Ontario Manual Effective May 1, 2010 NB and July, 1 2010 REN

March 2010 TO: Holders of the Manual of Rules and Rates ONTARIO

REVISED RULES AND PRIVATE PASSENGER VEHICLE RATES EFFECTIVE MAY 1, 2010 (NEW BUSINESS) AND JULY 1, 2010 (RENEWALS)Facility Association has received approval from FSCO for an increase in Private Passenger Vehicle rates effective May 1, 2010 for new business and July 1, 2010 for renewals. Overall the rate change is a 12% increase, although policies may vary depending on individual circumstances. These amended rates also apply to other classes that use Private Passenger Vehicle rates. At the same time, revised Private Passenger rules will be implemented effective May 1, 2010. These rules include: Higher Liability limit available if required for contract of work (Rule 100) Reduced annual mileage and elimination of underage drivers under Class 01 (Rule 106) Clarification that Classes 01, 02 or 03 have no business use and Classes 01, 02, 03 or 07 have no commercial use (Rule 106) Revised approach to determining rate groups for older vehicles (Rule 110) Rule numbers are shown for ease of locating these changes in the Rules and Rates Manual; however, additional information may be located under other rules. For complete details on these and all rule changes, refer to the manual pages.SPECIAL NOTE: Since Facility Association no longer prints paper manuals, rate pages and manual pages will not be distributed. All information is now available on the Facility Association website www.facilityassociation.com.

This bulletin is being distributed by Servicing Carriers to whom all enquiries should be addressed.

January 2010 To: Holders of the Manual of Rules and Rates ONTARIO

2009 Private Passenger CLEAR Rate Group Tables Effective May 1, 2010 New Business and Renewals

As approved by Financial Services Commission of Ontario, Facility Association is introducing the 2009

Private Passenger CLEAR Rate Group Tables which become effective May 1, 2010 for new business and renewals in Ontario. With these tables, Facility Association is moving to 3 separate rate groups (1 for DCPD; 1 for Collision; 1 for Comprehensive or Specified Perils) and each vehicle model will now show the applicable 3 rate groups. Because this change to 3 separate rate groups has resulted in a shift of premium allocation between these coverages, rates have been adjusted accordingly by coverage and rate pages have been revised. In total, premiums are expected to remain unchanged; however, they may vary depending on individual circumstances.

SPECIAL NOTE: Since Facility Association no longer prints paper manuals, rate pages and pages for these Rate Group Tables will not be distributed. All information is now available on the Facility Association website www.facilityassociation.com.

This bulletin is being distributed by Servicing Carriers, to whom all enquiries should be addressed.

August 2009 TO: Holders of the Manual of Rules and Rates ONTARIO

REVISED PRIVATE PASSENGER VEHICLE RATES AND RULES EFFECTIVE NOVEMBER 1, 2009 (NEW BUSINESS AND RENEWALS)Facility Association has received approval from FSCO for an increase in Private Passenger Vehicle rates effective November 1, 2009 for new business and renewals. Overall the rate change is an 11% increase, although policies m ay vary depending on individual circumstances. These am ended rates also apply to other classes that use Private Passenger Vehicle rates. At the same time, revised rules will be implemented effective November 1, 2009. These rules include: All Perils coverage being discontinued and replaced with Collision and Comprehensive Allocation of chargeable accidents when th ere are policies through m ultiple Servicing Carriers Premium applicable for after market non-electronic equipment For complete information on these and all rule changes, refer to the attached manual pages. Included in the package are revised manual and rate pages for insertion in your manual. This bulletin is being distributed by Servici addressed. ng Carriers to whom all enquiries should be

May TO: Holders of the Manual of Rules and Rates ONTARIO COMMERCIAL SPECIAL RATING FACTORS EFFECTIVE AUGUST 1, 2009 (NEW BUSINESS AND RENEWALS)

2009

Facility Association has received approval from FSCO for a change in the Collision Special Rating Factors for Commercial Vehicles effective August 1, 2009 for new business and renewals. This change is applicable to vehicles of the following type/use: - Logs, Chips, Pulpwood - Sand, Gravel, Earth, Stone Also, effective August 1, 2009 new business and renewals, the m inimum deductible on Sand, Gravel, Earth, Stone trucks will become 10% of the list price new. In addition, recently distributed pages B9 and F4 contained printing errors: - Rule 107.B.4 should have shown m otorcycle not m otorhome as acceptable prior insurance for a motorcycle risk. - Rule 404.B.1 chart should have shown 2 not 3 as the driving record for a driver licensed 3 years with an M2 drivers licence. Attached are the am ended Com mercial Vehicles rate page 1 showing the f actors f or Collision effective August 1, 2009 and the revised m anual pages pertai ning to the m inimum deductible as well as the corrections mentioned above. This bulletin is being distributed by Servicing Carriers to whom all enquiries should be addressed. Att.

April To: Holders of the Manual of Rules and Rates ONTARIO

2009

Motorcycle and All Terrain Vehicle Rate Revisions Recreational Vehicle Rule Changes Effective July 15, 2009 New Business and Renewals Snow Vehicle Rate Revision Effective August 1, 2009 New Business and RenewalsFacility Association has received approval for a 17% rate increase on Motorcy cles and a 10% rate increase on All Terrain Vehicles effective July 15, 2009 for New Business and Renewals as well as an 8% rate increase on Snow Vehicles effective August 1, 2009. Since this reflects an overall increase in rate circumstances. level, policies m ay vary depending on individual

At the same time, revised rules for Recreational Vehicles will be im plemented effective July 15, 2009. These rules include: Amended minimum deductibles Fire deductible (END 40) applicable on all motorized recreational vehicles Elimination of driver training discount and new driver credit (Where the discount or credit exists already, it will be continued until the risk is no longer eligible under present rules.) All Perils coverage discontinued and replaced with Collision and Comprehensive For complete information on these and all rule changes, refer to the attached manual pages. Included in the package are revised manual and rate pages for insertion in your manual. This bulletin is being distributed by Servicing Carriers to whom all enquiries should be addressed.

Att.

January 2009 TO: Holders of the Manual of Rules and Rates ONTARIO

REVISED RULES AND PRIVATE PASSENGER VEHICLE RATES EFFECTIVE MARCH 15, 2009 (NEW BUSINESS AND RENEWALS)

Facility Association has received approval from FSCO for an increase in Private Passenger Vehicle rates effective March 15, 2009 for new business and renewals. Overall the rate change is a 9.2% increase, although policies may vary depending on individual circumstances. These amended rates also apply to other classes that use Private Passenger Vehicle rates.At the same time, revised rules will be implemented effective March 15, 2009. These rules include: Re-assigning at-fault accidents when the vehicle involved is no longer on the road Classes associated with confirmation of claims-free experience Amended minimum deductibles Elimination of discounts (Where a discount exists already, it will be grandfathered until the risk is no longer eligible under present rules) Simplified calculating driving record where there is a licence suspension Revised severity applicable to some convictions Driving Record 0 applicable without confirmed prior insurance

For complete information on these and all rule changes, refer to the attached manual pages. Included in the package are revised manual and rate pages for insertion in your manual. This bulletin is being distributed by Servici addressed. ng Carriers to whom all enquiries should be

August To: Holders of the Manual of Rules and Rates ONTARIO

2008

2008 Private Passenger CLEAR Rate Group Tables Effective December 1, 2008 New Business and Renewals

Attached are the 2008 Private Passenger CLEAR Rate Group Tables which becom December 1, 2008 for new business and renewals in Ontario. The entire Private Passenger Rate Group Tables are replaced by the attached pages.

e effective

As shown in previous Private Pa ssenger Rate Group Tables, a sym bol may appear beside some rate groups: The "check m ark" symbol indicates that the vehicle is equipped with an IBC-approved theft deterrent system . The sym bol is for your in formation only and will have no effect on the underwriting of these vehicles. These tables will be available on the Facility Association website ( www.facilityassociation.com) as soon as practicable. This bulletin is being distributed by Servicing Carriers, to whom all enquiries should be addressed.

July 2008 TO: Holders of the Manual of Rules and Rates ONTARIO

REVISED PRIVATE PASSENGER VEHICLE RATES EFFECTIVE OCTOBER 1, 2008 (NEW BUSINESS AND RENEWALS)

Facility Association has received approval from FSCO for an increase in Private Passenger Vehicle rates effective October 1, 2008 for new business and renewals. Overall the rate change is a 2% increase, although policies may vary depending on individual circumstances. These amended rates also apply to other classes that use Private Passenger Vehicle rates. Please insert the attached pages in your manual. Section B: Rate pages 1 - 93 This bulletin is being distributed by Servici addressed. ng Carriers to whom all enquiries should be

Att.

July 2008 TO: Holders of the Manual of Rules and Rates ONTARIO REVISED TAXI RATES, BUS RATES AND RULES EFFECTIVE SEPTEMBER 1, 2008 (NEW BUSINESS AND RENEWALS)

Facility Association has received approval from FSCO for increases in Taxi and Bus rates and some rule changes. All are effective September 1, 2008 for new business and renewals. Overall the following rate changes are applicable, although policies may vary depending on individual circumstances: Public Buses +7.22% Hotel and Country Club Buses +10.00% School Buses +10.31% Taxis +12.66% Rule changes include: Amended minimum deductibles Elimination of using unique FA applications A copy of vehicle ownership required with all applications Discontinuance of a special procedure for renewa l cancellations in outly ing areas without courier service Expanded list of convictions For complete information on these and all rule changes, refer to the attached manual pages. Please insert the attached pages in your manual. Only pages dated September 1, 2008 contain changes. Section A: A5-A10, A17-A20, A35-A36, A43-A44 Section D: D1-D2, D5-D6, D11-D12, D15-D16 Section E: E9-E13 (rate pages) This bulletin is being distributed by Servicing Carriers to whom all enquiries should be addressed.

Att.

November 2007 TO: Holders of the Manual of Rules and Rates ONTARIO COMMERCIAL SPECIAL RATING FACTORS EFFECTIVE DECEMBER 15, 2007 (NEW BUSINESS AND RENEWALS)In September, Facility Association released Commercial Vehicles rate pages effective December 15, 2007 for new business and renewals. We have now discovered that the page outlining th e Special Rating Factors contained an error in the factors applicable to vehicles of the following type/use: - Logs, Chips, Pulpwood - Sand, Gravel, Earth, Stone Attached is the am ended Commercial Vehicles rate page 1 showing the correct factors for Accident Benefits effective December 15, 2007. We apologize for any inconvenience this may have caused. This bulletin is being distributed by Servici addressed. ng Carriers to whom all enquiries should be

Att.

September 2007 TO: Holders of the Manual of Rules and Rates ONTARIO REVISED COMMERCIAL RATES AND 2007 COMMERCIAL RATE GROUP TABLES, EFFECTIVE DECEMBER 15, 2007 (NEW BUSINESS AND RENEWALS)Facility Association has received approval from FSCO for an increase in Com mercial Vehicle rates and the im plementation of 2007 Com mercial Rate Group Tables. Both are effective December 15, 2007 for new business and renewals. Overall there is an 8 % increase in rate level, although policies may vary depending on individual circumstances. This package contains: 2007 Com mercial Rate Group Tables (T he entire Commercial Rate Group Tables are replaced by the attached pages.) Revised Commercial Vehicle rate pages Page 1-Page 13 Please insert these new pages in your m anual. You m ay want to retain the current pages for som e mid-term transactions. The tables and rate pages will be ava ilable on the Facility Association website (www.facilityassociation.com) as soon as practicable. This bulletin is being distributed by Servici addressed. ng Carriers to whom all enquiries should be

Att.

August 2007 To: Holders of the Manual of Rules and Rates ONTARIO

2007 Private Passenger CLEAR Rate Group Tables Effective December 1, 2007 for New Business and RenewalsAttached are the 2007 Private Passenger CLEAR Rate Group Tables which becom December 1, 2007 for new business and renewals in Ontario. The entire Private Passenger Rate Group Tables are replaced by the attached pages. As shown in previous Private Pa ssenger Rate Group Tables, a sym bol may appear beside some rate groups: The "check m ark" symbol indicates that the vehicle is equipped with an IBC-approved theft deterrent system . The sym bol is for your in formation only and will have no effect on the underwriting of these vehicles. The 2007 Private Passenger Rate Group Tables will be available on the Facility Association website (www.facilityassociation.com) as soon as practicable. This bulletin is being distributed by Servicing Carriers, to whom all enquiries should be addressed. e effective

Att.

August 2007 To: Holders of the Manual of Rules and Rates ONTARIO

Ontario Snow Vehicle Rate Revisions Effective November 1, 2007 New Business and RenewalsFacility Association has received approval for a 9.5% overall rate increase on Snow Vehicles effective November 1, 2007 for New Business and Renewals. Since this reflects an overall individual circumstances. increase in rate level, policies m ay vary depending on

Please insert the attached revised rate pages F13 - F14 in the Recreational Section of your manual. (There is no change to page F13.) This bulletin is being distribut ed by Servicing Carriers, to whom all enquiries should be addressed.

Att.

FACILITY ASSOCIATIONSeptem To: Holders of the Manual of Rules and Rates ONTARIO ber 2006

CLEAR Rate Group Tables 2006 Private Passenger Vehicles Effective February 1, 2007 for New Business and RenewalsAttached are the 2006 CLEAR Rate Group Tables (private passenger vehicles) which becom e effective February 1, 2007 for new business and renewals in Ontario. The entire Rate Group Table is replaced by the attached pages. As shown in previous Rate Group Tables, two symbols may appear beside some rate groups: The "check m ark" symbol indicates that the vehicle is equipped with an IBC-approved theft deterrent system. The "flag" symbol indicates that a New Vehicle Assessment has been performed. The sym bols are for your inform ation only and w ill have no effect on the underwriting of these vehicles. This bulletin is being distributed by Servicing Carriers, to whom all enquiries should be addressed.

Att.

FACILITY ASSOCIATION Rule 1: Filed Underwriting RulesUnderwriting Rules A. The Insurers rules for declining to issue, terminating or refusing to renew a contract are: 1. A. Private Passenger Vehicles only The risk does not meet the definition of a residual market risk as defined in Rule 13. Other Automobiles The risk does not meet the object of the Facility Association which is to ensure the availability of automobile insurance, as required by law, in those provinces and territories of Canada in which the Association operates, to the owners and licensed drivers of motor vehicles who would otherwise have difficulty obtaining such insurance. 9. 8.

Section A General Rules & Procedures

A certificate of mechanical fitness and roadworthiness has not been provided in accordance with the Manual of Rules and Rates. Non-payment of premium for the current policy period (for purposes of termination only).

B. Rules for refusing to provide or continue a coverage are: 1. Optional physical damage shall not be provided where an Applicant or any person who is a regular or frequent operator of the vehicle, has, within the immediately preceding thirty-six months: i) When making a previous application for automobile insurance, given false particulars of an automobile to be insured to the prejudice of the insurer;

B.

2. 3.

The Applicant does not have an insurable interest in the vehicle. The vehicle is registered in a jurisdiction other than Ontario. (If the vehicle is registered in another jurisdiction in which Facility Association operates, the vehicle may be insured through an Agent/Broker and Servicing Carrier licensed in that jurisdiction.) The driver of the vehicle does not hold a valid operators licence. If the licence of the only driver is suspended, Facility Association shall provide a policy covering Comprehensive or Specified Perils cover only until there is a driver holding a valid operators licence. See Rule 31 - Suspension of Operators Licence and Rule 14 - Minimum Coverage in this section of the manual. The application is incomplete, has not been signed by the Applicant, or has not been bound by the Agent/Broker. The Applicant/Agent/Broker refuses to provide the sufficient valid information to write the risk. Sufficient valid information to write the risk includes data to properly rate the risk and to report the risk information in accordance with the Automobile Statistical Plan. The vehicle is not in the possession of the Applicant (i.e., has been stolen or cannot be located). This restriction is not intended to be used as a denial of a valid theft claim.

or ii) Knowingly misrepresented* or failed to disclose in an application any fact required to be stated therein;

or iii) Has contravened a term of an insurance contract or been convicted of fraud in relation thereto; or iv) Wilfully made a false statement in respect of a claim. 2. Optional physical damage coverage shall not be provided where an application for a branded vehicle (salvage or rebuilt) is submitted without a current safety certificate and current inspection with photographs. NOTE: No policy will be written for vehicles branded irreparable Where a vehicle is licensed for road use and is used on roads as well as used for race or speed tests, optional physical damage coverage shall not be provided. For DCPD coverage, a current appraisal must be provided.

4.

5.

6.

3.

7.

The Servicing Carrier shall refer all refusals or noncontinuance to the Facility Association prior to declining coverage.

* Misrepresentation means an applicant has either had a policy cancelled by registered letter for material misrepresentation or has had a claim denied for material misrepresentation.

Ontario 1 September 2008

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FACILITY ASSOCIATION

Rule 1: Filed Underwriting Rules (continued)F. C. Minimum Deductibles Optional physical damage insurance shall be provided at the following minimum deductible amounts: Number of Automobile Insurance Claims (All Perils, Collision, Comprehensive, Specified Perils) In prior 12 months 3 In prior 36 months 3 4 Deductible amount applicable to the coverage under In prior 60 months which the claims (fire and/or total were made theft) 2 $ 2,500 $ 1,000 $ 2,500 a) Private Passenger and Recreational Vehicles Optional Physical Damage coverage shall not be provided or continued for Private Passenger or Recreational Vehicles (excluding motor homes) valued at $325,000 or more. b) Commercial, Public Vehicles and Motor Homes Optional physical damage coverage shall not be provided or continued for Motor Homes, Commercial or Public Vehicles valued at $500,000 or more. Optional physical damage coverage shall not be provided for Off-Road Commercial Vehicles e.g. logging trucks used solely in the bush. c) Buses Optional physical damage coverage shall not be provided or continued for buses valued at $750,000 or more.

Rule 2: Premium Quotations5 or more 5% of LPN (minimum deductible $5000) No coverage offered The Agent/Broker is responsible for calculating premiums in accordance with this manual, including the base premiums applicable to experience (fleet) rated risks. Experience rated risk premiums are calculated at Driving Record 0. Where there is any doubt on the matter the Servicing Carrier will be pleased to assist in establishing risk classifications, but the Servicing Carrier shall not make premium quotations except where the manual does not provide for the particular coverage required. The Servicing Carrier shall require clarification from the Agent/Broker if the information on the application contradicts the quoted premium.

3 or more

ANY HIGHER MINIMUM DEDUCTIBLE PROVIDED FOR IN THIS MANUAL SHALL OVERRIDE THESE AMOUNTS. Note: Higher deductibles shall only be imposed when there have been a sufficient number of claims under any given coverage to warrant such application. For example one collision loss and three comprehensive losses in the previous 12 months shall result in the application of a $1,000 deductible on comprehensive only. Only if the insured has sustained three collision losses as well, would $1,000 deductible be applied to the collision coverage.

Rule 3: Risks not specifically provided forFor any type of vehicle, coverage or use that is not specifically provided for in this Manual, Agents/Brokers apply to their Servicing Carrier and provide details in writing when requested to do so. Where the Servicing Carrier requires assistance in these circumstances, the Servicing Carrier will contact FA Head Office.

D. Vehicles insured for Comprehensive / Specified Perils only shall be renewed once and then lapsed at the next renewal if there is no other vehicle with road coverage on the policy. Vehicles insured for Comprehensive / Specified Perils only shall not be written as new business. E. Certain OPCF Policy Change Forms require a signature. Where no signature is obtained, the policy may be cancelled in accordance with the Statutory Conditions or issued without the policy change or the policy change may be deleted and the policy rerated accordingly. (Also see Rule 15 - Policy Change Forms/Wordings)

Note: Excess Automobile Liability Insurance (POL 7) or Lessors Contingent Insurance (POL 8) are not available through Facility Association.

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Ontario 15 March 2009

FACILITY ASSOCIATION Rule 4: Method of Rating for More Than One UseWhenever there are two or more uses of a vehicle, or it is possible to rate the use or type of risk in two or more ways, rate for the use with the highest percentage of exposure. It should be noted that commercial classes anticipate a certain percentage of personal use. Where specific instructions are given elsewhere in this manual concerning rating of vehicles in these circumstances, those instructions shall take precedence. Exception: Vehicles carrying hazardous goods are always rated for hazardous exposure regardless of percentage of use. Note: For vehicles with Slip tanks (vehicles with removable tanks to carry combustible fuel), if the principal use of the vehicle is not the carriage of petroleum products, the vehicle must be rated according to its principal use and Class 48 may not be used. How to calculate premium Where it is necessary to calculate premium for comparison purposes it shall be done in the following manner. The total premium for each use or method of rating including Service Fee must be calculated separately and then compared and the highest total premium will be used. The Service Fee follows the section of the manual from which the premium is obtained except when the Service Fee for one of the premiums to be used for comparison purposes is capped. In those cases, the uncapped Service Fee shall be used. Examples a) The insured is over 25 and has a light pickup truck used for courier purposes. The insured has no other vehicle. The vehicle is used 60% for courier purposes and 40% for pleasure. Rate the vehicle as though used for courier delivery. The insured is over 25 and has a light pickup truck. During the day he uses it to make business calls to clients of the company he works for as a salesman. During the night he works for another company delivering pizza. The vehicle is used 60% for business calls, 20% for pizza delivery and 20% for pleasure. Rate the vehicle as though used for business call (Class 07). The vehicle is used for 80% of the time for driver training and 20% of the time for pizza delivery. Rate the vehicle as though used for driver training. The insured has a light van and no other vehicle. Insured is over 25 and principal operator, with a 19 year old son as occasional driver. The van is used in the insureds painting business commercial class 35. The vehicle is used 55% for pleasure and 45% of the time in the painting business. Rate the vehicle as though used for pleasure (class 01 + 06).


elsewhere, then the commercial rate class would automatically be used in each of these cases. The name of the insuring company and policy number for the pleasure use vehicle must be provided to the Servicing Carrier at the time of new business and on subsequent renewals as required by the Servicing Carrier.

Rule 5: Manual RatesThe rates published in this Manual are for annual policy terms. For six-month policies charge 52% of the annual premium except for motorcycles/mopeds, snow vehicles and antique vehicles. See the Recreational Vehicle section for rating instructions on these vehicles. For policies eligible for the monthly pay plan, there may be an additional charge. Contact your Servicing Carrier.

b)

c)

d)

It should be noted in example d, that were the insured to be rated as the principal operator of a pleasure use vehicle insured through FA or

Ontario 1 February 2007

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FACILITY ASSOCIATIONlimit, the increased limit factors can be found in those sections. If the manual does not provide the necessary increased limit factor, contact your Servicing Carrier.

Rule 6: Premium RoundingThe premium for each coverage shall be rounded to the nearest whole dollar. A premium that includes 50 cents or more will be rounded up to the next whole dollar. E.g. 46.56 shall be rounded up to $47.00 and 46.44 will be rounded down to $46.00. This applies to all premium transactions, including refunds except where the policy is cancelled by registered letter at the request of the Agent/Broker or by the Servicing Carrier. In that event, the return premium shall always be rounded up to the next whole dollar ($45.10 will be rounded up to $46.00).

Rule 10: All Perils CoverageThe premium for All Perils coverage is calculated by adding the Collision premium to a specified percentage of the Comprehensive premium. See rate pages.When a rule, surcharge or discount applies to a Collision/Comprehensive coverage/premium, it also applies to the respective Collision or Comprehensive portion of the All Perils coverage/premium. This does not apply when the discount being applied results from END 13C.

Rule 7: Minimum Premium Minimum Retained PremiumExcept where otherwise stated in any other section of this Manual, the minimum premium for any automobile policy or renewal and, the minimum retained premium in the event of cancellation of the policy, is $25 excluding Service Fee regardless of the term of insurance. The minimum retained premium must be stated on the declaration page of the policy. Note: The minimum premium and minimum retained premium for garage policies (OAP4) is $250.00.

Rule 11: Binding Coverage New PoliciesA. Requirements/Procedures for binding new policies 1) The Agent/Broker must have a fully completed application signed by the registered owner(s) of the vehicle(s) detailing all information on the risk. Supplementary questionnaires, if required, must be completed and signed by the Applicant. If the Servicing Carrier is required to have a drivers permission to obtain a Driver Record Abstract, that written authorization must accompany the application Before binding coverage the Agent/Broker must either: a) Collect or assume responsibility for the full indicated premium (experience rated risks at Driving Record 0) or b) Where a vehicle qualifies for the monthly pay plan, collect or assume responsibility for the first two months payments, and complete the documentation required by the Servicing Carrier (for further details contact your Servicing Carrier)

Rule 8: Policy TermEvery policy and renewal shall be issued for a term of either one year or six months. See Rule 33 - Purchasing Vehicles in Jurisdictions Where FA Does Not Operate. A short term policy may be issued in the event that the vehicle/item is in transit in or through the jurisdiction, i.e. a single trip from a location within a jurisdiction in which Facility Association operates to another location within a jurisdiction in Canada or the continental U.S.A. The Servicing Carrier may accept an application for a short term policy and issue the policy accordingly or accept an application for a 6 or 12 month term and a cancellation voucher signed to provide coverage for only the shortened term. The premium for the policy shall be calculated using the highest rated territory of the originating jurisdiction and the applicable short term table in this manual, subject always to the minimum retained policy premium. Policies subject to Rule 38: Fleets cannot be issued for a term of less than 12 months.

2)

or c) Obtain a fully completed premium finance contract together with the full down payment required and promptly send that contract to the finance company office.

Rule 9: Liability LimitsIf it is necessary to provide a liability limit that falls between two limits for which premiums or limit factors are indicated in this Manual, the premium or limit factor applicable to the higher of those two limits shall be used. Limits of liability in excess of $1,000,000 may only be provided under certain circumstances. See Coverages in the Private Passenger, Commercial, Public and Recreational sections. Where it is required and permissible to provide a higher Liability A8

Note: 1. If, within the past 5 years, there is an outstanding premium for the same insured owing to any Servicing Carrier on a previously cancelled FA policy, full applicable premium on the new policy in the form of certified cheque or money order must accompany the application. 2. If such information regarding an outstanding premium for the same insured owing to any Servicing Carrier on a previously cancelled FA policy is discovered within 60 days of the new FA policy inception date, full payment shall be required within 30 days. If full payment is not received, the policy shall be cancelled by registered letter.


FACILITY ASSOCIATION Rule 11: Binding Coverage - New Policies(continued) 3) The insurance shall take effect as of the time and date the coverage is bound. Under no circumstances may coverage be shown as effective prior to the date and time of completion of the application form. Therefore coverage may not be bound as of 12:01 am on the date the application is signed. However, except when the binding time is 12.01 a.m. of a future date, the policy shall be shown as effective at 12.01 a.m. on the day following the date coverage was bound. The premium rates to be applied are those in effect on the binding date. For example: a) Coverage is bound at 1:00 p.m. on June 1. The application is signed on June 1. The policy shall be issued showing an effective date of 12:01 a.m. June 2. However, the coverage is in effect as of 1:00 p.m. on June 1. b) Coverage is bound as of 12:01 a.m. June 1. The application was signed on May 29. The policy will be issued showing an effective date of 12:01 a.m. June 1.


Rule 12: New PoliciesA. Application Form Every application for insurance must be made on a current approved Standard Application Form and must be fully completed and signed by both the applicant and Agent/Broker where required or as prescribed under Rule 12:H Computer Generated Application Forms. Commercial, Garage, Public, Experience-rated and some speciallyrated risks will require completion of supplementary questionnaires. A copy of the ownership of all owned vehicles being insured, regardless of vehicle type or use, will be required with the application. Where the vehicle is newly-purchased, a copy of the ownership is required within 30 days of binding coverage. B. Owners Policy (APP 1) A current approved Standard Application Form (APP 1) is required. The Agent/Broker must indicate the time and date that coverage is bound. C. Garage Policy (APP 4) A current approved Standard Garage Automobile Application Form (APP 4) and the Facility Association Garage Rating/Underwriting Supplement are required. D. Drivers and Non-owned Policies (APP 2 and 6) The Servicing Carriers own application forms shall be used and must be clearly marked Facility Association Residual Market Refer to Rule 701: POL 2 Drivers Policy and Rule 702: POL 6 Non-owned Automobile Policy for information required on these applications and details of the policies. NOTE: The temporary and permanent liability cards for the Drivers Policy must show under vehicle Drivers Policy. E. POL 7 Excess Automobile Liability Insurance is not available. F. POL 8 Lessors Contingent Automobile Policy is not available.

4)

If the application form cannot be sent to the Servicing Carrier on the date on which coverage was effected, it must be sent the next working day. The Servicing Carrier will normally issue the policy within 30 days of the effective date. If the Agent/Broker does not receive the policy and the full term Liability Card within that time, a further temporary Liability Card must be issued by the Agent/Broker and the Servicing Carrier must be contacted immediately to determine the status of the policy. Before optional physical damage coverage can be bound, a vehicle branded as salvage or rebuilt must be inspected at the insureds cost and a copy of the inspection report with photographs as well as a safety certificate must be submitted with the application.

5)

6)

B. Term of binding new policies The term of binding and of the Temporary Liability Card is 30 days. The Temporary Liability Card may not be amended to indicate a longer period. If a short-term policy is to be issued, the Temporary Liability Card shall be amended to indicate the shorter period.


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FACILITY ASSOCIATIONI. Applicants Signature The applicants signature shall be provided on the Facility Association manual application form or the computerized application form at the time of binding whenever possible. If the applicants signature cannot be obtained at the time of binding, the Servicing Carrier shall allow the Agent/Broker 30 days to obtain a signature on the original application provided the Agent/Broker assumes responsibility for the full indicated premium. In the meantime, the Agent/Broker must send a copy of the completed but unsigned application to the Servicing Carrier. If a signed copy of the application is not received by the Servicing Carrier within the 30 day time period, the Servicing Carrier shall immediately cancel the policy by registered letter. The Agent/Broker shall be responsible for the full indicated earned premium for the time on risk.

Rule 12: New Policies (continued)G. Faxed Applications Fully completed and signed current approved Standard Application Forms submitted by fax are acceptable in lieu of original applications. Where required, these applications must be accompanied by the appropriate questionnaires or supplements. A copy of the temporary liability card must also be faxed to the Servicing Carrier. Where the original application has been submitted without signature, a signed and faxed copy of the application is acceptable to complete the signature requirement. H. Computer Generated Application Forms These application forms are acceptable but must be in the standard format approved by the applicable regulatory authority and must include all information that is required to be provided on the current approved Standard Application Form. The computerized application must be signed and dated by the applicant as well as the Agent/Broker.

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FACILITY ASSOCIATION Rule 12: New Policies (continued)J. Name of the Insured Insurance contracts must be made with individuals that have both the capacity to contract and are legal entities. If the applicant is not an individual(s), the name(s) appearing on the policy must be that of a legal entity i.e., a limited company or partnership. The name of the insured must include or be the same as the name on the vehicle registration. For garage and non-owned risks, the name of the business registered with the appropriate municipal, provincial or federal authority must be used. For example: The vehicle is registered to Pat Doe who is operating Pats Garage. The name of the insured on POL 1 may be shown as Pat Doe o/a Pats Garage. Two or More Names as Registered Owner of the Vehicle: Where an application is received for vehicle(s) registered in two names, such as Pat and Drew Doe, the application must be signed by both parties. In the event the policy is to be cancelled at the insureds request, both signatures are required on the request for cancellation. If the situation is other than the Applicant and spouse, refer to the Servicing Carrier prior to quoting or binding to verify the rating. Two or More Vehicles Registered to Different Names: If the applicant has vehicles leased from different leasing companies or, one vehicle registered for example in the fathers name and one in the sons name, separate policies must be maintained. If the applicant has vehicle(s) leased from the same leasing company and owned vehicle(s), separate policies may not be necessary. Exception: If the vehicles are separately registered to an Applicant and his or her spouse only, they may be insured under the same policy. Both must sign the application and any request to cancel a policy or delete a vehicle or coverage. a)


K. Other Insurance If there is any other insurance in force in respect of a risk: Binding shall not be made effective before the expiry of that other insurance. If that other insurance is to be cancelled, a Liability Card may not be prepared before the insurer concerned has issued the notice of cancellation, or the insured has signed the request for cancellation as the case may be.

b)

L. Verification of Driving History In order to verify the driving history, the Servicing Carrier is required to obtain the following before confirming the premium: a) Driver Record Abstract obtained from the appropriate government department in each Canadian or U.S. jurisdiction in which the driver has been licensed in the previous three years. On experience (fleet) rated risks, the abstract is only required if vehicles on the policy that carry Collision or All Perils coverage do not qualify for fleet rating of that coverage. The abstract will then be required to establish the Collision or All Perils premium. Driver Record Abstracts are not to be obtained for the operators of any Snow Vehicles, Dirt Bikes, All Terrain Vehicles or Antique Vehicles to be insured. Previous Insurance History must be obtained on all drivers. This is not required for Snow Vehicles, Dirt Bikes, All Terrain Vehicles or Antique Vehicles. See special instructions under Fleets and the Garage section. This may be an electronic report ordered from a service provider, letters from previous carriers or telephone calls to previous carriers (which must be properly documented on file including name of persons spoken to, date, time etc.).

b)

Where it is discovered in the middle of the policy term, that a single policy has been issued where the policy has two (or more) vehicles, one registered in one name and one in another name, both signatures shall be required on any subsequent request for cancellation of the policy or deletion of a vehicle or coverage. Separate policies must be issued at the time of next renewal.

If the information received is different from that reported on the application, to the extent that the premium requires amendment, the policy shall be issued at the revised premium and coverage or the Servicing Carrier shall promptly issue a correcting policy change.


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FACILITY ASSOCIATIONc) In the case of a new application, a policy may not be issued for Comprehensive or Specified Perils coverage only.

Rule 13: EligibilityBefore submitting an application for coverage for a Private Passenger vehicle, the Agent/Broker must determine if the risk is eligible for insurance with Facility Association. If the risk is eligible (see Private Passenger section), the application to the Servicing Carrier must be accompanied by a fully completed written refusal letter from a voluntary market insurer showing a reason for refusal that has been filed with the appropriate regulator. If the application is not accompanied by a written refusal letter, or is accompanied by an incomplete refusal letter or a refusal letter with an invalid reason, it shall be assumed that the risk does not qualify as a Residual Market risk. The Servicing Carrier shall immediately issue the policy and the appropriate registered letter of cancellation and inform the Agent/Broker so that alternate coverage can be arranged. The Servicing Carrier may allow the Agent/Broker up to 10 days to provide the refusal letter before proceeding with cancellation.

Note: a, b or c above is not applicable for the following: Vehicles for which proof of insurance is issued or filed. Recreational vehicles to which the Recreational section applies. Vehicles that were never intended to be driven (e.g. vehicles in a collection). Vehicles held for sale whether or not on an auto dealers lot Where automobile liability insurance is provided by the voluntary market. Explanations: Temporarily: May be defined as a limited time only, as distinguished from that which is perpetual or indefinite in duration. There is an anticipated end point to the vehicle being out of use. Agent/Brokers must indicate on the application or policy change request what the anticipated end date is, whether that is 3, 8 or 36 months from the date of the request. Out of use: The vehicle will not be driven either by the insured or by garage personnel or potential purchasers. In storage: The vehicle is not readily available for use e.g. the plates have been removed, the battery has been removed etc. The Agent/Broker must confirm on the application or policy change request that the vehicle is out of use and in storage. If moving coverages are not added to the vehicle by the anticipated end date, the vehicle shall be renewed once and then lapsed at the next renewal if there is no other vehicle with road coverage on the policy. If Third Party Liability and Accident Benefits coverage is removed or suspended more than twice in one year, then removal of those coverages will not be permitted until the following renewal. It is not necessary to remove the license plate from the vehicle while coverages is removed or suspended.

Rule 14: Minimum CoveragePolicies are required to provide at least the statutory minimum coverage applicable to the jurisdiction in which the vehicle is registered except as indicated below: Exception When an automobile is temporarily out of use and in storage: a) Coverages other than Comprehensive or Specified Perils may be suspended by means of END 16, for those vehicles that are temporarily laid up. This policy change does not suspend coverages that relate to driving other vehicles. The policy change may be used in respect of most private passenger and commercial-type vehicles. In no event shall a refund be granted for any cancellation period of less forty-five (45) consecutive days. Suspended coverages are reinstated by means of END 17. b) In the case of an existing policy that includes All Perils or Comprehensive or Specified Perils coverage, coverages other than Comprehensive or Specified Perils may be deleted.

Note: END 44R may remain on a policy only where moving coverages have been suspended by means of END 16. If all coverages except Comprehensive or Specified Perils are deleted entirely, END 44R must be deleted as well. END 16/17 is not available on experience rated risks.

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FACILITY ASSOCIATION Rule 16: Policy Changes (continued)For example: The vehicle has been written off in a claim June 1. On September 1 the Servicing Carrier receives a request to delete the vehicle effective June 1. Upon checking with the claims department, the Servicing Carrier ascertains that salvage was signed over to the claims department on June 15. However, the insured had a rental vehicle covered under the policys temporary substitute auto coverage until June 20. The Servicing Carrier shall delete the vehicle effective 12:01 a.m. June 21. e) In the event the insured has placed coverage through the voluntary market, upon receipt of a copy of the replacing policy declaration page or permanent Liability Card, the Servicing Carrier shall delete effective the date that the replacement coverage took effect.


G. Eligibility for Additional Vehicles If the request for change includes an additional Private Passenger vehicle, a fully completed written Refusal Letter from a voluntary market insurer must accompany the change request. If the risk is not eligible for the Residual Market, the risk shall not be insured in the Residual Market. H. Midterm policy change premium calculation In regard to the period licensed, period of ownership, the period since the date of an accident, the period since the date of a conviction, the rating is always based on the position as at the effective date of the policy period, (or, in the case of a subsequent addition/substitution of a driver or addition of a vehicle as at the addition/substitution date). Mid-term rerating is NOT permissible in respect of changes that occur in regard to those matters during the period of insurance merely because of the lapse of time. Mid Term change due to age is permissible, provided a request is received by the Servicing Carrier within 30 days of the birthday. If the request is received after 30 days, then the change will be effective at 12.01am following the date the Servicing Carrier receives the request, and back dating will not be permissible. Rates to be used Addition of a vehicle: Rates in effect at the effective date of the transaction Addition of coverage or other mid-term transactions: Rates in effect at the start of the policy period Method of premium calculation: Premiums for midterm policy changes are calculated pro-rata by using the Day Table except in the case of snow vehicles, motorcycles/mopeds and antique vehicles. For those vehicles, Short Term tables 3 and 4 are to be used for all coverages except Comprehensive/Specified Perils for which the Day Table is used. Minimum premiums for midterm changes: A minimum additional premium of $5 shall be charged for any transaction that includes one or more of the following, regardless of the period of insurance: addition of a vehicle or a coverage increase of a Liability limit decrease of a deductible Note 1: Any additional premium of less than $5 may be waived by the Servicing Carrier unless mentioned above. Return premiums may not be waived. Note 2: When a vehicle, not newly acquired, is substituted for another on the policy or added to the policy for less than 7 days, there will be a $50 charge for each such transaction in excess of 2 in a 30 day period or more than 12 in a 12 month period.

Servicing Carriers shall proceed with cancellation as outlined in a) or b) unless the Servicing Carrier is aware or is made aware, that the circumstances outlined in points c), d) or e) exist.

F. New or Replacement Driver If the change includes an additional or replacement driver, the Servicing Carrier shall be required to verify the driving history by ordering: a) Driver Record Abstract obtained from the appropriate government department in each Canadian or U.S. jurisdiction in which the new or replacement driver has been licensed in the previous three years. On experience rated risks, the abstract is only required if vehicles on the policy that carry Collision or All Perils coverage do not qualify for fleet rating of that coverage. The abstract will then be required to establish the Collision or All Perils premium. Previous Insurance History Report for any driver added to the policy. This is not required for Snow Vehicles, dirt bikes, All Terrain Vehicles and Antique Vehicles.

b)

If the information received is different from that reported, to the extent that the premium requires amendment, the Servicing Carrier shall promptly issue a correcting policy change.


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Rule 17: RenewalsA. Before issuing a Renewal: If the renewal involves a vehicle for which proof of insurance has been filed or is required, see Rule 27: Proof of Insurance. Experience Rated, Garage and Commercial Risks may require the Agent/Broker to determine whether the information on record and/or coverages need revision or updating. A Driver Record Abstract must be obtained for those risks where eligibility or rating is dependent upon driving history. These must be ordered on all drivers prior to every renewal. If coverage cannot be placed in the voluntary market and a fully completed Refusal Letter is submitted to the same Servicing Carrier by the same Broker along with a memo requesting renewal, prior to the expiry date of the policy, a renewal or new policy (Servicing Carriers discretion) will be issued. Direct Writers The Servicing Carrier shall arrange an offer to replace coverage with the voluntary market segment of its operation. In the event that the voluntary market segment has filed a ground to decline the risk, a fully completed Refusal Letter must be filed with the Servicing Carrier segment of the operation prior to the expiry date of the policy, and a Residual Market renewal may be issued. C. Accidents Occurring Between Renewal Process Date & Effective Date Once a renewal or offer to renew has been processed, and accepted by the insured, if the Servicing Carrier receives notice of an at-fault loss that occurred prior to the renewals effective date, the Servicing Carrier shall not amend the renewal rating accordingly but charge for the at-fault loss on the next renewal. D. Renewal Processing 1. Other than Direct Billing Servicing Carrier Responsibilities The renewal documents shall be issued by the Servicing Carrier and must reach the Agent/Brokers address no later than 45 days prior to the policys current expiry date.

Abstracts must be ordered on 6 month renewals as well as 12 month renewals

Renewals shall only be offered on policies with annual or six month terms. B. Risks Not Eligible for Renewal The Servicing Carrier must determine whether Private Passenger risks are eligible for renewal in the Residual Market. Risks meeting the following criteria may not be renewed for more than 2 consecutive twelve month terms or 4 consecutive six month terms: No at fault accidents assigned to the vehicle or its substitute within the 60 months preceding the commencement of the insurance No regular or frequent operator with any major, minor or serious convictions in the 36 months preceding the commencement of the insurance No cancellations for non-payment assigned to the applicant within the 36 months preceding the commencement of the insurance. All drivers of the vehicle hold a valid Canadian drivers licence.

A Report Card must be issued for every renewal of a private passenger vehicle and reach the Agent/Brokers address no later than 45 days prior to the policys current expiry date.

Where a policy covers more than one vehicle and one or more of the vehicles is not eligible for renewal, the renewal shall be issued for the eligible vehicles only and the remaining vehicles shall be nonrenewed. Notice of Non-Renewal (Other Than Direct Writers) The Servicing Carrier will issue a notice of non-renewal to the Broker at least 45 days prior to the policys current expiry date. Confirmation that the risk will be offered replacement cover in the voluntary market is required. If the confirmation is not received, the Servicing Carrier shall issue a notice of non-renewal directly to the insured.

Agent/Broker Responsibilities Before releasing any renewal documents the Agent/Broker must collect or assume responsibility for the full renewal premium. In the case of experience (fleet) rated risks, where renewals may be late due to missing information, the Agent/Broker is responsible for the premium calculated at Driving Record 0. For other than experience rated risks, if the Servicing Carrier is unable to issue renewals in the required time period, the Agent/Broker must issue a Temporary Liability Card to the insured and collect a downpayment based on the estimated annual premium for the upcoming renewal term. or

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Ontario 1 November 2009

FACILITY ASSOCIATION Rule 17: Renewals (continued)D. Renewal Processing (continued) If the risk is to be newly placed on monthly pay, collect the full downpayment required (two months premium in the form of cash, money order or certified cheque) and complete the required documentation (for specific details, contact your Servicing Carrier). or Obtain a fully completed premium finance contract together with the full downpayment required and promptly send that contract to the premium finance company. Renewal not accepted If the renewal is not accepted by the insured, the Agent/Broker must promptly return all the renewal documents (including Liability Cards) to the Servicing Carrier. (A written request from the insured acceptable to the Servicing Carrier, for cancellation effective renewal date shall be accepted in lieu of renewal documents.) If the documents are received by the Servicing Carrier within 15 days of the renewals effective date, a full refund shall be credited to the Agent/Brokers Facility Association account. If the documents are not received within 15 days, the renewal shall be cancelled on a pro-rata basis effective the date it is received by the Servicing Carrier. The Agent/Broker shall be responsible for earned premium or minimum retained premium whichever is greater. Renewal documents that have been returned to the Servicing Carrier for cancellation, may not be reissued unless the Servicing Carrier receives instructions no later than the renewals effective date and the Agent/Broker collects or assumes responsibility for the full premium as outlined above. If the renewal date has passed and the insurance is again required, there must be a new application and a new policy issued. In that event a refusal letter shall be required for private passenger vehicles.


A Report Card must be issued for every renewal of a private passenger risk and reach the insureds last known address no later than 30 days prior to the policys current expiry date. b. The payment due date must be clearly indicated on the offer to renew and must be the same as the policys current expiry date. c. If the required premium is received by the Servicing Carrier no later than 15 days after the payment due date, the Servicing Carrier shall promptly issue the appropriate renewal documents to the Insured. Payment Not Received If the required payment is not received by the Servicing Carrier within 15 days of the payment due date, the policy will be treated as though it has expired and the Servicing Carrier shall advise the Agent/Broker accordingly within the following 10 days. 3. Monthly Pay Renewals Servicing Carrier Responsibilities 1) Renewal Notice to the Agent/Broker: The renewal notice and/or renewal documents must reach the Agent/Broker no later than 45 days prior to the policys current expiry date. (A written request acceptable to the Servicing Carrier, for cancellation effective renewal date shall be accepted in lieu of renewal documents.) Notification of the new monthly installments to be debited to the policyholders bank account must be included. A Report Card must be issued for every renewal of a private passenger risk and reach the Broker/Agents address no later than 45 days prior to the policys current expiry date. 2) Renewal Notice to the Insured: The renewal notice and/or renewal documents must reach the insured no later than 30 days prior to the renewal date. (A written request acceptable to the Servicing Carrier, for cancellation effective renewal date shall be accepted in lieu of renewal documents.)

2.

Direct Billing Renewals Servicing Carrier Responsibilities a. For each policy an offer to renew shall be issued by the Servicing Carrier. The offer to renew must reach the insureds last known address no later than 30 days prior to the policys current expiry date.


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FACILITY ASSOCIATION2. Received by Servicing Carrier after 30 days If the request for a mid-term cancellation is received by the Servicing Carrier more than 30 days after the date the cancellation was requested to be effected, the cancellation shall take effect at 12:01 a.m. on the date that the cancellation request is received by the Servicing Carrier. For example: The insured requests cancellation of the policy to be effective September 5. The cancellation request is received by the Servicing Carrier on October 10. The Servicing Carrier shall cancel the policy effective 12:01 a.m. October 10. 3. Received by Servicing Carrier after 30 days and vehicle sold In the event that the vehicle has been sold, and a copy of the bill of sale, satisfactory to the Servicing Carrier is produced, the policy shall be cancelled the day after the vehicle is sold regardless of what that date might be. For example: The vehicle was sold June 5. The Servicing Carrier does not receive the request to cancel until September 5. If the insured can produce a satisfactory bill of sale, the Servicing Carrier shall cancel the policy effective 12:01 a.m. June 6. 4. In the event of a total loss In the event that a vehicle has been written off in a claim, cancellation shall be effected: a) or b) The date the policy is no longer providing coverage on a rental vehicle under the temporary substitute auto provision, if that date is later than the date salvage was signed over. For example: The vehicle has been written off in a claim June 1. On September 1 the Servicing Carrier receives a request to cancel the policy effective June 1. Upon checking with the claims department, the Servicing Carrier ascertains that salvage was signed over to the claims department on June 15. However, the insured had a rental vehicle covered under the policys temporary substitute auto coverage until June 20. The Servicing Carrier will cancel the policy effective 12:01 a.m. June 21. The day after the salvage is signed over to the insurer,

Rule 17: Renewals (continued)3) Monthly Pay Renewal Not Required If the renewal is not required and the renewal documents including liability cards are returned to the servicing carrer: Returned within 15 days If the renewal documents are returned to the Servicing Carrier within 15 days of the renewal effective date, a flat cancellation shall be allowed. Any premium collected for the renewal term shall be refunded to the policyholder when the installment has cleared the bank. Returned greater than 15 days If the renewal documents are not returned to the Servicing Carrier within 15 days of the renewal effective date, a pro rata time on risk charge shall be made for the period from the renewal date to the date they were received by the Servicing Carrier. If the renewal documents are not returned to the Servicing Carrier within 15 days of the renewal effective date and the first installment is returned by the bank due to a failed withdrawal attempt, the Servicing Carrier shall cancel the policy by registered letter for non payment.

Rule 18: CancellationsA. Cancellation - Effective Date 1. Received by Servicing Carrier within 30 days If the request for a mid-term cancellation is received by the Servicing Carrier within 30 days of the date the cancellation is to be effected, and no effective time is requested, the cancellation shall take effect at 12:01 a.m. on the date that it was requested to be effective. In the event that the cancellation was specifically requested to be effective at a time other than 12:01 a.m., the cancellation shall be effected at 12:01 a.m. the following day. For example: The insured requests a mid-term cancellation of the policy to be effective August 5. The cancellation request is received by the Servicing Carrier on August 20. The Servicing Carrier shall cancel the policy effective 12:01 a.m. August 5. If the insured requested cancellation to be effective at 3:40 p.m. on August 5, the Servicing Carrier shall cancel the policy effective 12:01 a.m. on August 6.

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Ontario 1 November 2009

FACILITY ASSOCIATION Rule 18: CancellationA. Cancellation - Effective Date (continued) 5. Coverage placed in Voluntary Market In the event the insured has placed coverage through the voluntary market, upon receipt of a copy of the replacing policy declaration page or permanent Liability Card, the Servicing Carrier shall cancel the policy effective the date that the replacement coverage took effect.


E. Cancellation Procedures For monthly pay plan policies, see Monthly Pay 1. Cancellation at the request of the Insured or the Premium Finance Company Broker Bill & Direct Bill Cancellation requested by the insured or the premium finance company under power of attorney must be made in writing in a format suitable to the Servicing Carrier. The Facility Association shall accept faxed signed and dated cancellation requests.

Servicing Carriers shall proceed with cancellation as outlined in points 1 or 2 unless the Servicing Carrier is aware or is made aware, that the circumstances outlined in points 3, 4 or 5 exist.

The return premium will be calculated as follows: Motorcycles, Mopeds, Snow Vehicles, and Antique Vehicles use Short Term Table 3 or 4 for all coverages except comprehensive/specified perils and Short Term Table 1 or 2 for comprehensive/specified perils subject to any applicable minimum retained premium All other vehicles being placed in the voluntary market calculate on a pro rata basis using the Day Table subject to any applicable minimum retained premium. All other vehicles not being placed in the voluntary market use Short Term Table 1 or 2 subject to any applicable minimum retained premium. If the policy is on Broker Bill, the Servicing Carrier shall credit the Agent/Brokers account with the unearned premium refundable unless the premium is financed through a premium finance company. If the Service Fee has been capped see Rule 23. 2. Cancellation at the request of the Agent/Broker Broker Bill When additional premium cannot be collected on original quote If the Agent/Broker cannot collect the additional premium arising from an increase to the premium originally quoted for new business: a) The Agent/Broker must advise the Servicing Carrier of the amount of premium collected (including Service Fee and tax) and request that a notice of cancellation be issued to the insured,

B. Policies with Lessors or Lienholders If the policy is being cancelled at the insureds request, a release of interest must be obtained from the lessor or the lienholder. In the event the Servicing Carrier does not receive a release of interest from the lessor, a notice is to be sent to the lessor by registered mail to advise that the policy is being cancelled and the effective date of cancellation. If no release is received from the lienholder, a notice is to be sent to the lienholder (registered mail is not required) to advise that the policy is being cancelled and the effective date of cancellation. If the policy is being cancelled at the Agent/Broker's request or Servicing Carrier's initiative by a registered letter, a copy of the registered letter must be sent to the lessor or lienholder by registered letter. C. Where Proof of Insurance Has Been Filed If proof of insurance has been filed, the notice period required by the authority must expire before cancellation can be effected, therefore the Servicing Carrier shall cancel the policy effective the date the notice period expires see Rule 27: Proof of Insurance. D. Policy is Financed Through a Premium Finance Company If a return premium is payable on a policy financed with a premium finance company, the gross refund is to be sent directly to the premium finance company regardless of the reason for cancellation. The Agent/Brokers account shall be debited with the amount of the premium refund sent to the premium finance company. or b) The Agent/Broker must have the policy signed off. The Facility Association shall accept faxed signed cancellation requests.

If the Service Fee has been capped see Rule 23.


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FACILITY ASSOCIATIONOnce the Renewal is issued If the insured shall not accept the renewal premium, the Agent/Broker shall advise the Servicing Carrier of the amount of premium collected and request that notice of cancellation be issued to the insured or shall have the insured sign off the policy. The Servicing Carrier shall then issue a registered letter of cancellation in accordance with the Statutory Conditions or issue the necessary cancellation documents. The earned premium shall be calculated pro-rata based on the previous term premium. 4. Flat Cancellation New Policy Flat cancellation of a new policy is not allowed except as provided under Rule 18.6 Flat Cancellation Exceptions. Additional Premium Policy change Flat cancellation of an additional premium policy change is not allowed. Renewal If renewal documents and liability cards are received by the Servicing Carrier within 15 days of the renewals effective date, a full refund shall be credited to the Agent/Brokers Facility Association account. If the renewal documents are not received within 15 days, the renewal shall be cancelled on a pro-rata basis effective the date it is received by the Servicing Carrier and the Agent/Broker shall be responsible for earned premium. (A written request acceptable to the Servicing Carrier, for cancellation effective renewal date shall be accepted in lieu of renewal documents.) 5. Cancellation of Renewals in Outlying Areas No longer applicable

Rule 18: CancellationE. Procedures (continued) 2. Cancellation at the request of the Agent/Broker Broker Bill, (continued)

If the Agent/Broker reports non-payment of the additional premium within 45 days of receiving notice of those increases, the earned premium for cancellation shall be calculated pro rata on the Agent/Brokers originally quoted premium. Otherwise, the earned premium shall be calculated pro rata on the revised premium. If a subsequent application is submitted by the same Agent/Broker to the same Servicing Carrier for substantially the same risk within 30 days of the effective date of cancellation of the first policy and, the Agent/Broker reports non-payment of additional premium, the earned premium shall be calculated pro rata of the revised premium.

When outstanding premium cannot be collected in all other cases Agent/Broker Responsibilities The Agent/Broker must advise the Servicing Carrier of the amount of premium collected (including Service Fee and Provincial sales tax) and request that a notice of cancellation be issued to the insured. Servicing Carrier Responsibilities The Servicing Carrier shall promptly issue a registered notice of cancellation in accordance with the Statutory Conditions. The earned premium for cancellation shall be calculated pro rata on the full term premium at the time of cancellation. When the Servicing Carrier issues a registered letter of cancellation, any unearned premium including service fee shall be refunded directly to the insured (unless the policy is financed through a premium finance company) and the Agent/Brokers account shall be debited for the amount of the refund and credited for the unearned premium. 3. Cancellation of Late Issued Renewals If the Servicing Carrier is unable to issue renewals in the required time period, the Agent/Broker must issue a Temporary Liability Card to the insured and collect a downpayment based on the estimated annual premium (or the estimated semi-annual premium for 6 month policies) for the upcoming renewal term.

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FACILITY ASSOCIATION Rule 18: CancellationE. Cancellation Procedures (continued) 6. Flat Cancellation Exceptions 1. Any policy returned to the Servicing Carrier complete with Liability Cards, prior to the effective date of the policy, may be cancelled flat. 2. If a cheque received for a new policy or renewal premium or, for the first installment for policies not on monthly pay, is not honoured by the bank, flat cancellation shall be allowed to the Agent/Broker provided that: a. b. c. the cheque was dated and issued on or before the effective date of the policy period concerned; and the cheque was immediately deposited; and in the case of a first installment, the amount of the cheque was sufficient to cover two months pro-rata premium or if financed under a contract with a premium finance company, the full down payment required under the terms of the contract; and the return of the cheque by the bank is promptly reported to the Servicing Carrier. A copy of the cheque front and back must be provided to the Servicing Carrier. However, on the registered letter of cancellation to the insured, the Servicing Carrier shall request payment of the full pro rata time on risk charge. 7. Cancellation initiated by the Servicing Carrier Non-Payment Direct Bill If premiums are paid directly to the Servicing Carrier, the Servicing Carrier may cancel an insurance policy for non-payment of premium. The earned premium shall be calculated pro-rata. Risk is not eligible for the Residual Market If the application is not accompanied by a fully completed written Refusal Letter from a voluntary market insurer or, if the Servicing Carriers review of underwriting information indicates that the risk does not qualify as a Residual Market risk, the Servicing Carrier shall promptly issue a registered letter of cancellation and, immediately inform the Agent/Broker so that alternate coverage can be arranged. See Rule 13 Eligibility. The earned premium shall be calculated pro-rata based on the originally quoted premium. Other Circumstances The Servicing Carrier may not otherwise cancel an insurance policy unless approval of such action is contained elsewhere in this manual or is obtained in the manner prescribed by the Associations Board of Directors.


F. Refund Calculation 1. Insureds Request For a policy cancellation requested by or on behalf of the insured (e.g. requested by a premium finance company) the premium refund shall be calculated in accordance with the Short Term Tables, unless a pro-rata cancellation is being allowed because the risk is being placed in the voluntary market. If the Service Fee has been capped see Rule 23. 2. Any Other Reason Where the policy is being cancelled for any other reason (e.g. by registered letter) the premium refund shall be calculated on a pro-rata basis using the Day Table.

Rule 19: Time on Risk TablesA. PRO RATA CALCULATION FOR POLICY CHANGES & CANCELLATIONS Using the Day Table on the next page: 1. Determine the percent that corresponds to the policys expiry month and day. For example March 26 is .233. Express the policys expiry date in a decimal format by combining the year and the fraction. March 26, 1999 would become 1999.233. 2. Determine the percent that corresponds to the effective date of the policy change or cancellation and express that date in a decimal format. If the effective date of policy change is November 20, 1998 that would be expressed as 1998.888. Note that if the effective date of change or cancellation is February 29, it should be treated as February 28. Subtract the second number from the first. Policy expiry date Policy change date Refund/change percentage 4. 1999.233 1998.888 .345

d.

3.

Where the policy is a six month policy, double the refund/change percentage. For a policy cancellation, the refund is calculated by multiplying the policy premium as of the cancellation date by the refund/change percentage. The policy premium is the full term premium for the coverage in force at the time of cancellation. Minimum retained premium must be taken into consideration. For a policy change, the additional/return premium is obtained by multiplying the full term premium for the change by the refund/change percentage

5.

6.

Ontario August 2001

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B. (Pro Rata) Day Table JanuaryDay Day of Percent of Month Year

FebruaryDay Day of Percent of Month Year

MarchDay of Percent Month

AprilDay Day Day of of Percent of Year Month Year

MayDay of Percent Month Day of Year

JuneDay of Percent Month Day of Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.003 .005 .008 .011 .014 .016 .019 .022 .025 .027 .030 .033 .036 .038 .041 .044 .047 .049 .052 .055 .058 .060 .063 .066 .068 .071 .074 .077 .079 .082 .085

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

.088 .090 .093 .096 .099 .101 .104 .107 .110 .112 .115 .118 .121 .123 .126 .129 .132 .134 .137 .140 .142 .145 .148 .151 .153 .156 .159 .162

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.164 .167 .170 .173 .175 .178 .181 .184 .186 .189 .192 .195 .197 .200 .203 .205 .208 .211 .214 .216 .219 .222 .225 .227 .230 .233 .236 .238 .241 .244 .247

60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

.249 .252 .255 .258 .260 .263 .266 .268 .271 .274 .277 .279 .282 .285 .288 .290 .293 .296 .299 .301 .304 .307 .310 .312 .315 .318 .321 .323 .326 .329

91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.332 .334 .337 .340 .342 .345 .348 .351 .353 .356 .359 .362 .364 .367 .370 .373 .375 .378 .381 .384 .386 .389 .392 .395 .397 .400 .403 .405 .408 .411 .414

121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

.416 .419 .422 .425 .427 .430 .433 .436 .438 .441 .444 .447 .449 .452 .455 .458 .460 .463 .466 .468 .471 .474 .477 .479 .482 .485 .488 .490 .493 .496

152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181

JulyDay Day of Percent of Month Year

AugustDay Day of Percent of Month Year

SeptemberDay of Percent Month

OctoberDay Day Day of of Percent of Year Month Year

NovemberDay of Percent Month Day of Year

DecemberDay of Percent Month Day of Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.499 .501 .504 .507 .510 .512 .515 .518 .521 .523 .526 .529 .532 .534 .537 .540 .542 .545 .548 .551 .553 .556 .559 .562 .564 .567 .570 .573 .575 .578 .581

182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.584 .586 .589 .592 .595 .597 .600 .603 .605 .608 .611 .614 .616 .619 .622 .625 .627 .630 .633 .636 .638 .641 .644 .647 .649 .652 .655 .658 .660 .663 .666

213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

.668 .671 .674 .677 .679 .682 .685 .688 .690 .693 .696 .699 .701 .704 .707 .710 .712 .715 .718 .721 .723 .726 .729 .732 .734 .737 .740 .742 .745 .748

244 1 245 2 246 3 247 4 248 5 249 6 250 7 251 8 252 9 253 10 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.751 .753 .756 .759 .762 .764 .767 .770 .773 .775 .778 .781 .784 .786 .789 .792 .795 .797 .800 .803 .805 .808 .811 .814 .816 .819 .822 .825 .827 .830 .833

274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

.836 .838 .841 .844 .847 .849 .852 .855 .858 .860 .863 .866 .868 .871 .874 .877 .879 .882 .885 .888 .890 .893 .896 .899 .901 .904 .907 .910 .912 .915

305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

.918 .921 .923 .926 .929 .932 .934 .937 .940 .942 .945 .948 .951 .953 .956 .959 .962 .964 .967 .970 .973 .975 .978 .981 .984 .986 .989 .992 .995 .997 1.00

335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365

A22

Ontario August 2001

FACILITY ASSOCIATION Rule 19: Time on Risk Tables (continued)C. SHORT TERM TABLES 1. MOTORCYCLES, MOPEDS, ANTIQUE VEHICLES Use short term table 3 for all coverages other than comprehensive/specified perils which are subject to short term table 1 or 2. 2. SNOW VEHICLES Use short term table 4 for all coverages other than comprehensive/specified perils which are subject to short term table 1 or 2. 3. ALL OTHER VEHICLES For a policy cancellation use short term table 1 or 2. For a short term policy, use short term table 1.


Cancellation requested by or on behalf of Insured 1. Referring to the Day Table calculate the number of days the policy has been in force. 2. Referring to Table No. 1 (in the case of an annual policy) or Table No. 2 (in the case of a six-month policy), determine the Percentage of premium. 3. Subtract that percentage from 100% to determine the refund percentage. 4. Apply the refund percentage to the full term policy premium as at the cancellation date. Minimum retained premium must be taken into consideration. Calculating premium for a Short Term policy: 1. Referring to the Day Table, calculate the number of days the policy has been in force. 2. Referring to Table No. 1, determine the Percentage of premium. 3. Apply that percentage to the annual premium. Minimum retained premium must be taken into consideration. SHORT TERM TABLE No. 2 SIX-MONTH POLICIES

SHORT TERM TABLE No. 1 ANNUAL POLICIES Days policy in force13 47 8 11 12 15 16 19 20 23 24 26 27 30 31 34 35 38 39 42 43 46 47 49 50 53 54 57 58 61 62 65 66 69 70 73 74 76 77 80 81 84 85 88 89 92 93 96 97 99 100 103 104 107 108 111 112 115 116 119 120 122 123 126 127 130 131 134 135 138 139 142 143 146 147 149 150 153 154 157 158 161 162 165 166 169 170 172 173 176 177 180

Percentage of premium8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

Days policy in force181 184 185 188 189 192 193 195 196 199 200 203 204 207 208 211 212 215 216 219 220 222 223 - 226 227 - 230 231 234 235 238 239 242 243 245 246 249 250 253 254 257 258 261 262 265 266 268 269 272 273 276 277 280 281 284 285 288 289 292 293 296 297 299 300 303 304 307 308 311 312 315 316 318 319 322 323 326 327 330 331 334 335 338 339 341 342 345 346 349 350 353 354 or more

Percentage of premium55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Days policy in force1 23 45 67 89 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86

Percentage of premium15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

Days policy in force87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 - 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 or more

Percentage of premium58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Ontario August 2001

A23


FACILITY ASSOCIATION2. For part of a month charge pro-rata of the percentage applicable to the complete month. For example, in respect of a motorcycle insurance that commences on June 7th: 30 days minus 6 days = 24; 24 divided by 30 = .8; .8 times 20% = 16% for the month of June. 3. The tables below apply to Canadian conditions. If there is use outside Canada during a month where the table indicates the charge as Nil there shall be an additional premium charged for that month equal to pro-rata of the annual premium. The surcharge for U.S. exposure is applicable.

Rule 19: Time on Risk Tables (continued)D. Short Term Tables No. 3 and No. 4 (seasonal use vehicles) These tables apply to all coverages except Comprehensive or Specified Perils for motorcycles, mopeds, snow vehicles and antique vehicles. For Comprehensive or Specified Perils coverage use Short Term Table No. 1 or No. 2 or a pro rata calculation, depending upon the circumstances. 1. For each specific full month that insurance was provided, charge the corresponding Percentage of annual premium indicated below.

Short Term Table No.3 Motorcycles & Mopeds and Antique Vehicles Excluding Comprehensive/Specified Perils Percentage of annual premium Nil Nil 5 10 10 20 Percentage of annual premium 20 20 10 5 Nil Nil

Short Term Table No. 4 Snow Vehicles Excluding Comprehensive/Specified Perils Percentage of annual premium 25 25 15 Nil Nil Nil Percentage of annual premium Nil Nil Nil Nil 10 25

Period

Period

Period

Period

January February March April May June

July August September October November December

January February March April May June

July August September October November December

A24

Ontario August 2001



ONTARIO COMMISSION WORKSHEETEndorsements Item Renewal Net Premium Renewal Commission Endorsements: Deleting all cover Adding S.P. Total 2859x.304 144x.304 -869 44 -825 Example 2859 250 Actual

Pro rata Factor

0.304

There are two calculation options that may be used: 1. Obtain using new premium Example 2859-869=1990 44 Net Premium: 2034 x.11 Commission: 224 2. Obtain using actual endorsement Example -869 44 -825x.11

-90.75 314.49 (2859x.11) -90.75 223.74 26 Refund (250 223.74)

Refund: (250-224) = 26

Cancellations If a policy is cancelled Short Rate, the return premium is calculated short rate. The Service Fee is calculated on a pro-rata basis. The Cap however may limit the fee. Examples assume annual policy in force one month at Short Rate of 15%. Premium Example 1 Policy Cancelled after one month Policy Cancelled after one month Actual 2000 300 (15%) 500 75 (15%) Uncapped Fee 220 33 Cap 250 20.83 (1/12 of 250) 250 20.83 (1/12 of 250) Fee 220 20.83 Total Premium 2200 321

Example 2

55 8.25

55 8.25

555 83


A31


FACILITY ASSOCIATIONC. How to Allocate Chargeable Accidents No accident shall be used more than once in determining the premium for vehicles insured in FA with any Servicing Carrier whether or not on the same policy. When an occasional driver (including male or female under age 25) is responsible for a chargeable accident, the accident must be included for rating purposes. If the occasional driver is removed from the policy, the accident shall be assigned to the vehicle on which it occurred. At new business, where there are multiple vehicles and multiple drivers insured on a policy, any claims shall be assigned first to the vehicle for which the responsible driver is principal operator regardless of which vehicle was involved in the claim. If the responsible driver is principal operator of more than one vehicle, the claim shall be assigned first to the vehicle involved in the claim and if this is not possible, to the vehicle which that person principally operates that produces the highest premium. At renewal, any at fault accidents that occurred during the policy term shall be assigned to the vehicle on which they occurred. For example A new application is received. Applicant is principal operator of vehicle 1 and has had 2 losses on vehicle 1 and 1 loss on vehicle 2. Spouse is principal operator of vehicle 2 and has had 1 loss on vehicle 1 and 1 loss on vehicle 2. For purposes of allocating accidents, the 3 accidents the Applicant has had will be allocated to vehicle 1 and the 2 accidents the spouse has had will be allocated to vehicle 2. The term vehicle includes one for which it has been substituted

Rule 24: Definition of AccidentA. What Is A Chargeable Accident A chargeable (at fault) accident is an occurrence resulting in damage to persons or property arising out of the ownership, use or operation of a vehicle, in consequence of which: 1. An amount has been paid or would have been paid but for the existence of provincial Direct Compensation laws or agreements,

or 2. or 3. A civil suit is pending in respect of Liability No Fault Benefits Schedule (Accident Benefits) Collision or the collision portion of All Perils coverage A chargeable accident is always taken into account in rating even if there was no insurance in effect or the loss was repaid to the insurer by or on behalf of the insured or if the insured chose not to present the claim. B. What Is Not a Chargeable Accident An occurrence shall not be regarded as a chargeable accident if: The insureds degree of fault is determined as zero under the relevant provincial fault determination laws or agreements or dispute resolution mechanism. The damage resulted from the vehicle being struck by an unidentified vehicle and is reported to the police within 24 hours. The damage occurred while the vehicle was legally parked and is reported to police within 24 hours. The damage results from collision with a wild or domestic animal. All damages are legally recoverable from the owner or driver of an uninsured or unidentified automobile. Note: The words loss(es) and claim(s) where used in this manual are considered to have the same meaning as the word accident. The words at fault and chargea

Documents

Ontario Manual Effective May 1, 2010 NB and July, 1 2010 REN