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AR 89/2012 CROWN'S RIGHT OF RECOVERY (PRESIDENT OF TREASURY BOARD AND MINISTER OF FINANCE) REGULATION

(Consolidated up to 45/2017)

ALBERTA REGULATION 89/2012

Crown’s Right of Recovery Act

CROWN’S RIGHT OF RECOVERY (PRESIDENT OF TREASURY
BOARD AND MINISTER OF FINANCE) REGULATION

Table of Contents

                1      Interpretation

                2      Calculation of assessment factors

                3      Variables in formulas

                4      Payment due date

                5      Penalty

                6      Interim payment of penalty

                7      Interest

                8      Repeal

              10      Coming into force

Interpretation

1(1)  In this Regulation,

                               (a)    “Act” means the Crown’s Right of Recovery Act;

                              (b)    “assessment factor year” means the calendar year in respect of which an assessment factor is or will be established;


                               (c)    “total premiums” means, in respect of a calendar year, the total premiums written in the calendar year for third party liability insurance, as determined by the President of Treasury Board and Minister of Finance, by automobile insurers licensed to provide automobile insurance under the Insurance Act for all or a portion of the calendar year.

(2)  The definitions in section 1 of the Act apply to this Regulation.

Calculation of assessment factors

2   The President of Treasury Board and Minister of Finance shall establish the assessment factor in respect of any given calendar year for the purposes of Division 2 of Part 1 of the Act by using the formula

                                       assessment factor (for the   =  A 
assessment factor year)           B 

rounded off to 4 decimal places and then converted to a percentage.

Variables in formulas

3   For the purposes of calculating an assessment factor under section 2,

                               (a)    A is the estimate by the Minister of Health of the Crown’s cost of health services referred to in section 22(2) of the Act for the assessment factor year plus the aggregate assessment for the 2nd calendar year preceding the assessment factor year less the amount collected by the President of Treasury Board and Minister of Finance under this Regulation for the 2nd calendar year preceding the assessment factor year;

                              (b)    B is the projected total premiums for the assessment factor year calculated in accordance with the formula

B = 2[C(1-D)] + E

where

                                         C    is the average of the changes in total premiums between

                                                (i)    the 2nd and 3rd calendar years preceding the assessment factor year,

                                               (ii)    the 3rd and 4th calendar years preceding the assessment factor year, and

                                             (iii)    the 4th and 5th calendar years preceding the assessment factor year;

                                         D    is an adjustment factor established by the President of Treasury Board and Minister of Finance for the assessment factor year;

                                         E    is the total premiums for the 2nd calendar year preceding the assessment factor year.

Payment due date

4   An automobile insurer who is required to pay an amount under section 26 of the Act in respect of a calendar year shall pay the amount to the President of Treasury Board and Minister of Finance on or before March 15 of the following year.

Penalty

5   An automobile insurer who fails to file a report for a calendar year as required by section 27 of the Act shall pay a penalty to the President of Treasury Board and Minister of Finance in an amount that is the greater of

                               (a)    $25 per day for each day of default, and

                              (b)    the sum of

                                        (i)    5% of the unpaid amount, if any, required to be paid under section 26 of the Act on the required filing date of March 15, and

                                      (ii)    1% of the unpaid amount, if any, required to be paid under section 26 of the Act on the 15th day of each subsequent month in which the report remains unfiled.

Interim payment of penalty

6(1)  The President of Treasury Board and Minister of Finance may, in respect of an automobile insurer who has failed to file a report for a calendar year as required by section 27 of the Act, send a notice to the insurer requiring the insurer to pay a portion of the penalty referred to in section 5 with interest calculated to a specified day.

(2)  The amount of the penalty in the notice is calculated in accordance with section 5, except that the amount calculated under section 5(b)(ii) is zero.

(3)  An automobile insurer who receives a notice referred to in subsection (1) shall immediately pay the amount under the notice to the President of Treasury Board and Minister of Finance.

(4)  Any amount paid by an automobile insurer as a result of a notice under this section shall be subtracted from the penalty under section 5 and interest on the penalty calculated after the automobile insurer files a report as required by section 27 of the Act.

Interest

7(1)  Interest on an amount that an automobile insurer is required to pay under section 26 of the Act in respect of a year accrues on any unpaid portion of the amount starting on March 16 of the following year.

(2)  Interest on a penalty referred to in section 27(3) of the Act that arises because an automobile insurer did not file a report on or before March 15 of a year starts to accrue on March 16 of that year.

(3)  The interest referred to in subsections (1) and (2) is calculated daily and the interest is compounded daily.

(4)  The rate of the interest referred to in subsections (1) and (2) is determined for each quarter of the year and is the sum of

                               (a)    the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage where the mean is not a whole percentage, of the weekly average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately 3 months after their date of issue and that are sold at a weekly auction of Government of Canada Treasury Bills during the first month of the preceding quarter, and

                              (b)    3.5%.

Repeal

8   The Crown’s Right of Recovery (Minister of Finance) Regulation (AR 219/96) is repealed.

9   Repealed AR 45/2017 s2.

Coming into force

10   This Regulation comes into force on the coming into force of section 40(3) of the Crown’s Right of Recovery Act.