2 Calculation of
assessment factors
3 Variables in
formulas
4 Payment due
date
5 Penalty
6 Interim payment
of penalty
7 Interest
8 Repeal
9 Expiry
Interpretation
1(1) In this Regulation,
(a) “assessment
factor year” means the calendar year in respect of which an assessment factor
is or will be established;
(b) “total
premiums” in respect of a calendar year means the total premiums written in the
calendar year for third party liability insurance, as determined by the
Minister of Finance by automobile insurers licensed to provide automobile
insurance under the Insurance Act for all or a portion of the calendar
year.
(2) The
definitions in sections 1 and 61 of the Act apply to this Regulation.
(3) If
an automobile insurer is required to pay an amount under sections 90 and 91 of
the Act in respect of a year, a reference in this Regulation to an amount that
the insurer is required to pay under section 86 of the Act in that year means
the amount under sections 90 and 91 of the Act.
AR 219/96
s1;142/2001;251/2001;105/2005
Calculation of
assessment factors
2 The Minister of Finance shall establish
the assessment factor in respect of any given calendar year for the purposes of
Division 2 of Part 5 of the Act by using the formula:
assessment
factor (for the = A
assessment factor year) B
rounded off to 4 decimal places and then converted to a
percentage.
AR 219/96
s2;142/2001;105/2005
Variables in formulas
3 For the purposes of calculating an
assessment factor under section 2,
(a) A
is the Minister of Health and Wellness’s estimate of the Crown’s cost of health
services referred to in section 82(2)(a) of the Act for the assessment factor
year plus the aggregate assessment for the previous assessment factor year less
the amount collected by the Minister of Finance under this Regulation for the
previous assessment factor year;
(b) B
is the projected total premiums for the assessment factor year calculated in
accordance with the formula:
B
= 2[C(1-D)] + E
where
C is the average of the changes in total premiums between
(i) the 2nd and 3rd calendar years preceding the
assessment factor year,
(ii) the 3rd and 4th calendar years preceding the
assessment factor year, and
(iii) the 4th and 5th calendar years preceding the
assessment factor year;
D is an adjustment factor established by the Minister of Finance
for the assessment factor year;
E is the total premiums for the 2nd calendar
year preceding the assessment factor year.
AR 219/96
s3;65/98;142/2001;251/2001;105/2005
Payment due date
4 An automobile insurer who is
required to pay an amount under section 86 of the Act in respect of a calendar
year shall pay the amount to the Minister of Finance, on or before March 15 of
the following year.
AR 219/96
s4;142/2001;251/2001;27/2002;105/2005
Penalty
5 An automobile insurer who fails to file a
report for a calendar year as required by section 87 of the Act shall pay a
penalty to the Minister of Finance, in an amount that is the greater of
(a) $25
per day for each day of default, and
(b) the
sum of
(i) 5% of the unpaid amount, if any, required to be paid under
section 86 of the Act on the required filing date of March 15, and
(ii) 1% of the unpaid amount, if any, required to
be paid under section 86 of the Act on the 15th day of each subsequent month in
which the report remains unfiled.
AR 219/96
s5;142/2001;251/2001;27/2002;227/2004;105/2005
Interim payment of
penalty
6(1) The Minister of Finance may, in respect of an
automobile insurer who has failed to file a report for a calendar year as
required by section 87 of the Act, send a notice to the insurer requiring the
insurer to pay a portion of the penalty referred to in section 5 with interest
calculated to a specified day.
(2) The
amount of the penalty in the notice is calculated in accordance with section 5,
except that the product referred to in section 5(b)(ii) is zero.
(3) An
automobile insurer who receives a notice referred to in subsection (1) shall
immediately pay the amount under the notice to the Minister of Finance.
(4) Any amount paid by an automobile insurer as a
result of a notice under this section shall be subtracted from the penalty
under section 5 and interest on the penalty calculated after an automobile
insurer files a report as required by section 87 of the Act.
AR 219/96
s6;142/2001;251/2001;27/2002;105/2005
Interest
7(1) Interest on an amount that an automobile
insurer is required to pay under section 86 of the Act in respect of a year
accrues on any unpaid portion of the amount starting on March 16 of the
following year.
(2) Interest
on a penalty referred to in section 87 of the Act that arises because an automobile
insurer did not file a report on or before March 15 of a year starts to accrue
on March 16 of that year.
(3) The
interest referred to in subsections (1) and (2) is calculated daily and the
interest is compounded daily.
(4) The
rate of interest referred to in subsections (1) and (2) is determined for each
quarter of the year and is the sum of
(a) the
rate that is the simple arithmetic mean, expressed as a percentage per year and
rounded to the next higher whole percentage where the mean is not a whole
percentage, of the weekly average equivalent yield, expressed as a percentage
per year, of Government of Canada Treasury Bills that mature approximately
three months after their date of issue and that are sold at a weekly auction of
Government of Canada Treasury Bills during the first month of the preceding
quarter, and
(b) 3.5%.
AR 219/96
s7;251/2001;202/2005
Repeal
8 The Assessment Factor Regulation
(Alta. Reg. 117/96) is repealed.
Expiry
9 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 July 31, 2016.
AR 219/96
s9;142/2001;184/2006
