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Rate Decrease Filing Regulations
made under clauses 16AA(1)(c) and 159(1)(k) of the
Insurance Act
R.S.N.S. 1989, c. 231
O.I.C. 2008-95 (March 11, 2008), N.S. Reg. 101/2008
Citation
1 These regulations may be cited as the Rate Decrease Filing Regulations.
Definition
2 In these regulations,
(a) “Act” means the Insurance Act;
(b) “belonging to a rating bureau”, in reference to an insurer making a filing under Section 155B of the Act, means
(i) being listed as a member of a rating bureau in a filing made by the rating bureau with the office of the Board under Section 152 of the Act, and
(ii) for any category of automobile insurance included in the filing, adopting or using the rates filed or promulgated by the rating bureau payable on contracts of automobile insurance in the Province;
(c) “Board” means the Board as defined in Section 3 of the Act;
(d) “date of the filing” of a schedule of rates filed by an insurer under Section 155B of the Act means the date on which the schedule is received by the Board;
(e) “Executive Officer” means the Executive Officer as defined in Section 16A of the Act;
(f) “rating bureau” means a rating bureau as defined in clause 104(k) of the Act;
(g) “rate decrease” means a rate decrease proposed by an insurer that results in a rate for a coverage or category of automobile insurance that is less than the insurer’s rate for the same coverage or category last approved or deemed approved by the Board or for which a filing has been completed under Section 155B of the Act, and includes an increase in an existing discount on a rate charged by the insurer;
(h) “rate increase” means a rate increase proposed by an insurer that results in a rate for a coverage or category of automobile insurance that is greater than the insurer’s rate for the same coverage or category last approved or deemed approved by the Board or for which a filing has been completed under Section 155B of the Act, and includes a decrease in an existing discount on a rate charged by the insurer;
(i) “schedule of overall rate decreases without a cap” means a schedule of rates for automobile insurance that reduces the insurer’s average premium for each automobile insurance category included in the schedule, but contains changes in rates that may increase, by more than 2% per annum, the premium applicable to an existing individual insured, and does not contain any of the following:
(i) risk-classification system changes,
(ii) introduction or elimination of discounts or surcharges, or changes to eligibility criteria for discounts or surcharges,
(iii) rating rule changes,
(iv) rating algorithm changes,
(v) introduction or elimination of, or changes to, a discount program based on group membership;
(j) “schedule of overall rate decreases with a cap” means a schedule of rates for automobile insurance that reduces the insurer’s average premium for each automobile insurance category included in the schedule, but either contains no rate increases or, by the imposition of a cap, does not increase the premium applicable to any existing individual insured by more than 2% per annum, and does not contain any of the following:
(i) risk-classification system changes,
(ii) introduction or elimination of discounts or surcharges, or changes to eligibility criteria for discounts or surcharges,
(iii) rating rule changes,
(iv) rating algorithm changes,
(v) introduction or elimination of, or changes to, a discount program based on group membership.
Schedule of Overall Rate Decreases With a Cap
Filing of schedule of overall rate decreases with a cap
3 (1) A schedule of overall rate decreases with a cap filed by an insurer with the Board under Section 155B of the Act must be accompanied by all of the following:
(a) a statement of an officer or actuary of the insurer certifying that the schedule filed is a schedule of overall rate decreases with a cap and that the filing of the schedule will not increase the premiums applicable to any existing individual insured by more than 2% per annum;
(b) a statement of an officer or actuary of the insurer certifying that the insurer is not an insurer belonging to a rating bureau for the purpose of the filing;
(c) any document or information required by the office of the Board in addition to the statements required by clauses (a) and (b), as published by the Board.
(2) A filing of a schedule as a schedule of overall rate decreases with a cap must be reviewed by the Executive Officer, or by employees of the office of the Board as designated by the Executive Officer, to ensure that it is complete in accordance with subsection (1).
(3) If a filing of a schedule as a schedule of overall rate decreases with a cap is incomplete, the Executive Officer must notify the insurer in writing no later than 10 calendar days after the date of the filing and include in that notice details of the missing required documents or information.
(4) A filing for which a notice of incomplete filing is issued under subsection (3) may be amended and refiled by the insurer, and subsections (1), (2) and (3) apply to the refiling.
(5) The Executive Officer may notify an insurer in writing that a schedule of overall rate decrease with a cap is complete in accordance with subsection (1), and the rate decreases set out in the schedule are effective on the date of the notice or on the date or dates specified in the schedule, whichever is later.
Filing of schedule of overall rate decreases with a cap deemed to be complete
4 (1) If a notice of incomplete filing under subsection 3(3) is not issued by the Executive Officer within the period specified in that subsection, the filing is deemed to be complete in accordance with subsection 3(1).
(2) The rate decreases set out in a schedule that is deemed to be complete in accordance with subsection 3(1) are effective on the date that the schedule is deemed complete or on the date or dates specified in the schedule, whichever is later.
(3) A schedule filed as a schedule of overall rate decreases with a cap under subsection 3(1) is not reviewable by the Board and may not be changed or disapproved by the Board.
Schedule of Overall Rate Decreases Without a Cap
Filing of schedule of overall rate decreases without a cap
5 A schedule of overall rate decreases without a cap filed by an insurer with the Board under Section 155B of the Act must be accompanied by a statement of an officer of the insurer certifying that the insurer is not an insurer belonging to a rating bureau for the purpose of the filing.
Notice of intent to review
6 If the Board intends to review a schedule of overall rate decreases without a cap filed by an insurer, the Board must notify the insurer in writing no later than 10 calendar days after the date of the filing that it intends to review the schedule.
Deemed approval of schedule of overall rate decreases without a cap
7 If the Board does not notify an insurer under Section 6 that it intends to review a schedule of overall rate decreases without a cap, the schedule is deemed to be approved by the Board and the Board has no further opportunity to review the schedule.
Board review and notification
8 (1) If the Board notifies an insurer as required by Section 6 of its intent to review a schedule of overall rate decreases without a cap, the Board, no later than 20 calendar days after the date of the filing, must
(a) review the schedule; and
(b) if the Board requires a change to or disapproves of the schedule, notify the insurer in writing of the required change or the disapproval and give reasonably adequate details about the Board’s reasons for the change or disapproval.
(2) If the Board does not notify an insurer under clause (1)(b) that it requires a change to or disapproves of a schedule, the schedule is deemed to be approved by the Board and the Board has no further opportunity to review the filing.
(3) The Board may notify an insurer in writing that it approves of a schedule of overall rate decreases without a cap.
(4) Rate changes in a schedule of overall rate decreases without a cap that is approved or deemed to be approved by the Board are effective on the date of the approval, the date of the deemed approval or the date or dates specified in the schedule, whichever is latest.