- Yes the applicant would qualify for the Plan de repartition des risques(PRR)
- In Quebec, the Groupement des assureurs automobiles administers a risk sharing plan called the Plan de repartition des risques(PRR)
- The PRR supports insurers providing access to automobile insurance for all Quebec automobile owners.
- All automobile insurers licensed in Quebec participate in the PRR, except those who do not write any automobile 3rd party liability insurance.
- The PRR is a mechanism that allows an insurer to transfer any risk that does not meet its underwriting criteria into a shared pool
- The underwriting profit or loss of the pooled risks,
- as well as administration costs,
- are shared between participants in the ratio of their percentage of the total automobile written volume in Quebec.
b) 1) Rate Calculation
- No standard rates are prescribed by the PRR
- and a risk is transferred for the standard premium set by the insurer.
- If the risk has a record which shows Highway Code infractions, the PRR requires that the standard premium in the insurer's rate manual be surcharged by a specified percentage.
2) Informing the Broker
- You would not advise the broker in this scenerio. - Insureds are very seldom aware that the PRR has been instrumental in the process of obtaining and supporting the coverage that they have obtained;
- the PRR is, therefore, almost unknown to the public.
- As a matter of fact, the procedure followed for the transfer of a risk to the PRR is such that many brokers do not even know which of their risks have been transferred by the insurer.
3)Term of Policy
- Eligibility would be determined by the insurer.
- The insurer may transfer a risk to the PRR where coverage is granted
- or withdraw it from the PRR at any time within a policy period.
- The insurer only needs to submit the appropriate information electronically
- or on a paper form according to the stipulated procedures,
- with the premium calculated on a pro rata percentage basis for the term transferred.