September 8, 2005
The Lieutenant Governor in Council makes the Automobile Insurance Rate Board Fees Regulation set out in the attached Appendix.
For Information only
Recommended by: Minister of Finance
Authority: Insurance Act
AUTOMOBILE INSURANCE RATE
BOARD FEES REGULATION
Table of Contents
2 Authority to charge fees
3 Calculation of basic fees
4 Other fees
1 In this Regulation,
(a) "Annual Report" means the Annual Report of the Superintendent of Insurance;
(b) "Board" means the Automobile Insurance Rate Board;
(c) "insurer" means an insurer that holds a licence authorizing the insurer to undertake automobile insurance.
Authority to charge fees
2(1) Each fiscal year the Board is authorized to charge insurers fees to be used to pay for the Board's operations and for matters relating to the Board's administration for that year.
Calculation of basic fees
3(1) Subject to subsections (2) and (5), the basic fee payable by each insurer in respect of a year shall be calculated in accordance with the following formula:
A = B x D
A is the amount of the fee payable by the insurer;
B is the insurer's total direct premiums written for automobile insurance by the insurer, as set out in the most recently published Annual Report;
C is the total of the direct premiums written for automobile insurance for all insurers, as set out in the most recently published Annual Report;
D is the Board's annual budget approved by the Minister for the fiscal year less the estimated amount budgeted for fees paid and costs recovered under section 4.
4(1) In addition to the basic fee payable under section 3, the Board may charge an insurer a fee of $500 for each application for an approval or review referred to in the following and the Board may charge the insurer the actual costs of engaging the services of an actuary for the purpose of carrying out the approval or review:
(a) the approval of rating programs for basic coverage for vehicles other than private passenger vehicles;
(b) the approval of rating programs for basic coverage with respect to insurers licensed in the current fiscal year or for insurers licensed in the previous fiscal year whose rating program was not approved in the previous fiscal year;
(c) reviews under section 6 of the Automobile Insurance Premiums Regulation (AR 124/2004).
5 This Regulation applies for the 2005 fiscal year and subsequent fiscal years.
6 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 August 31, 2015.