(Consolidated up to 187/2006)

ALBERTA REGULATION 179/2005

Insurance Act

AUTOMOBILE INSURANCE RATE
BOARD FEES REGULATION

Table of Contents

                1       Definitions

                2       Authority to charge fees

                3       Calculation of basic fees

                4       Other fees

                5       Application

                6       Expiry

Definitions

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.

(2)  The Board shall, on or before August 1 of each year, send a notice to each insurer indicating the amount of the basic fee payable under section 3 for that year and indicating the date by which the amount is due.

(3)  For the 2005 fiscal year, the notice shall be sent on or before September 30, 2005.

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
       C

where

                                  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.

(2)  Where an insurer who wrote direct premiums for automobile insurance in the previous calendar year is not set out in the most recently published Annual Report, the Board may estimate the amount of the fee payable by that insurer based on information available to the Board.

(3)  An insurer referred to in subsection (2) may within 30 days of receiving notice of the amount determined in accordance with subsection (2) request the Board to review the amount of the fee and the insurer may provide to the Board such further information the insurer considers necessary.

(4)  After reviewing the insurer’s request and further information, the Board shall confirm or readjust the amount of the fee.

(5)  No fee is payable by an insurer under this section if the amount calculated for that insurer is less than $100.

Other fees

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).

(2)  On making an application for an approval or review under subsection (1), an insurer shall include with the application an amount of money estimated by the Board to be the cost of engaging the services of an actuary for the purpose of carrying out the approval or review.

(3)  On completion of the approval or the review, the Board shall provide the insurer with a statement as to the actual cost of engaging the services of the actuary for the purpose of carrying out the approval or review.

(4)  If the amount paid under subsection (2) is insufficient to cover the actual cost of engaging the services of an actuary, the insurer shall pay the Board the amount owing within 30 days of receiving a notice of the amount owing, and if the amount paid under subsection (2) exceeds the actual cost of engaging the services of the actuary, the Board shall refund the difference within 30 days of making that determination.

(5)  On application by an insurer, the Board may, in its discretion, waive or reduce the fee under subsection (1) or 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).

AR 179/2005 s4;187/2006

Application

5   This Regulation applies for the 2005 fiscal year and subsequent fiscal years.

Expiry

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.