March 21, 2005

Edmonton... Fulfilling commitments made as part of automobile insurance reforms are the driving force behind the Insurance Amendment Act, 2005. Bill 34 was introduced, March 21^st by Peace River MLA, Frank Oberle.

One of the amendments would see public insurers given access to sell auto insurance in Alberta. "We are following through on a commitment made last summer to allow BC's ICBC, Saskatchewan's SGI Insurance and Manitoba's Public Insurance to enter the province's competitive insurance market," says Oberle. "This proposed change also means these companies must follow the same regulations as private insurers."

Other proposed changes to the Act include:

• Clarification that the all comers rule applies only to insurance for private passenger vehicles;
• Making sure insurers are members of the General Insurance OmbudService to facilitate disputes that may occur with a driver's automobile premium;
• Outlining that insurance companies are not entitled to compensation for revenue losses caused by government's premium freeze;
• Allowing a term or condition to be put on an insurer's licence at any time during the term of the licence;
• Permitting the Superintendent of Insurance to issue interpretive guidelines to assist with more effective regulation of the industry.

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This news release is available on the Alberta Finance homepage at: http://www.finance.gov.ab.ca

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