O.C. 184/2005

A.R. 55/2005

April 19, 2005

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

For Information only

Recommended by: Minister of Finance

Authority: Insurance Act
(section 656)

APPENDIX

Insurance Act

AUTOMOBILE INSURANCE PREMIUMS
AMENDMENT REGULATION

1   The Automobile Insurance Premiums Regulation (AR 124/2004) is amended by this Regulation.

2   Section 3(2) is repealed and the following is substituted:

(2)  The maximum market premium for each private passenger vehicle of the policyholder is, subject to subsection (3),

(a) during the period October 1, 2004 to June 30, 2005, the premium for basic coverage calculated

(i) in accordance with the freeze order, less 5%;

(ii) in the case of a new insurer offering basic coverage for private passenger vehicles, in accordance with the rates set by the Board under section 10;

(b) during the period July 1, 2005 to October 31, 2005, the premium for basic coverage calculated

(i) in accordance with the freeze order, less 11%;

(ii) in the case of an insurer whose rates under the insurer’s rating program have been adjusted under section 6, in accordance with those adjusted rates;

(iii) in the case of a new insurer offering basic coverage for private passenger vehicles, in accordance with the rates set by the Board under section 10;

(c) on and after November 1, 2005, the premium for basic coverage calculated in accordance with sections 4, 5, 6 and 7 or, in the case of a new insurer, in accordance with the rates set by the Board under section 10 and subsequently in accordance with sections 4, 5, 6 and 7.

(2.1)  For the purposes of subsection (2)(c), in calculating the premium for basic coverage in accordance with sections 4, 5, 6 and 7, the reduction in the freeze order under subsection (2)(b) must be taken into account.

3   Section 4(4) and (5) are amended by striking out “October” and substituting “November”.

4   Section 5(1) is amended by striking out “October” and substituting “November”.

5   Section 6(1) is amended by striking out “October 1” and substituting “May 1”.

6   Section 7 is amended by striking out “October” wherever it occurs and substituting “November”.

7   Section 8(1) is repealed and the following is substituted:

Setting of premium

8(1)  For the purposes of section 656 of the Act, the premium set for basic coverage for private passenger vehicles

(a) for the period October 1, 2004 to June 30, 2005 is the premium calculated in accordance with the freeze order, less 5%, and

(b) for the period July 1, 2005 to October 31, 2005 is the premium calculated in accordance with the freeze order, less 11%.

8   Schedule 3 is amended by striking out “October” wherever it occurs and substituting “November”.

9(1)  In this section, “freeze order” means Order in Council numbered O.C. 592/2003, as amended from time to time.

(2)  The freeze order is amended in section 10(1) by striking out “September 30” and substituting “October 31”.