Card Set Information

2014-04-12 16:07:06
Auto Insurance
Show Answers:

  1. At-fault claim:
    • claim paid in respect of that liability for which the driver is wholly or partially at fault
    • claim made in respect of which the insurer has reasonably determined that a payment will or is likely to be made as result of the fault, whole or partial, of the driver
    • does not include a claim repaid in full by the policyholder within 90 days after paid
  2. Driving experience:
    • combined time during which a person has had a valid operator’s license in Canada and in a country outside Canada, if the person provides evidence satisfactory to the insurer
    • does not include time during which the person held a learner’s permit or time during which license was suspended, cancelled or revoked
    • inexperienced driver means a driver who has less than 8 years’ driving experience
    • if a person obtains a driver training certificate before or within 2 years after obtaining a license, driver is considered to have 2 years of experience (re-start count at “real” 2 years)
  3. Steps to determine grid premium
    • Relevant and occasional drivers
    • PPV = drivers: each driver must be matched to a vehicle
    • PPV > drivers: match each driver, then match again starting with driver with lowest %
    • PPV < drivers: highest rated driver matched first. Inexperienced driver may not be matched unless he is the principal driver. Remaining drivers are not matched unless they are inexperienced drivers, in which case they are considered occasional drivers. If more occasional drivers than PPV, start with highest rated and only match 1 occasional / PPV
  4. Locating the correct grid step
    • start at 0
    • +5 for each at-fault claim during last 6 years
    • -1 for each year of driving experience with no at-fault claim (max 5)
    • if no at-fault in past 6 years, -1 for each year of driving experience (max 15)
    • if at-fault claim during term, +5 for each claim
    • if no at-fault during term, -1 per year of experience (max 15)
    • if no at-fault for past 6 years at renewal, grid must be no more than zero
  5. Computation of Grid Premium
    • determine base premium based on territory and coverage choice
    • P = A + (A x B) where A is based on grid step, B = surcharge for driving convictions
    • multiply base premium by P
    • Grid premium = premium for relevant driver + 25% of premium for occasional driver
    • A goes from 50% (-15 to -10) to 100% (0) to 338% (+15), then +23% for each step above
  6. Territories:
    • City of Calgary
    • City of Edmonton and surroundings
    • rest of Alberta
    • differentials between Edmonton and Calgary were eliminated by 2007
    • base premium for rest of Alberta is 20% less