ICBC - Affordable Auto Insurance Flashcards

1
Q

What is ICBC (Insurance Corporation of British Columbia)?

A

A provincial Crown corporation, owned and operated by the province).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is ICBC’s role regarding mandatory basic auto insurance in BC?

A

It is the SOLE provider of mandatory basic auto insurance called BASIC AUTOPLAN.
- provides 5 coverages: TPL, UM, AB, hitandrun, inverse liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How is the additional auto coverage available in BC?

A
  • by ICBC’s package called AUTOPLAN OPTIONAL

- by the private market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Identify challenges and target outcomes to BC auto insurance. (5)

A
  • increasing FREQUENCY of accidents -> change high-risk driving behaviours
  • CLAIMS-PER-ACCIDENT is increasing -> change claimant behaviour by product redesign
  • SEVERITY of minor injuries is increasing -> change focus from cash to prompt medical care
  • PROPORTION of costs due to minor injuries is increasing -> cap pain and suffering, reduce legal costs
  • PREMIUMS don’t cover claim costs -> sustainable and affordable premiums
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Identify opportunities to address failing in BC auto insurance.

A
  1. increase road safety (by changing high-risk driving habits)
  2. redesign auto product
  3. interim measures by ICBC
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Identify special initiatives to increase road safety. (2)

A
  • camera at intersections

- automated speed enforcement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Identify specific items to address in BC auto product redesign. (3)

A
  • CAP pain and suffering for minor injuries
  • increase AB (no fault compensation) for wages and medical payments -> lower lawyer costs
  • increase PROPORTION of premiums paid out in benefits (currently on 58%)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Identify specific initiatives regarding interim measures in BC auto insurance. (3)

A
  • claims management improvements
  • non-insurance investments
  • change risk-rating model
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the key streams in implementing BC’s auto insurance reform? (4)

A
  • policy and legislative framework development
  • road safety
  • product redesign
  • interim measures
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the guiding principles of an effective auto insurance system for BC? (5)

A
Fair
Affordable
Sustainable
Efficient
Simple
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Describe the auto insurance coverage ‘inverse liability’.

A

Coverage in jurisdiction where local laws DON’t ALLOW CLAIMS against the person who caused the crash.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly