O.C. 292/2008

July 9, 2008

A.R. 118/2008

July 10, 2008


            The Lieutenant Governor in Council makes the Automobile Insurance Rate Board Fees Amendment Regulation set out in the attached Appendix.

For Information only

Recommended by:            Minister of Finance and Enterprise

Authority:                             Insurance Act
                                                (section 653)


APPENDIX

Insurance Act

AUTOMOBILE INSURANCE RATE BOARD
FEES AMENDMENT REGULATION

1   The Automobile Insurance Rate Board Fees Regulation (AR 179/2005) is amended by this Regulation.

 

2   Section 1 is repealed and the following is substituted:

Definitions

1   In this Regulation,

                                          (a)    “Act” means the Insurance Act;

                                          (b)    “Board” means the Automobile Insurance Rate Board;

                                          (c)    “insurer” means an insurer that holds a licence authorizing the insurer to undertake the class of automobile insurance.

 

3   Section 2 is amended

                                 (a)    in subsection (2) by striking out “August” and substituting “September”;

                                 (b)    by repealing subsection (3).

 

4   Section 3 is repealed and the following is substituted:

Calculation of basic fees

3(1)  Subject to subsection (2), 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
       C

where

                                              is the amount of the fee payable by the insurer;

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

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

                                               is the Board’s annual budget approved by the Minister for the fiscal year, less the estimated amount budgeted for costs recovered under section 4, plus the amount by which the fees collected from all insurers in the previous fiscal year were less than the Board’s expenditures for that same year or minus the amount by which the fees collected from all insurers in the previous fiscal year exceeded the Board’s expenditures for that same year, as the case may be.

(2)  No fee is payable by an insurer under this section if the amount calculated for that insurer is less than $500.

 

5   Section 4 is repealed and the following is substituted:

Other costs

4(1)  The Board may, in respect of each application for an approval or review referred to in the following, charge an 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 the insurer’s rating programs for all types of vehicles;

                                          (b)    the approval of rating programs 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).

(2)  On application by an insurer, the Board may, in its discretion, reduce the costs charged to the insurer for engaging the services of an actuary for the purpose of carrying out an approval or review under subsection (1).