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AR 199/2009 RECOVERY OF ADMINISTRATION COSTS REGULATION

(Consolidated up to 39/2016)

ALBERTA REGULATION 199/2009

Insurance Act

RECOVERY OF ADMINISTRATION COSTS REGULATION

Table of Contents

                1      Definitions

                2      Authority to charge administration fees

                3      Calculation of administration fees

                4      Application


                5      Expiry

Definitions

1   In this Regulation,

                               (a)    “Act” means the Insurance Act;

                              (b)    “insurer” means an insurer that is licensed under section 19(1) or (2) of the Act and includes a person who exchanges with other persons reciprocal contracts of indemnity or inter‑insurance as part of a reciprocal insurance exchange;

                               (c)    “Superintendent” means the Superintendent of Insurance.

Authority to charge administration fees

2(1)  Each fiscal year the Superintendent is authorized to charge insurers an administration fee to be used to recover the costs incurred in the administration of the Act and the regulations for that year.

(2)  The Superintendent shall, on or before September 1 of each year, send a notice to each insurer indicating the amount of the administration fee payable under section 3 for the current fiscal year and indicating the date by which the amount is due.

Calculation of administration fees

3(1)  Subject to subsection (2), the administration fee payable by each insurer in respect of a fiscal year shall be calculated in accordance with the following formula:

A = B x (D-E-F)
       C

where

                               A      is the amount of the administration fee payable by the insurer;

                               B      is the insurer’s total direct premiums written by the insurer in the previous calendar year, as reported under sections 44 and 46 of the Act;

                               C      is the total of the direct premiums written for all insurers in the previous calendar year, as reported under sections 44 and 46 of the Act;

                               D      is the annual budget approved by the Minister for the administration of the Act and the regulations for the fiscal year;

                               E      is 1/2 of the amount of the licence fees paid by all insurers for the current calendar year;

                               F      is, with respect to administration fees payable for the 2010 and subsequent fiscal years, the amount by which the administration fees collected from all insurers for the previous fiscal year exceed the actual expenditures for the administration of the Act and the regulations for that same year.

(2)  No fee is payable by an insurer under this section if the amount calculated for that insurer is less than $250.

Application

4   This Regulation applies for the 2009 fiscal year and subsequent fiscal years.

Expiry

5   For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on April 30, 2018.

AR 199/2009 s5;39/2016