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Definition of fleet:
- group of no less than five automobiles under common ownership or management
- of which at least 5 are commercial vehicles, public vehicles, or vehicles used for business
- of which any that are subject to a lease for more than 30 days are leased to same insured
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Conditions under which an insurer must offer instalments option
- insurer & affiliates insured at least 10,000 PPV in ON during previous year
- contract is written on Ontario Automobile Policy 1 or Ontario Policy Form 2
- contract does not insure a commercial vehicle or public vehicle
- contract does not insure 5+ vehicles that are under common ownership of management
- total annual premium payable exceeds $300
- insured has not had more than one automobile insurance policy terminated by an insurer for non-payment of premium during the 36 months before the contract takes effect
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Authorized pre-requisites for instalment premium:
- insured make an initial payment equal to 2 monthly instalments of the premium
- agree to make all payments by pre-authorized payments
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Maximum interest rate for instalment premium:
- 3% for 12+ months contracts
- 1.5% for 6+ months contracts
- 0.5% for less than 6 months contracts
- insurers who isn’t required to permit instalment but chooses to is subject to same law
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No insurer can decline to issue, refuse to renew or terminate contract solely because:
- an insured is or was insured by FA
- another insurer declined to issue or renew another contract
- existence of physical or mental disability
- number of persons who would become insured persons or their state of health
- credit information
- late payments on a contract that wasn’t terminated, optional benefit
- non-at-fault claims. claims other than collision or upset
- group marketing plan terminates or insured ceases to be a member
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Prohibited risk classification elements:
- past claims arising out of accidents occurring on or after Sept 1st, 2010 < 25% at-fault
- medical plan providence coverage to an insured
- income continuation plan, sick leave plan
- lapse in automobile insurance coverage, except non-payment termination, driver license suspension, accident or conviction that wasn’t reported to the insurer
- credit information (income, employment, occupation, credit card, rating, …)
- membership in an organized group unless > 100 members and meet requirements
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Settlement disclosure notice
- insurer’s offer
- description of benefits that may be available under Statutory AB Schedule
- statement that insured may, within 2 business days, rescind the settlement by delivering a written notice to the office of the insurer and returning any money received
- description of the consequence of the settlement on benefits including right to mediate, litigate, arbitrate, appeal or apply to vary, and tax implications
- statement advising insured to consider seeking independent legal, financial or medical aid
- statement for signature by the insured person
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