NEWFOUNDLAND
AND
LABRADOR
REGULATION 83/04
Insurance Premiums Interest Rates Regulations
under the
Automobile Insurance Act
(
July 28, 2004
)
Under the authority of subsection 6.3(2) of the Automobile Insurance Act
, the minister makes the following regulations.
Dated at
St. Johns
,
July 28, 2004
.
Dianne Whalen
Minister of Government Services
REGULATIONS
Analysis
Short title
1.
These regulations may be cited as Insurance Premiums Interest Rates Regulations
.
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Definitions
2.
Where an insured pays a premium required under an automobile insurance contact in equal monthly instalments, an insurer shall not charge a rate of interest exceeding
(a)
3% of the total premium payable under the contract if the term of the contract is 12 months or more;
(b)
1.5% of the total premium payable under the contract if the term of the contract is 6 months or more but less than 12 months; and
(c)
0.5% of the total premium payable under the contract if the term of the contract is less than 6 months.
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Application of rates
3.
The interest rates set out in section 2 apply to contracts of automobile insurance renewed or entered into after
August 1, 2004
.
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