was suspended/cancelled. You can only round to a full year.

Question 16

What is the drivers experience?

Answer 16

The number of years licensed without any suspensions.