July 20, British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z 2N3

Transcription

1 Insurance Corporation of British Columbia 151 W. Esplanade North Vancouver BC V7M 3H9 Phone: (604) B-14 July 20, 2007 British Columbia Utilities Commission Sixth Floor 900 Howe Street Vancouver, BC V6Z 2N3 Attention: Robert J. Pellatt, Commission Secretary Dear Mr. Pellatt: In ICBC's Rate Design Application filed on March 29, 2007 ICBC proposed the creation of a new Driver Risk Premium (DRP) (see Chapter 17.1 of the Application for details) and a new ratiqg variable for "Other Operators" of a vehicle (see Chapter 17.2 of the Application for details). In response to information request RD BCOAPO 51.1, ICBC committed to providing the Commission with the Tariff wording describing the Other Operator rating variable by July 23, 2007, in advance of the oral hearing on ICBC's Rate Design Application. Attached are the proposed amendments to the Basic Insurance Tariff to implement the DRP and the Other Operator rating variable. ICBC is requesting the Commission to approve the DRP amendment (Attachment A) to be effective January 1, 2008, and the Other Operator amendment (Attachment B) to be effective May 1,2008. You will note that the proposed Tariff provision with respect to DRP does not incorporate the table of Criminal Code of Canada offences that was set out in the revised Appendix 17.1 B of ICBC's application, but instead refers to the offences listed in Table 3 of the Schedule to Division 28 of the Motor Vehicle Act Regulation. There are only very minor differences between the two tables, and in ICBC's view it was preferable to remain consistent with the existing legislation rather than creating a new table of offences. Director, Regulatory Affairs Enclosures (2)

2 Attachment A Driver Risk Premium Tariff Amendment Insurance Corporation of British Columbia July 2007

3 2.G. Premium Payable for Driver s Certificates 2.G.1 Premium Payable for Driver s Certificate The annual premium payable by a person for a driver s certificate issued pursuant to section 43 of the IVR is the total of: (a) the greater of: (i) the point penalty premium calculated in accordance with Section 2 of Schedule E, and (ii) the driver risk premium calculated in accordance with Section 3 of Schedule E, and (b) the multiple crash premium calculated in accordance with Schedule F. 2.G.2. Application of Other Basic Insurance Tariff Provisions and IVR Sections Section 2.K of this Basic Insurance Tariff and section 15.7 of the IVR apply in respect of premium payable for driver s certificates. SCHEDULE E DRIVER POINT PENALTY PREMIUM AND DRIVER RISK PREMIUM 1. Definitions In this Schedule: 10 point MVA Conviction means a conviction for any offence under the Motor Vehicle Act that is listed in Table 4 set out in the Schedule to Division 28 of the Motor Vehicle Act Regulation, BC Reg 26/58 as amended from time to time, Contravention means any: (a) MVA Conviction, (b) 10 point MVA Conviction, (c) Criminal Code of Canada Conviction, (d) Conviction for Excessive Speed, or (e) Road Side Suspension, Conviction for Excessive Speed means a conviction for an offence under section 148 of the Motor Vehicle Act.

4 Criminal Code of Canada Conviction means a conviction for any driving offence under the Criminal Code of Canada that is listed in Table 4 set out in the Schedule to Division 28 of the Motor Vehicle Act Regulation, BC Reg 26/58 as amended from time to time, MVA Conviction means a conviction for any offence listed in Table 1, 2 or 3 set out in the Schedule to Division 28 of the Motor Vehicle Act Regulation, BC Reg 26/58 as amended from time to time, except a Conviction for Excessive Speed, one-year scan period, in respect of a person, means the 12 month period starting 17 months before the anniversary of the person's birth date, Road Side Suspension means a suspension pursuant to section 90.3 or 215 of the Motor Vehicle Act, three-year scan period in respect of a person, means the 36 month period starting 41 months before the anniversary of the person s birth date, but does not include any portion of that 36 month period before January 1, 2008, Total Contraventions means the total of all Contraventions, regardless of whether or not a premium is payable in respect of the Contravention under Tables 2, 3 or Point Penalty Premium 2.1 For the purpose of this section 2, the classes of drivers set out in Table 1 of this Schedule are established. 2.2 A person falls within a class of drivers established under subsection 2.1, if the total of the following equals the number of point penalties that in column A of Table 1 identifies that class: (a) the number of point penalties recorded by ICBC against the driving record of that person for offences committed during the one-year scan period; and (b) the number of point penalties recorded by ICBC, since the date of the last assessment, against the driving record of that person for offences committed before the one-year scan period. 2.3 The annual point penalty premium payable by a person for a driver's certificate is the amount shown in column B of Table 1 opposite the number of point penalties that, in column A of that Table, identifies the person's class.

5 TABLE 1 Point Penalty Premium Column A Column B Class of Drivers by Number of Point Penalties Annual Premium ($) 0-3 nil

6 or more

7 3. Driver Risk Premium 3.1 The annual driver risk premium payable by a person for a driver s certificate is determined with reference to the Total Contraventions recorded by ICBC in respect of that person during the three-year scan period and is the total of: (a) (b) the amounts set out in Column B of each of Tables 2, 3 and 4 that correspond to the number of the type of Contraventions referred to in each Table, and the amount set out in Column B of Table 5 that corresponds to the number of Total Contraventions. TABLE 2 Driver Risk Premium for Criminal Code Convictions and 10 Point MVA Convictions Driver Risk Premium Schedule Column A Column B Number of Premium Contraventions: Criminal Code of Canada Conviction or 10 point MVA Conviction 1 $ $ 3,760 3 $ 8,160 4 $ 14,560 5 $ 24,000 6 $ 24,000 7 $ 24,000 8 $ 24,000 9 $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24,000

8 21 $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24, $ 24,000 TABLE 3 Driver Risk Premium for Road Side Suspensions Driver Risk Premium Schedule Column A Column B Number of Premium Contraventions: Road Side Suspension 1 $ 0 2 $ $ $ 490

9 5 $ $ $ $ $ $ 1, $ 1, $ 1, $ 1, $ 1, $ 2, $ 2, $ 3, $ 3, $ 3, $ 4, $ 5, $ 6, $ 6, $ 8, $ 9, $ 10, $ 12, $ 14, $ 16, $ 18, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20, $ 20,000

10 TABLE 4 Driver Risk Premium for Convictions for Excessive Speed Driver Risk Premium Schedule Column A Column B Number of Premium Contraventions: Convictions for Excessive Speed 1 $ $ $ $ $ $ $ $ $ $ 1, $ 1, $ 1, $ 1, $ 1, $ 2, $ 2, $ 3, $ 3, $ 3, $ 4, $ 5, $ 6, $ 6, $ 8, $ 9, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10,000

11 35 $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10,000 TABLE 5 Driver Risk Premium for Total Contraventions Driver Risk Premium Schedule Column A Column B Total Premium Contraventions $ $ $ $ $ $ $ $ $ 1, $ 1, $ 1, $ 1, $ 1, $ 2, $ 2, $ 2, $ 3, $ 3,740

12 21 $ 4, $ 4, $ 5, $ 6, $ 7, $ 8, $ 9, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, $ 10, Refunds 4.1 In the circumstances described in column A of Table 6 of this Schedule E and subject to the minimum time requirements set out in column B of Table 6 and the additional requirements set out in column C of Table 6, ICBC shall, on application, refund to a person named on a driver s certificate or his personal representative that part of the premium, calculated according to section 2.H of this Basic Insurance Tariff, paid for the period the driver s certificate is not in use or for the term of the driver s certificate remaining unexpired on the day it is surrendered. 4.2 Notwithstanding anything in section 4.1 of this Schedule E, if a person who has applied for and been granted a refund in accordance with section 4.1 is, during the term of the driver s certificate for which the refund has been granted:

13 (a) convicted of an offence referred to in Tables 2 or 4 of this Schedule, or (b) involved in a motor vehicle crash while operating a motor vehicle the person must repay the amount of the refund paid by ICBC. Column A Circumstances TABLE 6 Refund of Driver Point Penalty Premium Column B Minimum Time Requirements Column C Additional Requirements Suspension 60 days or more Motor Vehicle Branch confirmation on suspensions before Voluntary surrender 30 days or more Out of province for part or whole period covered in billing Not in Canada or U.S.A. for part or whole period covered in billing Motor Vehicle Branch confirmation 30 days or more written confirmation of issue date, or photocopy of new drivers licence 30 days or more photocopies of passport date stamp confirming out of country dates Incarceration 30 days or more letter from prison authorities, confirming dates of incarceration and that there were no out privileges when driver's licence could have been used Medical reason 30 days or more physician's letter confirming that person is unable to drive no evidence of driving, e.g. points or claim on driving record * Minimum time requirement refers to a continuous period of time.

14 Attachment B Other Operator Tariff Amendment Insurance Corporation of British Columbia July 2007

15 Other Operator Tariff Changes Section 2.C.2 (amend): - add, then at the end of subsection 3 - add a new subsection 4: adding an other operator premium, if any, calculated in accordance with Schedule W. Schedule D (amend): - amend the start of s. 6.1 to read: Subject to sections 6.2 and add a new section 6.5: Notwithstanding section 6.1, a chargeable claim payment may be used concurrently to determine an other operator premium under Schedule W and premium payable under this Schedule D. Schedule W (new) Definitions chargeable other operator means a person who, in respect of a vehicle described in an application for an owner s certificate: (a) is an other operator in accordance with section 19(2) or section 9(2) of the IVR, (b) has an other operator level of -8 or higher (i.e., a level of -8, -7, -6, -5, and so on) (c) has an other operator level higher than the CRS level applicable to the vehicle (e.g., if the vehicle has a CRS level of -7 and the other operator has an other operator level of -5), and (d) is not the registered owner, lessee, principal operator or chargeable other operator of any other vehicle described in an owner s certificate. other operator level means the level designated by a whole number applicable to an other operator determined in accordance with the method of other operator level determination set out below. Other Operator Level Determination

16 The other operator level for a person shall be equal to the CRS level that would be determined in accordance with Schedule D if that person applied for a new certificate for a vehicle where the person is both the registered owner and principal operator, except that: (a) chargeable claim payments on the claim payment record of the person shall not be used in the determination if the claim payment relates to an occurrence where the person was not using or operating a vehicle, and (b) chargeable claim payments shall be used in the determination even if the chargeable claim payments are concurrently being used in the determination of premium payable under Schedule D. Premium Calculation If, in respect of a vehicle for which an application for Basic insurance is made: (a) there is an other operator of the vehicle who is a chargeable other operator, and (b) the vehicle is rated in rate class 001, 002, 003, 004, 005, 007, 021, 022, 023, 024, 027, 311, 312, 313, 314, 321, 322, 323 or 324, then the other operator premium payable in respect of the vehicle is $ In all other cases no other operator premium is payable.