MEMBERS OF THE FACILITY ASSOCIATION
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1 TO: ATTENTION: MEMBERS OF THE FACILITY ASSOCIATION CHIEF EXECUTIVE OFFICER RISK SHARING POOL PROJECT MANAGERS DATE: MAY 27, 2008 BULLETIN NO: F SUBJECT PLAN AMENDMENTS - BROKER/AGENT COMMISSION ON RISK SHARING POOL BUSINESS The Facility Association Board of Directors has approved the following amendments to the Operating Principles of the Plan of Operation under its authority as per Plan of Operation Article VII Section 6 (f): Appendix C (Ontario) The paragraph reading: The base rate of commission on Risk Sharing Pool business must be the standard policy commission base rate that would be applicable if such business had been retained for its own account Be deleted and replaced by the following: The base rate of commission on Risk Sharing Pool business must not be less than the standard policy commission base rate that would be applicable if such business had been retained by the insurer for its own account. Appendix C (All Provinces except Ontario) Add the following paragraph at the end: The base rate of commission on Risk Sharing Pool business must not be less than the standard policy commission base rate that would be applicable if such business had been retained by the insurer for its own account. The changes have received the required regulatory approval. Please find the updated Appendices attached for your reference. David J. Simpson, M.B.A., FCIP President & CEO Attach.
2 APPENDIX C (ONTARIO) Page 1 of 2 FACILITY ASSOCIATION The rates of commission on Facility Association non-pool business shall be as follows: O.P.F. 1 * 1. Private Passenger Vehicles (see Note hereunder): a. Class 10/11/ % b. Other % Subject to a Maximum Commission of $250 per vehicle per annum. * 2. Motor-Homes... * 3. Cabin/Home Trailers... * 4. Other private-type trailers... If used for pleasure purposes, see Private Passenger Vehicles ; otherwise see Other Commercial Vehicles. * 5. Camper Units Motorcycles/Mopeds All-Terrain Vehicles Snow Vehicles and other recreational vehicles... Including Police/Fire Department vehicles and Commercial use...7 ½ % Subject to a Maximum Commission of $125 per vehicle per annum. 8. Long-Haul Vehicles (including trailers) Public Buses % 10. Taxis, Limousine Services (incl. airport)... * 11. Other Public Vehicles (including Police/Fire Department vehicles, Funeral vehicles, Buses other than Public Buses, Van Pool, Ambulances) % Subject to a Maximum Commission of $250 per vehicle per annum.
3 APPENDIX C (ONTARIO) Page 2 of 2 * 12. Other Commercial Vehicles (including trailers) % 13. Experience-rated risks, Maximum Annual Fee per vehicle shall not exceed... 7 ½ % * Excluding experience-rated risks. O.P.F. 2 ( Driver s policy ) in accordance with the rating. O.P.F. 4 ( Garage risks) % O.P.F. 6 ( Non-Owned Automobile Liability ) % Note: 1. The expression Private Passenger Vehicles includes Antique/Classic automobiles, Commercial-Type vehicles that are rated as Private Passenger vehicles and Driving School vehicles (Class 07), but excludes vehicles rated as Commercial or Public vehicles, Fire and Police Department vehicles (Class 53) and Funeral vehicles (Class 75). 2. For six month policies the cap is 50% of the annual amount shown above. 3. No other additional fee for Service may be charged. The base rate of commission on Risk Sharing Pool business must not be less than the standard policy commission base rate that would be applicable if such business had been retained by the insurer for its own account.
4 APPENDIX C (All Provinces excluding Ontario) Page 1 of 2 FACILITY ASSOCIATION The rates of commission on Facility Association non-pool business shall be as follows: S.P.F. 1 * 1. Private Passenger Vehicles (see Note hereunder): a. Class 10/11/ % b. Other % * 2. Motor-Homes... * 3. Cabin/Home Trailers... * 4. Other private-type trailers... If used for pleasure purposes, see Private Passenger Vehicles ; otherwise see Other Commercial Vehicles. * 5. Camper Units Motorcycles/Mopeds All-Terrain Vehicles Snow Vehicles and other recreational vehicles... Including Police/Fire Department vehicles and Commercial use...7 ½ % 8. Long-Haul Vehicles (including trailers) Public Buses % 10. Taxis, Limousine Services (incl. airport)... * 11. Other Public Vehicles (including Police/Fire Department vehicles, Funeral vehicles, Buses other than Public Buses, Van Pool, Ambulances) % * 12. Other Commercial Vehicles (including trailers) % 13. Experience-rated risks except those for which the standard commission rate is lower... 7 ½ % * Excluding experience-rated risks.
5 APPENDIX C (All Provinces excl. Ontario) Page 2 of 2 S.P.F. 2 ( Driver s policy ) in accordance with the rating. S.P.F. 4 ( Garage risks) % S.P.F. 6 ( Non-Owned Automobile Liability ) % Note: The expression Private Passenger Vehicles includes Antique/Classic automobiles, Commercial-Type vehicles that are rated as Private Passenger vehicles and Driving School vehicles (Class 07), but excludes vehicles rated as Commercial or Public vehicles, Fire and Police Department vehicles (Class 53) and Funeral vehicles (Class 75). The base rate of commission on Risk Sharing Pool business must not be less than the standard policy commission base rate that would be applicable if such business had been retained by the insurer for its own account.
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