What are the main duties of the Groupement des assureurs automobiles(GAA)?
The Main duties of the GAA are
a) to establish a mechanism to enable every automobile owner to find an authorized insurer with whom he or she may purchase liability insurance;
Each insurer doing business in Quebec has agree to provide this insurance to any automobile owner requesting it - through the risk sharing plan called Plan de repartition des risques(PRR), if needed.
The purpose of the PRR is similar to the risk sharing pools managed by the Facility Association in other provinces. Both allow participating insurers to share the underwriting profit or loss and administrative costs of the pooled risks.
However, in Quebec, insurers may transfer any risk they have accepted through the regular market that does not meet their minimum underwriting standards. In other provinces, insurers transfer risk that meet their underwriting rules, but present higher than average risk of loss. (This topic is discussed in more detail in a previous chapter.)
b) to oversee collision repair appraisal;
Under the Automobile Insurance Act, the GAA has created a network of appraisal centres, which are subject to its standards, procedures, and regulatory measures. The goal is to keep premiums reasonable, and to minimize compensation costs by using precise and professional appraisal techniques.
c) to establish and publish a standardized accident report form; and
d) to establish and administer a direct compensation agreement.