Part 3
Complaint Resolution
13 Definitions
14 Complaint to insurer
15 Complaint to General Insurance OmbudService
16 Application for arbitration
17 Referral to arbitration
18 Automobile Insurance Dispute Resolution Committee
Part 4
Transitional Provisions, Amendments,
Review and Coming into Force
19 Application of former Act
20 Transitional
21 Freeze order amended
22 Enforcement and Administration Regulation
23 Review
24 Coming into force
Schedules
Definitions
1 In this Regulation,
(a) “Act”
means the Insurance Act;
(b) “additional
coverage” has the same meaning as it has in section 652(a) of the Act;
(c) “adjust”
and “adjustment” mean increase or decrease;
(d) “application
for basic coverage” includes an application for renewal of basic coverage;
(e) “base
premium” means the premium determined under Schedule 3 for basic coverage for
12 months, or if for a period of less than 12 months, an amount prorated
accordingly;
(f) “basic
coverage” means insurance provided for under sections 627 and 629 of the Act;
(g) “Board”
means the Automobile Insurance Rate Board established under section 653 of the
Act;
(h) “freeze
order” means Order in Council numbered O.C. 592/2003, as amended from time
to time;
(i) “grid”
means the grid established by Schedule 2;
(j) “grid
step” means the location on the grid corresponding to a step indicated on the
grid;
(k) “insurer”
means, except in Part 2, an insurer who provides basic coverage for private
passenger vehicles;
(l) “maximum
market premium” means the premium calculated under section 3(2) for basic
coverage for 12 months, or if for a period of less than 12 months, an amount
prorated accordingly;
(m) “new
insurer” means an insurer referred to in section 10(1);
(n) “policyholder”,
except in section 2, means the person who holds a policy for basic coverage in
respect of a private passenger vehicle;
(o) “private
passenger vehicle” means a motor vehicle not weighing more than 4500 kg
that is used for
(i) pleasure,
(ii) driving to or from work or school, or
(iii) business purposes, including farming operations,
but does not include
(iv) a motorcycle, power bicycle or moped,
(v) a vehicle used for commercial purposes, including, but not
limited to,
(A) a vehicle used for transporting individuals
for compensation, delivery of goods, courier or messenger service, parcel
delivery, meal delivery or driver training,
(B) a vehicle rated under a fleet formula,
(C) a short‑term lease or rental vehicle,
(D) a funeral vehicle, or
(E) a vehicle held for sale or used for
demonstration or testing,
(vi) an emergency vehicle as defined in section 1(1)(m) of the Traffic
Safety Act,
(vii) a recreational vehicle,
(viii) an antique vehicle registered under the Traffic Safety Act
as an antique vehicle, or
(ix) an all terrain vehicle, a snow vehicle, a miniature motor vehicle
or any other similar off‑highway vehicle;
(p) “rates”,
when used in relation to a rating program, means the premiums in respect of the
rating variables under the rating program that are used to determine the
premium to be charged to or collected from a policyholder;
(q) “rating
program” means the rules, criteria, policies or guidelines of any nature,
including rates, used or adopted by an insurer to determine the premiums for
either basic or additional coverage, as applicable, to be charged to or
collected from a policyholder;
(r) “rating
variable” means a class of risk for which a rate under a rating program is
determined.
Part 1
Refunds, Premiums for Basic
Coverage and Adjustments
Refunds of premiums for
basic coverage
2(1) In
this section, “policyholder” means a person who holds a policy for basic coverage
in respect of a private passenger vehicle on October 1, 2004.
(2) An insurer must refund to its
policyholders with respect to each private passenger vehicle insured under the
policy an amount determined in accordance with the following formulas, whichever
amount is greater:
(a) R = (A ‑ B) x C
365
(b) R = (A x C) x 5%
365
where
R means the refund to be provided to the policyholder in respect of
the private passenger vehicle;
A means the annualized premium of the policyholder for basic
coverage in respect of the private passenger vehicle as of October 1, 2004;
B means the grid premium in respect of the private passenger
vehicle determined under Schedule 1, section 6(2);
C means the number of days in the period beginning on October 1,
2004 and ending on the day the basic coverage in respect of the private
passenger vehicle expires.
(3) Notwithstanding subsection (2), if
the policyholder is paying a premium in instalments,
(a)
the refund payable under subsection (2) must be prorated with respect to the
premium already paid, and
(b) for
the portion of the premium unpaid, the insurer must, in accordance with
subsection (2), reduce the amount payable, prorated accordingly.
(4) Any refund exceeding $10 to which a
policyholder is entitled under this section must be provided to the
policyholder by January 31, 2005.
(5) Refunds of $10 or less must be
provided to the policyholder at the request of the policyholder.
(6) A policyholder is not entitled to a
refund under this section in respect of a private passenger vehicle if the
premium for that vehicle includes an amount that takes into account a criminal
code conviction as defined in Schedule 4.
Maximum premium for
basic coverage
3(1) With
respect to basic coverage for a private passenger vehicle coming into effect or
renewed on or after October 1, 2004, no insurer may charge or collect a premium
of more than
(a) the
maximum market premium, or
(b) the
grid premium determined under Schedule 1, section 6(2),
whichever is less.
(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) Notwithstanding section 4 of the
freeze order and notwithstanding that the maximum market premium with respect
to basic coverage for a private passenger vehicle is lower than the grid
premium determined under Schedule 1, an insurer may charge the grid premium
determined under Schedule 1 if any one or more of the following apply in
respect of the relevant driver of the vehicle:
(a) the
relevant driver had 3 or more at‑fault claims during the preceding 6
years;
(b) the
relevant driver had 5 or more traffic safety convictions in the preceding 2
years;
(c) the
relevant driver had one or more criminal code convictions in the preceding 3
years;
(d) the
relevant driver had 2 or more serious traffic safety convictions in the
preceding 3 years;
(e) the
relevant driver was convicted of one or more offences for fraud relating to
automobile insurance in the previous 10 years.
(4) Repealed AR 261/2006 s2.
(5) Terms
defined in Schedules 1 and 4 apply to subsection (3).
AR 124/2004
s3;183/2004;55/2005;261/2006
Industry‑wide
adjustments
4(1) On
or before August 1 in each year, the Board may adjust uniformly on an Alberta
automobile insurance industry‑wide basis, in accordance with the criteria
described in subsection (3), the rates under rating programs for basic coverage
of private passenger vehicles.
(2) In accordance with the procedures of
the Board, the Board may hear representations with respect to an adjustment
under this section.
(3) The criteria for an adjustment are
(a) the
Alberta automobile insurance industry‑wide loss costs, as that term is
understood by the Board, for basic coverage for private passenger vehicles;
(b) the
administrative expenses relating to basic coverage for private passenger
vehicles, on an Alberta automobile insurance industry‑wide basis, that
the Board considers appropriate to consider, which may include commissions,
federal, provincial and municipal taxes and general expenses, as reported in
the annual returns submitted by insurers to the Superintendent or a similar
regulatory authority in another jurisdiction;
(c) other
Alberta automobile insurance industry‑wide costs or expenses that the
Board considers appropriate relating to basic coverage for private passenger
vehicles;
(d) any
other criteria recommended by the Superintendent and approved by the Board.
(4) An adjustment under this section is
effective November 1 of the year in which the adjustment is made by the Board.
(5) Notwithstanding subsection (4), if
the Board increases the rates under a rating program for basic coverage in
respect of private passenger vehicles, the increases may be applied by an
insurer over a period of not more than 3 years commencing November 1 of the
year in which the adjustment is made by the Board.
(6) Information
about adjustments under subsection (1) must be made publicly available in a
manner satisfactory to the Superintendent.
AR 124/2004 s4;55/2005
Offsetting
adjustments to rating variables
5(1) On
and after November 1, 2005, an insurer may, by notice in writing to the Board,
increase, by up to 10% each, the rates for one or more of its rating variables
under a rating program for basic coverage for private passenger vehicles if the
increases in the rates are offset by reductions in the rates of one or more
other rating variables.
(2) In making an adjustment under
subsection (1), the insurer must ensure that the results of the adjustments are
revenue neutral to the insurer, determined on the policies for basic coverage
for private passenger vehicles in effect at a point in time not more than 60
days before a notice under subsection (1) is given.
(3) A notice under subsection (1) must
be accompanied with
(a) details
of the rates that would apply to each rating variable after applying the
adjustments, and
(b) an
analysis of how the adjustments are revenue neutral.
(4) An insurer may not, solely as a
result of the adjustments under subsection (1), charge a policyholder on renewal
a premium that on an annualized basis exceeds by more than 10% the premium
previously charged for basic coverage for private passenger vehicles by that
insurer to that policyholder.
(5) The
information provided under subsection (3) must be verified as accurate by
statutory declaration made by an officer of the insurer satisfactory to the
Board.
AR 124/2004 s5;55/2005
Review of insurer
rating program
6(1) On
application by an insurer to the Superintendent, on or after May 1, 2005, to
review the rating program of the insurer for basic coverage for private
passenger vehicles, the Superintendent may in his or her sole discretion direct
the Board to undertake such a review.
(2) On
completion of the review, the Board, if it determines that an adjustment is
appropriate, shall adjust the rates under the rating program for that insurer
for basic coverage for private passenger vehicles effective on a date specified
by the Board.
AR 124/2004 s6;55/2005
Equalization of rate
differentials
7(1) In
accordance with procedures established by the Superintendent under section 658
of the Act, and before July 1, 2005, or such later date approved by the
Superintendent, each insurer must file with the Board a plan to eliminate any
differential in rates in its rating programs for basic coverage identified by
the Superintendent with respect to private passenger vehicles.
(2) The
elimination of the differential referred to in subsection (1) must not commence
before November 1, 2005 and must be completed in accordance with the plan by
November 1, 2008 in instalments approved by the Superintendent.
AR 124/2004 s7;55/2005
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%.
(2) On the receipt of a notice under
section 5(1), a determination under section 6(2) and the filing of a plan under
section 7, premiums are deemed to have been set for the purpose of section 656
of the Act.
(3) Adjustments
under sections 4, 5, 6 and 7 are cumulative.
AR 124/2004 s8;55/2005
Extension of time
8.1 Where an insurer is unable to
comply with section 2 or 3 within the time determined by the section, the
Superintendent, if satisfied that the insurer had made every reasonable effort
to comply or that there were extenuating circumstances, may, subject to any
terms and conditions, extend the time by which the section is to be complied
with.
AR 183/2004 s3
Part 2
Additional Coverage, New Insurers and Information Requirements
Filing of additional
coverage
9(1) Every
insurer that offers additional coverage must file with the Board by February 1,
2005,
(a) its
rating program for additional coverage, and
(b) the
rates under the rating program applicable to each type of additional coverage.
(2) An insurer, by notice in writing to
the Board, may change its rating program for additional coverage or its rates
under the rating program for additional coverage.
(3) Any
proposed increase in rates for additional coverage made before the freeze order
ends has no effect until the freeze order has ended.
AR 124/2004 s9;183/2004
New insurers
10(1) An
insurer that, under the Act,
(a) becomes,
on or after October 1, 2004, licensed in Alberta to undertake the class of
automobile insurance and intends to offer basic coverage, or
(b) is
licensed in Alberta to undertake the class of automobile insurance and is not
offering basic coverage but, on or after October 1, 2004, intends to begin
offering basic coverage
must file with the
Board its rating program for basic coverage for private passenger vehicles and
the rates under the rating program.
(2) If the Board is satisfied with the
material, information, calculations and proposed rates filed with it under this
section, the Board must set the rates for basic coverage under the rating
program, effective on a date specified by the Board.
(3) An insurer that, under the Act,
(a) becomes,
on or after October 1, 2004, licensed in Alberta to undertake the class of
automobile insurance and intends to offer additional coverage, or
(b) is
licensed in Alberta to undertake the class of automobile insurance and is not
offering additional coverage but, on or after October 1, 2004, intends to begin
offering additional coverage
must comply with
section 9(1) as soon as practicable, and must comply with section 9(2).
Information required
11 For the purposes of carrying out any of
its functions under this Regulation, the Board may
(a) require
an insurer to provide any information to it that the Board considers necessary
if the information can reasonably be obtained taking into account the cost and
practicability of doing so;
(b) specify
the manner and form in which anything required to be filed or provided under
this Regulation or required to be provided under clause (a) must be provided to
the Board;
(c) require
anything filed with or provided to the Board to be verified as true and correct
by a statutory declaration made by an officer of the insurer satisfactory to
the Board.
Use of prescribed
forms
12 An insurer must use any form prescribed
by the Minister under section 803 of the Act.
Part 3
Complaint Resolution
Definitions
13 In this Part,
(a) “adverse
contractual action” has the same meaning as it has in section 613.1(1) of the
Act;
(b) “Committee”
means the Automobile Insurance Dispute Resolution Committee established by
section 18;
(c) “General
Insurance OmbudService” means the General Insurance OmbudService incorporated
under the Canada Corporations Act
(Canada);
(d) “policyholder”
includes an applicant for basic coverage or for renewal of basic coverage.
Complaint to insurer
14(1) If
a policyholder, with respect to a calculation, a determination, an action or an
incident occurring on or after this section comes into force,
(a) is
not satisfied with respect to the basis on which a premium for basic coverage
for a private passenger vehicle was determined under this Regulation, or
(b) considers
that an insurer, directly or indirectly, has with respect to insurance for
basic coverage taken an adverse contractual action contrary to section 613.1 of
the Act,
the policyholder may
make a complaint to the insurer.
(2) On receipt of the complaint, the
insurer must, in accordance with its policies and procedures and in accordance
with regulations made under section 511(2) of the Act, make an attempt in good
faith to resolve the policyholder’s complaint.
Complaint to General
Insurance OmbudService
15(1) If
a complaint is not resolved in accordance with section 14, the policyholder
may, in accordance with the policies and procedures of the General Insurance
OmbudService, apply to the General Insurance OmbudService to have the complaint
addressed.
(2) The policies and procedures of the
General Insurance OmbudService are, for the purposes of this section, those
policies and procedures agreed to by the Superintendent and the General
Insurance OmbudService.
(3) On completion of its process, the
General Insurance OmbudService must issue a written report to the policyholder
and to the insurer.
Application for arbitration
16(1) Within
30 days of receipt of a report from the General Insurance OmbudService, the
policyholder may apply to the Committee to refer a matter in dispute with an
insurer to arbitration.
(2) In accordance with its rules, the
Committee must
(a) identify
the matter in dispute,
(b) determine
whether
(i) a further settlement effort may resolve the issue and, if so,
facilitate that settlement effort,
(ii) the matter should be referred to arbitration, or
(iii) any further action should be taken
and
(c) notify
the policyholder and the insurer of its determination.
Referral to
arbitration
17(1) If
the Committee decides to refer a matter to arbitration it must, in accordance
with its rules,
(a) appoint
one or more arbitrators and identify the matter in dispute, and
(b) give
notice of the appointment to the insurer, the policyholder and the
Superintendent,
and the arbitration is
commenced on service of the notice.
(2) The Superintendent has the right to
attend and make representations in an arbitration.
(3) An arbitrator must make an award as
soon as practicable, but in any case within the time specified by the
Committee’s rules, and send copies to
(a) the
parties,
(b) the
Superintendent, and
(c) the
Committee.
(4) An arbitrator may make an award to
remedy the matter in dispute, but if damages are claimed the arbitrator may
award only compensatory damages.
(5) The Arbitration Act as
modified by this Part and the Committee’s rules apply to an arbitration
conducted under this Part.
(6) The fees and expenses of the
arbitrator and the arbitrator’s costs in conducting the arbitration shall be
set by the Superintendent.
Automobile Insurance
Dispute Resolution Committee
18(1) The
Automobile Insurance Dispute Resolution Committee is hereby established
composed of the one or more persons appointed to the Committee by the Minister.
(2) If the Committee has more than one
member,
(a) the
Minister must appoint a member as chair, and
(b) the
chair may designate one or more members of the Committee to act on the
Committee’s behalf.
(3) The Committee’s function is to seek
to resolve complaints under this Part as expeditiously and efficiently as
possible, and the Committee may
(a) establish
mediation or other dispute resolution processes to facilitate settlement of
disputes;
(b) establish,
subject to the approval of the Minister, rules for arbitration proceedings,
including
(i) providing for electronic hearings and documents‑only
hearings when the situation warrants,
(ii) specifying the time within which an award must be issued, subject
to extension of time by agreement of the parties,
(iii) determining responsibility for the payment of the arbitrator’s
fees, costs and expenses,
(iv) the appointment of arbitrators and the manner in which the
Committee decides the matter in dispute,
(v) the consolidation of several similar or related matters into one
reference to arbitration, or the reference of a representative dispute to
arbitration, and
(vi) generally, for the procedure and conduct of arbitration
proceedings;
(c) establish
a roster of suitably qualified individuals to act as arbitrators;
(d) establish
or adopt a code of ethical conduct for arbitrators.
(4) With the consent of the Minister, the Committee may delegate any
one or more of its functions to another person.
Part 4
Transitional Provisions,
Amendments, Review and
Coming into Force
Application of former
Act
19(1) Sections
652 to 660 of the Act, except section 654(a), as the Act read immediately
before being amended by the Insurance Amendment Act, 2003 (No. 2)
continue to apply to the insurance of automobiles other than private passenger
vehicles.
(2) For the purposes of the provisions
referred to in subsection (1), “Board” means the Alberta Automobile Insurance
Board until the Automobile Insurance Rate Board is established.
(3) On the establishment of the
Automobile Insurance Rate Board, that Board has the duties and functions of the
Alberta Automobile Insurance Board under the provisions of the Act referred to
in subsection (1).
Transitional
20 A classification of automobiles
(a) approved
by the Alberta Automobile Insurance Board, or
(b) filed
with the Alberta Automobile Insurance Board for 60 days that is neither
approved or disapproved by that Board
under section 656(1)
of the Act as it read immediately before section 15 of the Insurance
Amendment Act, 2003 (No. 2) came into force is deemed to be a rating
variable under this Regulation.
Freeze order amended
21 The freeze order is amended
(a) in
section 7 by striking out “automobiles”
and
substituting “new model
automobiles only”;
(b) in
section 10(1) by striking out “April
29,” and
substituting “September
30,”.
Enforcement and
Administration Regulation
22 The Enforcement and
Administration Regulation (AR 129/2001) is amended in the Schedule by
adding the following after item 5:
6 Automobile Insurance
Premiums Regulation
-
sections 2, 3, 5(4), 9, 10, 11 and 12.
Review
23 A review of this Regulation
must be completed no later than September 30, 2007.
AR 124/2004 s23;171/2006
Coming into force
24(1) This
Regulation, except section 21, comes into force on October 1, 2004.
(2) Section 21 comes into force on June
21, 2004.
Schedule 1
Calculation of Grid Premiums
Definitions
1(1) In this Schedule,
(a) “at‑fault
claim” means, in respect of liability described in section 627 of the Act or
under the same or equivalent coverage in any other jurisdiction, inside or
outside Canada,
(i) a claim paid in respect of that liability for which the driver is
wholly or partially at fault, and
(ii) a claim made in respect of which the insurer has reasonably
determined that a payment will or is likely to be made as a result of the
fault, whole or partial, of the driver,
(iii), (iv) repealed AR 261/2006 s3;
(b) “driver
training certificate” means a certificate evidencing successful completion of
an approved driver training course issued by a driver training school licensed
under the Traffic Safety Act or any other school outside Alberta
satisfactory to the insurer;
(c) “driving
experience” means the combined time within the previous 15 years before the
date on which the application for basic coverage is made during which a person
has had
(i) a valid operator’s licence in Canada, and
(ii) a valid operator’s licence in a country outside Canada, if the
person provides evidence satisfactory to the insurer,
but
does not include
(iii) the time during which the person held a learner’s operator’s
permit, and
(iv) a period of time during which the person’s operator’s licence was
suspended, cancelled or revoked;
(d) “highest
rated driver” means the person who has the highest percentage determined under
section 6(1)(b);
(e) “inexperienced
driver” means a driver who has less than 8 years’ driving experience;
(f) “occasional
driver” means an inexperienced driver referred to in section 4(4)(b);
(g) “relevant
date” means
(i) with respect to a driver referred to in section 5(2)(a), the most
recent date on or before September 30, 2004 on which the basic coverage came
into effect;
(ii) with respect to a driver referred to in section 5(2)(b), the date
the basic coverage comes into effect;
(h) “relevant
driver” means the person determined to be the relevant driver under section 4.
(2) For the purpose of determining
driving experience, if a driver obtains a driver training certificate before or
within 2 years after obtaining an operator’s licence, the driver is considered
to have 2 years’ driving experience, but is not considered to have 3 years’
driving experience until the person has actually had 3 years’ driving
experience.
(3) For the purpose of section 4(4), an
inexperienced driver is a principal driver of a private passenger vehicle if
the inexperienced driver will be driving the vehicle more than any other
driver.
Guidelines
2 The Superintendent may issue
guidelines respecting location and movements on the grid.
Steps to determine
grid premium
3 To determine a grid premium in
respect of a private passenger vehicle,
(a) the
relevant driver and any occasional driver of the private passenger vehicle must
be determined in accordance with section 4,
(b) the
relevant driver and any occasional driver of the private passenger vehicle must
each be located at a grid step in accordance with section 5, and
(c) the
grid steps at which the relevant driver and any occasional driver are located
must be converted to a dollar amount in accordance with section 6.
Relevant and
occasional drivers
4(1) The relevant driver and any occasional driver of a private
passenger vehicle must be determined in accordance with this section.
(2) If the policyholder has the same
number of private passenger vehicles as there are drivers of those vehicles,
each driver must be matched to a vehicle, and the drivers are the relevant
drivers in respect of the vehicles to which they are matched.
(3) If the policyholder has more private
passenger vehicles than there are drivers of those vehicles,
(a) each
driver must be matched to a vehicle, and
(b) for
those vehicles not matched with a driver, the drivers already matched must be
matched with the one or more unmatched vehicles, starting with the driver who
has the lowest percentage determined under section 6(1)(b),
and the drivers are
the relevant drivers in respect of the vehicles to which they are matched.
(4) If the policyholder has fewer
private passenger vehicles than there are drivers of those vehicles,
(a) the
highest rated drivers must be matched with the vehicles first, but an
inexperienced driver may not be matched unless the inexperienced driver is the
principal driver of one of the vehicles, and the drivers are the relevant
drivers in respect of the vehicles to which they are matched, and
(b) the
remaining drivers must not be matched with respect to any of the vehicles
unless the drivers are inexperienced drivers, in which case those inexperienced
drivers are considered to be occasional drivers.
(5) If the number of occasional drivers
is equal to or less than the number of passenger vehicles, each occasional
driver must be matched to a vehicle.
(6) If there are more occasional drivers
than there are vehicles, each occasional driver must be matched to a vehicle
starting with the occasional driver who is the highest rated driver, but in
no case may more than one occasional driver be matched in respect of the same
vehicle.
Locating the correct
grid step
5(1) A grid step must be established for each driver of a private
passenger vehicle.
(2) A grid step is first established for
a driver
(a) with
respect to a driver under basic coverage for a private passenger vehicle in
effect on September 30, 2004, as of the relevant date of that coverage, and
(b) if
clause (a) does not apply in respect of a driver, the first time a policy for
basic coverage for a private passenger vehicle comes into effect on or after
October 1, 2004 under which the driver is included.
(3) The grid step is first established
for a driver by moving down one grid step from grid step zero for each year of
driving experience then, if applicable, moving up 5 grid steps for each at‑fault
claim during the 6 years preceding the relevant date.
(4) An insurer must, with respect to
each subsequent application for basic coverage, make any necessary adjustments
to the driver’s location on the grid under subsections (5) and (6), starting
from the previous grid location for that person, whether or not location on the
grid was previously established by the same insurer.
(5) If, during the term of the policy
being renewed or replaced,
(a) the
driver had an at‑fault claim, the driver must be moved up 5 grid steps
for each at‑fault claim during the term of the policy, or
(b) the
driver did not have an at‑fault claim and is not already located at grid
step ‑15, the driver must be moved down one grid step for each full year
of driving experience with no at‑fault claims since the driver’s location
on the grid was last changed or, if it has never changed, since the driver’s
location on the grid was first established.
(6) Despite subsection (5), if no at‑fault
claims have been made for the 6 consecutive years of driving experience
immediately preceding the coming into effect or renewal of a policy for basic
coverage, and the driver is located higher than grid step zero, the driver must
be located on grid step zero.
(7) Every insurer must on the request of
another insurer provide to that insurer any information necessary to determine
a driver’s location on the grid, including information about his or her current
location on the grid.
Computation of grid
premium
6(1) After each driver is located on a grid step in accordance
with section 5, a premium must be determined for each driver as follows:
(a) determine
the base premium for the driver in accordance with Schedule 3;
(b) determine
the percentage by which to multiply the base premium in accordance with the
following formula:
P = A + (A x B)
where
P means the percentage by which to multiply the base premium of the
driver;
A means the percentage of the base premium for the grid step of the
driver determined in accordance with Schedule 2;
B means the percentage surcharge, if any, calculated in accordance
with Schedule 4;
(c) multiply
the base premium determined in clause (a) by the percentage determined in
clause (b).
(2) The
grid premium for basic coverage for a private passenger vehicle is the premium
for the relevant driver determined in subsection (1) plus 25% of the premium
determined in subsection (1) for the occasional driver, if any, of that
vehicle.
AR 124/2004
Sched.1;217/2004;261/2006
Schedule 2
Grid
Grid established
1 The following grid is
established for the purposes of this Regulation:
Grid steps
|
% for element A
of Schedule 1, section 6(1)
|
|
+16...............................
|
an increase of
23 percentage points for this and each subsequent step up the grid, computed
cumulatively (see section 2 of this Schedule)
|
|
+15...............................
|
338%
|
|
+14...............................
|
315%
|
|
+13...............................
|
293%
|
|
+12...............................
|
270%
|
|
+11...............................
|
248%
|
|
+10...............................
|
225%
|
|
+9.................................
|
210%
|
|
+8.................................
|
195%
|
|
+7.................................
|
180%
|
|
+6.................................
|
165%
|
|
+5.................................
|
150%
|
|
+4.................................
|
140%
|
|
+3.................................
|
130%
|
|
+2.................................
|
120%
|
|
+1.................................
|
110%
|
|
Grid
step zero
|
100%
|
|
‑1..................................
|
95%
|
|
‑2..................................
|
90%
|
|
‑3..................................
|
85%
|
|
‑4..................................
|
80%
|
|
‑5..................................
|
75%
|
|
‑6..................................
|
70%
|
|
‑7..................................
|
65%
|
|
‑8..................................
|
60%
|
|
‑9..................................
|
55%
|
|
‑10................................
|
50%
|
|
‑11................................
|
50%
|
|
‑12................................
|
50%
|
|
‑13................................
|
50%
|
|
‑14................................
|
50%
|
|
‑15................................
|
50%
|
Determining
percentage
2 Element A of Schedule 1,
section 6(1), is determined by identifying the percentage opposite the grid
step on which the relevant driver or occasional driver is located, except that
(a) at
grid step +16, the percentage is 23 percentage points more than the percentage
opposite grid step +15, and
(b) at
each step higher than +16, the percentage is to be increased by 23 percentage
points more than the percentage for the preceding grid step.
Schedule 3
Base Premium Calculation
Definitions
1 In this Schedule,
(a) “Calgary
territory” means the City of Calgary;
(b) “Edmonton
territory” means Townships 52, 53 and 54, Ranges 23, 24 and 25, all west of the
4th Meridian, which includes the City of Edmonton, the City of St.
Albert, Clover Bar, Sherwood Park, Lancaster Park, Namao and Winterburn;
(c) “rest
of Alberta territory” means all areas of Alberta that are not included in the
Edmonton territory or the Calgary territory.
Determining base
premium
2(1) The base premium for a relevant driver and occasional driver
is an amount calculated in accordance with the following table by determining
(a) the
territory in which the policyholder resides, and
(b) the
choice of the policyholder’s coverage under section 627 of the Act, namely:
$200 000, $500 000, $1 million or $2 million or such other
coverage amounts offered by the insurer that are included in the table.
Policyholder’s choice of coverage
|
Territory
|
Edmonton territory
|
Calgary territory
|
Rest of Alberta territory
|
$200 000
|
$1683
|
$1530
|
$1224
|
$250 000
|
$1738
|
$1580
|
$1264
|
$300 000
|
$1775
|
$1614
|
$1291
|
$400 000
|
$1835
|
$1668
|
$1334
|
$500 000
|
$1881
|
$1710
|
$1368
|
$750 000
|
$1922
|
$1747
|
$1398
|
$1 million
|
$1980
|
$1800
|
$1440
|
$2 million
|
$2158
|
$1962
|
$1570
|
NOTE: The amounts in this
table are subject to change by the Board under section 2(2), (3) and (4) of
this Schedule.
|
(2) The
Board must,
(a) effective November 1, 2005, reduce the differential
base premium between the Edmonton territory and the Calgary territory shown in
the table by 40%;
(b) effective November 1, 2006, reduce the
differential base premium between the Edmonton territory and the Calgary
territory shown in the table by 50%;
(c) effective November 1, 2007, eliminate the
remaining differential between the Edmonton territory and the Calgary territory
shown in the table.
(3) In making an adjustment under subsection (2), the Board must
ensure that the base premium for the rest of Alberta territory is 20% less than
for the Calgary territory.
(4) In addition to the adjustments under subsections (2) and
(3), if the Board has made an adjustment on an industry‑wide basis under
section 4 of this Regulation, the Board must, effective November 1 of the year
in which the adjustment is made, make a corresponding percentage change to the
base premiums in the table in this Schedule.
(5) The
base premium effective November 1, 2005, as changed by the Board in accordance
with subsections (2)(a), (3) and (4), is as follows:
Policyholder’s choice of coverage
|
Territory
|
Edmonton territory
|
Calgary territory
|
Rest of Alberta territory
|
$200 000
|
$1616
|
$1528
|
$1222
|
$250 000
|
$1668
|
$1577
|
$1262
|
$300 000
|
$1704
|
$1611
|
$1289
|
$400 000
|
$1762
|
$1665
|
$1332
|
$500 000
|
$1806
|
$1707
|
$1366
|
$750 000
|
$1845
|
$1744
|
$1395
|
$1 million
|
$1901
|
$1797
|
$1438
|
$2 million
|
$2072
|
$1959
|
$1567
|
(6) The
base premium effective November 1, 2006, as changed by the Board in accordance
with subsections (2)(b), (3) and (4), is as follows:
Policyholder’s choice of coverage
|
Territory
|
Edmonton territory
|
Calgary territory
|
Rest of Alberta territory
|
$200 000
|
$1567
|
$1524
|
$1220
|
$250 000
|
$1618
|
$1574
|
$1259
|
$300 000
|
$1653
|
$1607
|
$1286
|
$400 000
|
$1709
|
$1662
|
$1330
|
$500 000
|
$1751
|
$1704
|
$1363
|
$750 000
|
$1789
|
$1740
|
$1392
|
$1 million
|
$1844
|
$1793
|
$1435
|
$2 million
|
$2009
|
$1955
|
$1564
|
AR 124/2004 Sched.3;55/2005;261/2006
Schedule
4
Surcharges for At‑fault Accidents
and Driving Convictions
Surcharges for driving
convictions
1(1) The total of the percentages determined under subsections
(2) and (3) is the percentage to be included in element B of the formula
described in Schedule 1, section 6(1).
(2) A percentage is to be determined for
a driver in accordance with Table 1 for each of the following:
(a) for
serious traffic safety convictions on a driver’s abstract within the 3 years
before the effective date of basic coverage or renewal of basic coverage;
(b) for
traffic safety convictions on a driver’s abstract within the 3 years before the
effective date of basic coverage or renewal of basic coverage;
(c) for
criminal code convictions on a driver’s abstract within the 4 years before the
effective date of basic coverage or renewal of basic coverage.
(3) A percentage is to be determined for
a driver in accordance with Table 2 for a driver who in the 3 years before the
application for basic coverage has had 2 or more at‑fault claims.
Table
1
Number of convictions
|
Surcharge for
|
Traffic safety convictions
|
Serious traffic safety convictions
|
Criminal Code convictions
|
1
|
0%
|
25%
|
300%
|
2
|
25%
|
50%
|
450%
|
3
|
35%
|
100%
|
For each additional conviction, add
150 percentage points to the immediately preceding percentage
|
4
|
50%
|
200%
|
5
|
75%
|
400%
|
6
|
100%
|
800%
|
7 or
more
|
For each additional conviction, double
the immediately preceding percentage
|
For each additional conviction, double the immediately
preceding percentage
|
Table
2
Surcharge
for at‑fault claims in a 3‑year period
|
Number
of at‑fault claims
|
Percentage
to be added
|
2
|
30%
|
For
each additional at‑fault claim, add 15 percentage points to the
immediately preceding percentage
|
Definitions
2 In this Schedule,
(a) “at‑fault
claim” means at‑fault claim as defined in Schedule 1;
(b) “criminal code conviction” means a
conviction for an offence under section 130 of the National Defence Act
(Canada) or for any of the following offences under the Criminal Code
(Canada):
|
Description of offence
(for convenience of reference only)
|
Criminal Code Section Number
|
1
|
Criminal negligence causing death committed by means of a motor
vehicle
|
220
|
2
|
Criminal negligence causing bodily harm committed by means of a
motor vehicle
|
221
|
3
|
Manslaughter committed by means of a motor vehicle
|
236
|
4
|
Dangerous
operation of a motor vehicle
|
249(1)
|
5
|
Dangerous operation of a motor vehicle causing bodily
harm
|
249(3)
|
6
|
Dangerous operation of a motor vehicle causing death
|
249(4)
|
7
|
Failing to stop a motor vehicle while being pursued by
peace officer
|
249.1(1)
|
8
|
Failing to stop a motor vehicle causing bodily harm or
death while being pursued by peace officer
|
249.1(3)
|
9
|
Failing to stop at scene of accident
|
252(1)
|
10
|
Failing to stop at scene of accident knowing bodily harm
has been caused
|
252(1.2)
|
11
|
Failing to stop at scene of accident knowing death has
been caused or reckless re bodily harm causing death
|
252(1.3)
|
12
|
Impaired driving or over .08
|
253
|
13
|
Failing or refusing to provide a blood or breath sample
on demand
|
254
|
14
|
Impaired driving causing bodily harm
|
255(2)
|
15
|
Impaired driving causing death
|
255(3)
|
16
|
Operating a motor vehicle while disqualified
|
259(4)
|
(c) “driver
abstract” means the abstract of the driving record referred to in section 5(1)
of the Access to Motor Vehicle Information Regulation (AR 140/2003)
or a similar document of another province or territory in Canada;
(d) “serious traffic safety conviction” means a
conviction for any of the following offences under the Traffic Safety Act,
or a conviction for an offence that is substantially similar under an enactment
of Canada, other than the Criminal Code (Canada), or of another province
or territory:
|
Description of
offence
(for convenience of
reference only)
|
Enactment and
section number
|
Traffic Safety
Act
|
Use of Highway and Rules of the Road Regulation
|
1
|
Failing to remain at scene of accident
|
69(1)
|
|
2
|
Driver failing
to make accident report
|
71(1)
|
|
3
|
Improper
passing in school zone or playground zone
|
|
8
|
4
|
Drive a motor
vehicle during a prohibited period of time
|
51(g)
|
|
5
|
Novice
driver ‑ presence of alcohol suspension
|
90(4)(c) and
(d)
|
|
6
|
Speeding in
school zone or playground zone
|
107(2) and
108(1)(h)
|
|
7
|
Speeding
(general) ‑ exceeding limit by more than 50 kph
|
115(2)(p)
|
|
8
|
Speeding
(construction zone) ‑ exceeding limit by more than 50 kph
|
115(2)(p.1) and (p.2)
|
|
9
|
Speeding
(passing emergency vehicle) ‑ exceeding limit by more than 50 kph
|
115(2)(t)
|
|
10
|
Speeding
(flashing yellow light crossing) ‑ exceeding limit by more than
50 kph
|
|
53(5)(c)
|
11
|
Careless
driving
|
115(2)(b)
|
|
12
|
Racing
|
115(2)(c)
|
|
13
|
Driving on a
bet or wager
|
115(2)(d)
|
|
14
|
Failing to stop
for a school bus
|
|
72(1)
|
15
|
Driving while
unauthorized
|
94(2)
|
|
16
|
Failing to stop
school bus, vehicle carrying explosives, etc. at uncontrolled railway
crossing
|
|
42(5)
|
17
|
Failing to stop
for a peace officer
|
166(2)
|
|
(e) “traffic safety conviction” means a conviction
for any of the following offences under the Traffic Safety Act, or a
conviction for an offence that is substantially similar under an enactment of
Canada, other than the Criminal Code (Canada), or of another province or
territory:
|
Description of offence
(for convenience of
reference only)
|
Enactment and
section number
|
Traffic Safety Act
|
Use of Highway and Rules of the Road
Regulation
|
1
|
Speeding ‑ unreasonable rate of speed
|
|
2(1)(a)
|
2
|
Speeding
(general) ‑ exceeding limit by up to 15 kph
|
115(2)(p)
|
|
3
|
Speeding
(construction zone) ‑ exceeding limit by up to 15 kph
|
115(2)(p.1) and (p.2)
|
|
4
|
Speeding
(passing emergency vehicle) ‑ exceeding limit by up to 15 kph
|
115(2)(t)
|
|
5
|
Speeding
(flashing yellow light crossing) ‑ exceeding limit by up to 15 kph
|
|
53(5)(c)
|
6
|
Speeding
(general) ‑ exceeding limit by over 15 but not more than 30 kph
|
115(2)(p)
|
|
7
|
Speeding
(construction zone) ‑ exceeding limit by over 15 but not more than
30 kph
|
115(2)(p.1) and (p.2)
|
|
8
|
Speeding
(passing emergency vehicle) ‑ exceeding limit by over 15 but not more
than 30 kph
|
115(2)(t)
|
|
9
|
Speeding
(flashing yellow light crossing) ‑ exceeding limit by over 15 but not
more than 30 kph
|
|
53(5)(c)
|
10
|
Speeding
(general) ‑ exceeding limit by over 30 but not more than 50 kph
|
115(2)(p)
|
|
11
|
Speeding
(construction zone) ‑ exceeding limit by over 30 but not more than
50 kph
|
115(2)(p.1) and (p.2)
|
|
12
|
Speeding
(passing emergency vehicle) ‑ exceeding limit by over 30 but not more
than 50 kph
|
115(2)(t)
|
|
13
|
Speeding
(flashing yellow light crossing) ‑ exceeding limit by over 30 but not
more than 50 kph
|
|
53(5)(c)
|
14
|
Following too close
|
|
18
|
15
|
Failing to notify owner
(a) of an unattended vehicle
damaged in accident
(b) of property damaged in
accident
|
69(2)(a)
69(2)(b)
|
|
16
|
Failing to stop, etc. when meeting oncoming vehicle on
narrow roadway
|
|
14
|
17
|
Passing on hill or curve or near railway crossing
|
|
19(1)
|
18
|
Passing on left when view obstructed or traffic present
on left side of highway
|
|
20
|
19
|
Failing to pass on left in safe manner or failing to
return to right side of roadway in safe manner
|
|
21(1)
|
20
|
Overtaking another vehicle by driving off the roadway, in a
parking lane or when unsafe
|
|
23
|
21
|
Passing another vehicle stopped at crosswalk
|
|
41(2)
|
22
|
Driving left of centre line
|
|
12(1)
|
23
|
Driving wrong way on one‑way highway
|
|
17
|
24
|
Impeding passing vehicle
|
|
21(2)
|
25
|
Impeding passing vehicle ‑ multi‑lane highway
|
|
22(2)(b)
|
26
|
Failing to yield right of way to a vehicle
(a) at an intersection, or turning
left unsafely
(b) at yield sign
(c) in traffic circle
(d) at merge sign
(e) at green light or green arrow
(f) at flashing yellow light
|
|
34
39
40
50, 51
52(1), (3)‑(5)
53(3)
|
27
|
Failing to yield right of way to a pedestrian
(a) at an alley entrance or driveway
(b) in a crosswalk
(c) at a green light or green arrow
(d) at flashing yellow light at
intersection
(e) at flashing yellow light
not at
intersection
(f) at flashing yellow light with
zone
sign or symbol
|
|
36(3)
41(1)
52(1)‑(5)
53(3)
53(4)
53(5)(d)
|
28
|
Failing to stop
(a) before entering highway
(b) at a stop sign
(c) for an emergency vehicle
sounding
siren
(d) at railway crossing when
a train
is approaching
(e) within prescribed
distance from
railway when stop
sign
(f) at yellow light at
intersection
(g) at yellow light not at
intersection
(h) at red light at
intersection
(i) at red light not at
intersection
(j) at flashing red light at
intersection
(k) at flashing red light
not at
intersection
|
|
36(2)
37
65(1)
42(2)
42(4)(a)
53(1)
53(2)
54(1)(a)
54(4)
54(5)(a)
54(6)(a)
|
29
|
Unauthorized following within 150 metres of emergency
vehicle sounding siren or with flashing lights or both
|
|
65(2)
|
30
|
Driving around barrier at railway crossing
|
|
42(3)
|
31
|
Proceeding when unsafe
(a) after stopping at intersection
(b) after stopping for stop sign at
railway crossing
(c) after stopping for school bus
(d) after stopping for red light at
intersection
(e) after stopping for flashing red
light at
intersection
(f) after stopping for flashing red
light not at
intersection
|
|
38
42(4)(b)
72(2)
54(1)(b)
54(5)(b)
54(6)(b)
|
32
|
Stunting
|
115(2)(f)
|
|
33
|
Traffic lane violation
(a) slow moving vehicle in incorrect
lane
(b) driving at less than maximum
speed in
designated fast lane
outside an urban
area
(c) improperly crossing solid or
broken lines or
driving
improperly on
left side of
broken lines on 2‑way
highway
(d) making unsafe lane change
(e) failing to drive in centre of
marked lane
(f) occupying 2 lanes
(g) improperly driving in centre
lane of 3 lane
highway
(h) driving in lane marked with “X”
|
|
3
2(1)(b)
15(1)
15(4)
15(5)
15(6)
16(1)
27(4)
|
34
|
Failing to obey instruction of traffic control device
|
|
57
|
35
|
Slow driving impeding or blocking traffic
|
|
2(1)(c)
|
36
|
Driving at less than minimum speed
|
115(2)(q)
|
|
37
|
Failing to obey direction of peace officer to increase
speed, etc.
|
|
2(4)
|
38
|
Failing to signal
(a) when changing lanes
(b) when turning left or
right
(c) when stopping
|
|
15(2)
24
35
|
39
|
Failing to make proper signal when starting, turning or changing
the course or direction of a vehicle or stopping a vehicle on a highway
|
|
9(b)
|
40
|
Improper turns
(a) when turning right
(b) when turning left
(c) failing to obey traffic control
device
(d) making U‑turn unsafely or
where prohibited
(e) making U‑turn with a
school
bus where
prohibited
|
|
25
26
27(1), (2)
29, 30
31
|
41
|
Backing up vehicle unsafely or where prohibited
|
|
32, 33
|
42
|
Fail to ascertain sufficient space for movement
|
|
9(a)
|
AR 124/2004
Sched.4;261/2006