NEWFOUNDLAND AND LABRADOR REGULATION 52/05

NEWFOUNDLAND AND LABRADOR
REGULATION 52/05

Automobile Insurance Prohibited Underwriting
Regulations (Amendment)
under the
Insurance Companies Act
(O.C. 2005-399)

(Filed June 30, 2005)

Under the authority of section 107 of the Insurance Companies Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, June 29, 2005.

Tim Murphy
Deputy Clerk of the Executive Council

REGULATIONS

Analysis

NLR 80/04

1. (1) Subsection 4(1) of the Automobile Insurance Prohibited Underwriting Regulations is amended by deleting the word "and" at the end of paragraph (1)(e) and adding immediately after that paragraph the following:

(e.1) the age, sex or marital status of a person; and

(2) Section 4 of the regulations is amended by adding immediately after subsection (1) the following:

(2) Notwithstanding paragraph (1)(e.1), an insurer is not prohibited from

(a) providing a discount based on the age of the operator of the vehicle where the operator is at least 55 years of age; or

(b) using driving experience as an element in its risk classification system.

(3) Notwithstanding paragraph (1)(e.1), for contracts issued or renewed after August 1, 2005, an insurer may continue to use an approved rate that is based on age, sex or marital status until the insurer has filed a rate with the board as required under section 62.1 of the Act and the rate is permitted to be used, or approved for use, by the board.

(4) Where, in a contract issued or renewed after August 1, 2005, an insurer continues to use a rate based on age, sex or marital status as permitted under subsection (3) and the rate is higher than

(a) the rate filed with the board under section 62.1 of the Act; and

(b) permitted to be used, or approved for use, by the board,

the difference shall be refunded to the insured, or credited to the insured on the premium remaining to be paid under the contract, within 60 days of the date the rate is permitted to be used, or is approved for use, by the board.

(5) For 12 months from the date this subsection comes into force an insurer shall not increase a rate for a female operator under the age of 25 who is not the principal operator of the vehicle.

(6) For 12 months from the date this subsection comes into force an insurer shall not increase a rate for an operator of a vehicle due to the prohibition in subsection (5).

(7) In subsection (5), "principal operator" means the person who operates the vehicle for most of the time.

Commencement

2. These regulations come into force on August 1, 2005.