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July 2015 To: Manual of Rules and Rates PRINCE EDWARD ISLAND

Prince Edward Island Automobile Insurance Reform Effective October 1, 2015

As of October 1, 2015 Reform 3 of Bill 46 “An Act to Amend the Insurance Act (No. 2)” in Prince Edward Island will take effect to implement Direct Compensation Property Damage coverage for accidents occuring on or after that date. Policyholder’s will now be compensated by their own insurer for property damages resulting from an automobile accident to the degree they are not at fault. This coverage is mandatory. Facility Association rate pages have been amended to split Third Party Liability premiums between Bodily Injury and Property Damage and include premiums for DCPD coverage. A number of rules have been changed to add references for DCPD coverage where appropriate and to provide rating instructions as required. In addition, amended rules in the manual are being implemented October 1, 2015 including:

• Amended rules for vehicles belonging to non-residents • Remove requirement to order MVR where collision is not fleet rated • Amend Policy Change and Cancellation rule to the date request received by Agent/Broker

rather than Servicing Carrier • Expand flat cancellation exception rule to include dishonour of electronic payments • Amend definition of serious conviction • Amend rule for international licences

For complete details on all rule changes, refer to the manual pages. No hard copies of these pages will be printed; however, 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.

http://www.facilityassociation.com/

FACILITY ASSOCIATION PRINCE EDWARD ISLAND RULES AND RATES MANUAL SUMMARY OF APPROVED RULE CHANGES EFFECTIVE 1 OCTOBER 2015

Rule Wording prior to October 1, 2015 Wording As of October 1, 2015 Change from current

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GENERAL Midterm transfer of business and broker of record letter of authorization

None Midterm Transfer of Business and Broker of Record Letter of Authorization Broker of Record Letters of Authorization for an insured to change agent/broker are not accepted. A new application must be submitted whether the transfer from one agent/broker to another is to take place midterm or at renewal. Midterm transfer of a book of business or partial book of business from one agent/broker to another is not permissible. The transfer will take place at renewal. It is expected the new agent/broker will review the risk carefully for remarket before renewing with Facility Association.

Documents existing practice of not accepting midterm transfer of policies from one agent/broker to another.

PRIVATE PASSENGER SECTION 100:A The insurer’s rules for declining to issue, terminating or refusing to renew a contract are:

3. The vehicle is registered in a jurisdiction other than one in which the application for coverage is being completed or the vehicle is not operated at any time in a jurisdiction in which the Association operates. 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. For example: The vehicle is registered in Prince Edward Island but the application is being completed in Alberta. The vehicle must be registered in Alberta or an Agent/Broker in Prince Edward Island must complete and submit the application for coverage in Prince Edward Island.

3. The vehicle is registered in a jurisdiction other than one in which the application for coverage is being completed or the vehicle is not operated at any time in a jurisdiction in which the Association operates. 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. For example: The vehicle is registered in Prince Edward Island but the application is being completed in Alberta. The vehicle must be registered in Alberta or an Agent/Broker in Prince Edward Island must complete and submit the application for coverage in Prince Edward Island. Exception: See Rule 100.C Non- Residents and Vehicles Not Registered in Jurisdiction C. Non Residents and Vehicles Not Registered in Jurisdiction These vehicles may be operated for 4 months at which point they must be registered and plated in this jurisdiction. A policy of insurance may be required to cover the vehicle during this period. If necessary FA will issue a short term policy for a period not to exceed 4

Expands rule to include vehicles belonging to non-residents



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months to cover the insurance requirement. Upon expiry the policy will lapse and will not be renewed. If the vehicle is registered in this jurisdiction prior to the expiry of the short term policy, the short term policy will be cancelled pro rata and a new POL 1 will be issued for a 6 or 12 month term.

100:B Filed underwriting rules

B. Rules for refusing to provide or continue a coverage are: 1. Physical damage coverage 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.

B. Rules for refusing to provide or continue a coverage are: 1. Optional physical damage coverage 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.

Amends wording to correspond with introduction of DCPD.


2. Physical damage coverage shall not be provided where an application for a branded vehicle (salvage or rebuilt) is submitted without a valid vehicle registration and, at the Servicing Carrier’s discretion, a current safety certificate.

2. Optional physical damage coverage shall not be provided where an application for a branded vehicle (salvage or rebuilt) is submitted without a valid vehicle registration and, at the Servicing Carrier’s discretion, a current safety certificate.



3. Where a vehicle is licensed for highway/road use and is used on roads as well as for race or speed tests, physical damage coverage shall not be provided.

3. Where a vehicle is licensed for highway/road use and is used on roads as well as for race or speed tests, optional physical damage coverage shall not be provided.


101 Minimum Deductibles

Where the rate groups associated with a vehicle produce different minimum deductibles for Collision and Comprehensive/Specified Perils, the higher of the two deductibles applies on both coverages.

Deleted Allows separate deductibles for each coverage

101:C. Physical damage

C. Physical Damage Physical damage coverage shall not be provided or continued for any vehicle valued at $1,000,000 or more.

C. Optional Physical Damage Optional physical damage coverage shall not be provided or continued for any vehicle valued at $1,000,000 or more.


101.F Coverages Available and Minimum Deductibles

If Liability and Accident Benefits 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 Liability and Accident Benefits 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 Liability and Accident Benefits coverages on the policy.

Clarifies this wording applies only if there is no other vehicle with mandatory coverage

101:G. Direct compensation property damage

NEW Direct Compensation Property Damage (DCPD) No deductibles are applicable.

Introduces new coverage.

103.A 6. Before physical damage coverage can be 6. Before optional physical damage coverage can be Amends wording to correspond with



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Requirements/Procedures for Binding New Polcies

bound, a vehicle branded as ‘salvage’ or ’rebuilt’ a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier with the application.

bound, a vehicle branded as ‘salvage’ or ’rebuilt’ a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier with the application.

introduction of DCPD.

104:I New Policies – Verification of Driving History

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 coverage do not qualify for fleet rating of that coverage. The abstract shall then be required to establish the Collision 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.

Remove requirement to order abstracts where collision coverage is not fleet rated

111: Rating class

Notes: Class 05 and 06 1. The vehicle is first rated as if there are no occasional drivers under age 25; premium is then charged for such occasional drivers by adding the Liability and Collision premium for Class 05 or 06. It is not permissible to issue a policy solely at Class 05 or 06 rates.

Notes: Class 05 and 06 1. The vehicle is first rated as if there are no

occasional drivers under age 25; premium is then charged for such occasional drivers by adding the Liability, DCPD and Collision premium for Class 05 or 06. It is not permissible to issue a policy solely at Class 05 or 06 rates.

Adds reference to DCPD.

113:B. Driving record entitlement

Notes 1. The driving record established applies to all coverages for which driving record is a factor. There is no split rating i.e. chargeable accidents will affect the driving record for both the Liability section and the Collision section.

Notes 1. The driving record established applies to all coverages for which driving record is a factor. There is no split rating i.e. chargeable accidents will affect the driving record for Liability, DCPD and Collision.


113:B Tourist or Temporary Resident

B. If the principal operator is a non-permanent/temporary resident, the remarks section of the application must indicate: 1) that the operator holds an international licence. Or 2) that the operator holds a valid licence for the jurisdiction of U.S. residence.

B. If the principal operator is a non-permanent/temporary resident, the remarks section of the application must indicate: 1) that the operator holds a valid licence from country of origin Or 2) that the operator holds a valid licence for the jurisdiction of U.S. residence And 3) a copy of the licence must be provided to the Servicing Carrier

Aligns rule with licence requirements in the jurisdiction

116: Vehicle rate group

END 19 and END 40 Where the rate group is shown as A or the estimated value is greater than $15,000 a

END 19 and END 40 Where the rate group is shown as A or the estimated value is greater than $15,000 a completed and signed

Adds reference to DCPD and amends wording to correspond with introduction of DCPD.



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completed and signed END 19 (Limitation of Amount) must be attached to the policy where the policy provides physical damage coverage. END 40 must be attached to the policy where there has been a prior fire or total vehicle theft loss within the past 60 months and the policy provides physical damage coverage. Where the policy provides only Liability and Accident Benefits, attachment of END 19 and END 40 is not required.

END 19 (Limitation of Amount) must be attached to the policy where the policy provides optional physical damage coverage. END 40 must be attached to the policy where there has been a prior fire or total vehicle theft loss within the past 60 months and the policy provides physical damage coverage. Where the policy provides only Liability. DCPD and Accident Benefits, attachment of END 40 is not required.

116.A Vehicle Rate Group

If a current year make/model is not listed but it was listed in the previous year, use the rate group for the previous year. If it was not listed in the previous year (new model), contact your Servicing Carrier. The Servicing Carrier shall provide you with the Rate Group assigned by the Vehicle Information Centre.

If a current year make/model is not listed but it was listed in the immediately preceding year, use the rate group for the immediately preceding year. If it was not listed in the immediately preceding year (It is a new model or there is a gap in model years), use rate group assigned by IBC’s Vehicle Data Services.

Provides direction to deal with gaps in model years

125 Premium Determination

4. Establish the driving record for Liability and Collision coverages

4. Establish the driving record for Liability, DCPD and Collision coverages


126 Policy Term

Every policy or renewal shall be issued for a term of either one year or six months. See also Rule 145: Purchasing Vehicles in Jurisdiction 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

Every policy or renewal shall be issued for a term of either one year or six months. See also Rule 145: Purchasing Vehicles in Jurisdiction Where FA Does Not Operate and Rule 100.C Non Residents and Vehicle Not Registered in Jurisdiction. 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. A short term policy may also be issued for a vehicle being temporarily operated in a jurisdiction in which it is not registered. 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




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short term table in this manual, subject always to the minimum retained policy premium. Policies subject to Rule 149: Fleets cannot be issued for a term of 6 months.

the applicable short term table in this manual, subject always to the minimum retained policy premium. Policies subject to Rule 149: Fleets cannot be issued for a term of 6 months.

127.C Amending or Deleting Coverage on Vehicles with Lessees or Lienholders

Where physical damage coverage is being amended or deleted on a leased vehicle or a vehicle on which there is a lienholder, the Servicing Carrier must send a notice to the lessor or lienholder to advise of the coverage being amended or deleted and the effective date of the transaction.

Where optional physical damage coverage is being amended or deleted on a leased vehicle or a vehicle on which there is a lienholder, the Servicing Carrier must send a notice to the lessor or lienholder to advise of the coverage being amended or deleted and the effective date of the transaction.


127.D Binding Coverage Policy Changes

Before physical damage coverage can be bound on a vehicle branded as ‘salvage’ or ‘rebuilt’a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier.

Before optional physical damage coverage can be bound on a vehicle branded as ‘salvage’ or ‘rebuilt’a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier.

Amends wording to correspond with introduction of DCPD

127:E Deletions of Vehicles and Coverages

a) If the request for deletion is received by the Servicing Carrier within 30 days of the date the deletion is to be effected, the deletion shall take effect at 12:01 a.m. on the date that it was requested to be effective. In the event that the deletion was specifically requested to be effective at a time other than 12:01 a.m., the deletion shall be effected at 12:01 a.m. the following day. For example: The insured requests deletion of the vehicle/coverage to be effective September 5. The deletion request is received by the Servicing Carrier on September 20. The Servicing Carrier will issue the endorsement effective 12:01 a.m. September 5. If the insured requested the deletion to be effective at 3:40 p.m. on September 5, the Servicing Carrier will delete the vehicle/ coverage effective 12:01 a.m. on September 6. b) If the request for deletion is received by the Servicing Carrier more than 30 days

a) If the request for deletion is received by the Agent/Broker within 30 days of the date the deletion is to be effected, the deletion shall take effect at 12:01 a.m. on the date that it was requested to be effective. In the event that the deletion was specifically requested to be effective at a time other than 12:01 a.m., the deletion shall be effected at 12:01 a.m. the following day. For example: The Insured requests deletion of the vehicle/coverage to be effective September 5. The deletion request is received by the Agent/Broker on September 20. The Servicing Carrier will issue the policy change effective 12:01 a.m. September 5. If the Insured requested the deletion to be effective at 3:40 p.m. on September 5, the Servicing Carrier will delete the vehicle/ coverage effective 12:01 a.m. on September 6. b) If the request for deletion is received by the Agent/Broker more than 30 days after the date the deletion was requested to be effected, the deletion shall take effect at 12:01 a.m. on the date that the deletion request is received by the Agent/Broker.

Amends rule to date received by Agent/Broker rather than Servicing Carrier



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after the date the deletion was requested to be effected, the deletion will take effect at 12:01 a.m. on the date that the deletion request is received by the Servicing Carrier. For example: The insured requests deletion of a vehicle/coverage to be effective September 5. The deletion request is received by the Servicing Carrier on October 10. The Servicing Carrier will delete the vehicle/coverage effective 12:01 a.m. October 10.

For example: The Insured requests deletion of a vehicle/coverage to be effective September 5. The deletion request is received by the Agent/Broker on October 10. The Servicing Carrier will delete the vehicle/coverage effective 12:01 a.m. October 10. Note for a) and b) If the date the request was received by the Agent/Broker is not evident the Agent/Broker will be asked to provide proof of the date received acceptable to the Servicing Carrier. If proof cannot be provided the request will be processed effective 12:01 a.m. on the date received by the Servicing Carrier.

129:A Midterm Cancellation – Effective Date

1. Received by Servicing Carrier within 30 days If the request for a midterm 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 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 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. NOTE: For flat cancellation of renewals, refer to Rule 129:E.4. 2. Received by Servicing Carrier after 30 days

1. Received by Agent/Broker within 30 days If the request for a midterm cancellation is received by the Agent/Broker 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 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 midterm cancellation of the policy to be effective August 5. The cancellation request is received by the Agent/Broker 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. 2. Received by Agent/Broker after 30 days If the request for cancellation is received by the Agent/Broker 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 Agent/Broker.




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If the request for 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 will cancel the policy effective 12:01 a.m. October 10.

For example: The Insured requests cancellation of the policy to be effective September 5. The cancellation request is received by the Agent/Broker on October 10. The Servicing Carrier shall cancel the policy effective 12:01 a.m. October 10. Note for 1 and 2 If the date the request was received by the Agent/Broker is not evident the Agent/Broker will be asked to provide proof of the date received acceptable to the Servicing Carrier. If proof cannot be provided the request will be processed effective 12:01 a.m. on the date received by the Servicing Carrier.

129:E 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 thereof is not honoured by the bank, flat cancellation shall be allowed to the Agent/Broker provided that: a) the cheque was dated and issued on or before the effective date of the policy period concerned; and b) the cheque was immediately deposited; and c) 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 d) 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.

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 or electronic payment received for a new policy or renewal premium or, for the first installment thereof is not honoured by the financial institution, flat cancellation shall be allowed to the Agent/Broker provided that: a) the cheque was dated and issued on or before the effective date of the policy period concerned or the electronic payment was made on or before the effective of the policy period concerned; and b) the cheque was immediately deposited; and c) in the case of a first installment, the amount of the cheque or electronic payment was sufficient to meet the Servicing Carrier’s requirement or if financed under a contract with a premium finance company the full down payment required under the terms of the contract; and d) The return of the cheque by the financial institution or dishonour of the electronic payment is promptly reported to the Servicing Carrier. A copy of the cheque front and back or copy of the dishonour notice must be provided to the Servicing

Expands rule to include dishonour of electronic payments



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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.

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.

131: Time on risk tables

Days in force % of premium 139-142 44 142-146 45 312-316 89 316-318 90


Corrects overlapping time frames in tables.

135:C. How to allocate chargeable accidents

A chargeable accident will affect the rating of both Liability and Collision coverages.

A chargeable accident will affect the rating of Liability, DCPD and Collision coverages.


136: Accident and conviction surcharges

These surcharges are applicable to Liability (including Passenger Liability) and Collision. These surcharges are not to be applied to coverages which are experience (fleet) rated.

These surcharges are applicable to Liability (including Passenger Liability), DCPD and Collision. These surcharges are not to be applied to coverages which are experience (fleet) rated.


136:D.c. Conviction definitions - serious

Convictions for any of the following offences under the Criminal Code of Canada or under any Act governing highway traffic or under any other Act or for any offence substantially the same whether committed within or outside Canada or any conviction which appears on a driver record abstract identified as a Criminal Code conviction. Note: Where a conviction shown above is not recorded on the Driver Record Abstract as a Criminal Code Conviction but is shown under any Act governing highway traffic or any other Act within Canada or any offence substantially the same committed within or outside Canada, that conviction is considered a "Major" conviction.

Convictions for any of the following offences under the Criminal Code of Canada. Where a conviction shown below is not recorded on the driver record abstract as a Criminal Code Conviction but is shown under any Act governing highway traffic or any other Act within Canada or any offence substantially the same committed within or outside Canada, that conviction is considered a "Major" conviction.

Deletes note since information is now incorporated in rule wording.

137: Proof of insurance

C. Policy Cancellation, Vehicle Deletion, Suspension or Deletion of Liability Coverage

C. Policy Cancellation, Vehicle Deletion

Amends heading to recognize that suspension of coverage and deletion of Liability are not permissible when proof of insurance is filed.

138:A. If this exposure is 5.0% or less of the total If this exposure is 5.0% or less of the total Adds reference to DCPD and amends



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Outside P.E.I. exposure surcharge

mileage, the surcharge shall be waived unless proof of insurance is required by authorities. In this case a 5% surcharge will apply to Liability (Road Hazard and Passenger Hazard), Accident Benefits and END 44 only. Liability, Accident Benefits, Uninsured Automobile, END 44 For each percentage point of use in the U.S. or other applicable jurisdiction, surcharge 1% of the applicable premium. For example:

Outside Prince Edward Island Exposure

Applicable Surcharge

5% or less and proof of insurance required

5%

10% 10% 25% 25% 50% 50%

Physical Damage For each percentage point of use in the U.S. or other applicable jurisdiction, surcharge .50% of the applicable premium. For example:

Outside Prince Edward Island Exposure


10% 5% 25% 12.5% 50% 25%

mileage, the surcharge shall be waived unless proof of insurance is required by authorities. In this case a 5% surcharge will apply to Liability (Road Hazard and Passenger Hazard), DCPD, Accident Benefits, Uninsured Automobile and END 44 only. Liability, DCPD, Accident Benefits, Uninsured Automobile, END 44 For each percentage point of mileage in the U.S. or other applicable jurisdiction, surcharge 1% of the applicable premium. For example: Outside Prince Edward Island Exposure


5% or less and proof of insurance required

5%

10% 10% 25% 25% 50% 50%

Optional Physical Damage For each percentage point of mileage in the U.S. or other applicable jurisdiction, surcharge .50% of the applicable premium. For example: Outside Prince Edward Island Exposure


6% 3% 10% 5% 25% 12.5% 50% 25%

wording to correspond with introduction of DCPD.

138:B. Currency differential surcharge

The currency differential surcharge is 1. Applied only to the Liability premium (Road/ Passenger Hazard)

The currency differential surcharge is 1. Applied only to the Liability premium (Road/Passenger Hazard) not DCPD


138:B1 Currency Differential Surcharge

Whenever proof of insurance is required by U.S. authorities, a currency differential surcharge is added to the Liability premium to

B. Currency Differential Surcharge Whenever proof of insurance is required by U.S. authorities, a currency differential surcharge is

Clarifies the method for determining rate of exchange



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provide for the potential additional loss arising from the payment of a claim in U.S. dollars. The currency differential is the rate of exchange being charged for the US dollar, to the nearest cent, as at the date the premium is calculated for policy issuance. The Servicing Carrier shall obtain the rate of exchange from a chartered bank at the location where the premium is calculated.

added to the Liability premium to provide for the potential additional loss arising from the payment of a claim in U.S. dollars. The currency differential is the rate of exchange being charged for the U.S. dollar, to the nearest cent, as at the date the premium is calculated by the Servicing Carrier for policy issuance. The Servicing Carrier shall use the Bank of Canada closing rate from the previous published day.

141: Suspension and reinstatement of coverages – END16/17

Liability, Accident Benefits, Uninsured Automobile and Collision as they relate to the use and operation of the described vehicles, new vehicles or temporary substitute vehicles may be suspended by means of END 16.

Liability, DCPD, Accident Benefits, Uninsured Automobile and Collision as they relate to the use and operation of the described vehicles, new vehicles or temporary substitute vehicles may be suspended by means of END 16.


142 B Suspension of Operator’s Licence

The Servicing Carrier shall issue END 28/78 (Reduction of Coverage as Respects Named Persons) restricting coverage to minimum statutory requirements and excluding physical damage where provided, for that person. END 8a shall be used in conjunction with END 28/78 except where END 28/78 applies to the named insured.

The Servicing Carrier shall issue END 28/78 (Reduction of Coverage as Respects Named Persons) restricting coverage to minimum statutory requirements and excluding optional physical damage where provided, for that person. END 8a shall be used in conjunction with END 28/78 except where END 28/78 applies to the named insured.


143: ‘Home-Made / Reconstructed / Right Hand Drive / Imported Vehicles

A. Liability, Accident Benefits No coverages are permissible until the following is provided to the Servicing Carrier: A valid vehicle registration and at the Servicing Carrier’s discretion, a certificate of roadworthiness or mechanical fitness acceptable to the Servicing Carrier. These certificates must accompany the application to the Servicing Carrier.

A. Liability, DCPD and Accident Benefits No coverages are permissible until the following are provided to the Servicing Carrier: 1. A valid vehicle registration and, at the Servicing Carrier’s discretion, a certificate of roadworthiness or mechanical fitness acceptable to the Servicing Carrier And 2. For vehicles valued $15,000 or more, an appraisal acceptable to the Servicing Carrier at the Applicant’s expense to enable the proper rating group to be determined. Vehicles valued under $15,000 are rated based on value provided by the Insured. These certificates must accompany the application to the Servicing Carrier.




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3. Rate group 10 is to be used for Accident Benefits where vehicles are rated by value. 4. The insurance shall be subject to END 19 (Limited the Amount Paid for Loss or Damage Coverages) which must be attached to the policy and a copy signed by the Insured. END 19A (Agreed Value of Automobiles) is not available.

143: ‘Home-Made / Reconstructed / Right Hand Drive / Imported Vehicles

B. Physical Damage Coverage 1. No physical damage coverage (for any value) will be available for:

B. Optional Physical Damage Coverage 1. No optional physical damage coverage (for any value) will be available for:


144: Vehicles used outside jurisdiction of registration

4. If the out of jurisdiction is 5.0% or less of total mileage, the surcharge shall be waived unless proof of insurance is required by authorities. In this case a 5% surcharge will apply to Liability (Road Hazard and Passenger Hazard), Accident Benefits, Uninsured Automobile and END 44.

4. If t the out of jurisdiction is 5.0% or less of total mileage, the surcharge shall be waived unless proof of insurance is required by authorities. In this case a 5% surcharge will apply to Liability (Road Hazard and Passenger Hazard), DCPD, Accident Benefits, Uninsured Automobile and END 44.


146: Short term rentals- unspecified lessees - leases of 30 days or less

1. Coverages/Premiums Liability, Physical Damage Class of Vehicle Premium Private Passenger Vehicles 250% of 07/0 rate Commercial Vehicles Light Trucks 200% of 43/0 rate Heavy Trucks 200% of 45/0 rate Tractors/Trailers 175% of 64/0 rate Private Type Trailers Liability Non Pleasure rate plus $15 Physical Damage 250% of normal rate Motor Homes and Vehicles with mounted Camper Unit Liability 250% of 07/0 rate Physical Damage 250% of normal rate Motorcycles &Mopeds 250% of Driving Record 0 rate applicable to Age 16-20

Coverages/Premiums 1. Liability, DCPD, Optional Physical Damage Class of Vehicle Premium Private Passenger Vehicles 250% of 07/0 rate Commercial Vehicles Light Trucks 200% of 43/0 rate Heavy Trucks 200% of 45/0 rate Tractors/Trailers 175% of 64/0 rate Motor Homes and Vehicles with mounted Camper Unit Liability, DCPD 250% of 07/0 rate Optional Physical Damage 250% of normal rate Private Type Trailers Liability Non Pleasure rate plus $15 Optional Physical Damage 250% of normal rate Motorcycles & Mopeds 250%of Driving Record 0 for age 16 Snow Vehicles 250% of normal rate All Terrain Vehicles 250% of normal rate

Adds reference to DCPD in heading. Adds optional to physical damage



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Snow Vehicles 250% of normal rate All Terrain Vehicles 250% of normal rate Any other vehicle Refer to Servicing Carrier

Any other vehicle Refer to Servicing Carrier NOTE: No DCPD premium is applicable to private trailers and camper units.

148:D. Driver training vehicle surcharge table

1. Vehicles used only for Secondary School, College or University training courses. Equipped with Coverage Dual controls Other Liability 35% 135% Collision 0% 75% 2. Other Vehicles Equipped with Coverage Dual controls Other Liability 70% 170% Collision 25% 100%

1. Vehicles used only for Secondary School, College or University training courses. Equipped with Coverage Dual controls Other Liability/DCPD 35% 135% Collision 0% 75% 2. Other Vehicles Equipped with Coverage Dual controls Other Liability/DCPD 70% 170% Collision 25% 100%

Adds DCPD to table.

149:B. Fleets

Physical Damage Coverage Each physical damage coverage is subject to fleet rating only if there has been 120 months of corresponding physical damage coverage in the past 12 months. Vehicles may be covered for Comprehensive/Specified Perils only provided proof of insurance has not been filed for any vehicle on the policy. The Collision coverage shall be regarded as the same coverage for the purposes of determining the number of months of coverage, similarly, the Comprehensive and Specified Perils shall be regarded as the same coverage. When a physical damage coverage is not fleet rated and a driving record must then be established to determine a premium for the coverage, the driving record provisions under Private Passenger, Commercial and Public shall apply. Where Collision claims that have occurred in

Optional Physical Damage Coverage Each optional physical damage coverage is subject to fleet rating only if there has been 120 months of corresponding optional physical damage coverage in the past 12 months. Vehicles may be covered for Comprehensive/Specified Perils only provided proof of insurance has not been filed for any vehicle on the policy. The Collision portion of All Perils and Collision coverage shall be regarded as the same coverage for the purposes of determining the number of months of coverage, similarly, the portion of All Perils and, Comprehensive and Specified Perils shall be regarded as the same coverage. When optional physical damage coverage is not fleet rated and a driving record must then be established to determine a premium for the coverage, the driving record provisions under Private Passenger, Commercial and Public shall apply. Where Collision claims that have occurred in the

Changes physical damage to Optional physical damage



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the past three years cannot be allocated to specific vehicles, the claims shall be assigned to the highest rated vehicles, one to each in descending order.

past three years cannot be allocated to specific vehicles, the claims shall be assigned to the highest rated vehicles, one to each in descending order.

149:B Fleet Rating – Optional Physical Damage Coverage

When optional physical damage coverage is not fleet rated and a driving record must then be established to determine a premium for the coverage, the driving record provisions under Private Passenger, Commercial and Public shall apply.

Deleted Removes wording as all optional physical damage coverage is fleet rated

149:D.7.

Physical Damage Optional Physical Damage Amends heading to include optional

152: Endorsements applicable to POL 1 (Owner’s Policy)

Legend Liability or (TPL) means B.I. and P.D. Tort; Physical Damage means Optional Coverages – Loss or Damage (Collision, Comprehensive, Specified Perils)

Legend Liability (or TPL) means B.I. and P.D. Tort; DCPD means Direct Compensation – Property Damage; Optional Physical Damage means Optional Coverages – Loss or Damage (Collision, Comprehensive, Specified Perils)


152: Endorsements applicable to POL 1 (Owner’s Policy) END 3: Drive government automobiles

Covers the insured’s legal liability arising from the custody and use of a vehicle owned by the federal or a provincial government, including Liability for the loss of or damage to the vehicle arising from Collision and/or Comprehensive or Specified Perils. The insured must specify the types of vehicle that may be in their custody and, in regard to the physical damage coverages, must indicate the required limit per occurrence

Covers the insured’s legal liability arising from the custody and use of a vehicle owned by the federal or a provincial government, including Liability for the loss of or damage to the vehicle arising from Collision and/or Comprehensive or Specified Perils. The insured must specify the types of vehicle that may be in their custody and, in regard to the optional physical damage coverages, must indicate the required limit per occurrence.

Changes physical damage to Optional physical damage and adds DCPD

152: Endorsements applicable to POL 1 (Owner’s Policy) END 3: Drive government automobiles

Rating The charge for each coverage is this percentage of the calculated premium. Liability: . . . . . . . . . . . . . . . . . . .20% Accident Benefits: . . . . . . . . . . . ..50% Physical Damage: . . . . . . . . . . …100%

Rating The charge for each coverage is this percentage of the calculated premium. Liability/DCPD:. . . . . . . .. . . . .20% Accident Benefits: . . . . . . . .. . ..50% Optional Physical Damage: . . . …100%

152: Endorsements applicable to POL 1 (Owner’s Policy) END 5C: Permission to

Rating The following premiums apply to the policy and are not specifically for the endorsement: 1. Liability and Collision, Comprehensive, Specified Perils:

Rating The following premiums apply to the policy and are not specifically for the endorsement: 1. Liability, DCPD, Collision, Comprehensive, Specified Perils:




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rent or lease

Private Passenger Vehicles 250% of 07/0 rate Commercial Vehicles Light Trucks 200% of 43/0 rate Heavy Trucks 200% of 45/0 rate Tractors/Trailers 175% of 64/0 rate Private Trailers Liability add $15 Physical Damage 250% of normal rate Motor Homes & Camper Units Liability 250% of 07/0 rate Physical Damage 250% of normal rate Motorcycles &Mopeds 250% of Driving Record 0 for age 16-20 Snowmobiles & ATV’s 250% of normal rate See Rule 146

Private Passenger Vehicles 250% of 07/0 rate Commercial Vehicles Light Trucks 200% of 43/0 rate Heavy Trucks 200% of 45/0 rate Tractors/Trailers 175% of 64/0 rate Private Trailers Liability Non pleasure rate plus $15 Optional Physical Damage 250% of normal rate Motor Homes & Camper Units Liability, DCPD 250% of 07/0 rate Optional Physical Damage 250% of normal rate Motorcycles & Mopeds 250%of Driving Record 0 for age 16-20 Snow Vehicles & ATV’s 250% of normal rate See Rule 146

152: Endorsements applicable to POL 1 (Owner’s Policy) END 16: Suspension of coverage

The Liability, Accident Benefits and Collision coverages in respect of a vehicle that is temporarily laid up may be suspended by means of END 16.

The Liability, DCPD, Accident Benefits and Collision coverages in respect of a vehicle that is temporarily laid up may be suspended by means of END 16.


152: Endorsements applicable to POL 1 (Owner’s Policy) END 19: Limitation of amount

Provides that, in the event of loss or damage, the maximum amount of insurance under the physical damage sections of the policy is the actual cash value of the vehicle or the specified dollar amount (selected by the insured), whichever is less. The use of the endorsement is mandatory in respect of Motorcycles and Mopeds and all vehicles for which the physical damage premiums are based on the estimated or appraised current value.

Provides that, in the event of loss or damage, the maximum amount of insurance under DCPD and optional physical damage sections of the policy is the actual cash value of the vehicle or the specified dollar amount (selected by the insured), whichever is less. The use of the endorsement is mandatory in respect of Motorcycles and Mopeds and all vehicles for which DCPD and optional physical damage premiums are based on the estimated or appraised current value.

Changes physical damage to Optional physical damage and adds reference to DCPD

Base physical damage premiums on estimated or appraised current value.

Base DCPD and optional physical damage premiums on estimated or appraised current value.

152: Endorsements

10% of total physical damage premium; minimum net annual $25.

10% of total optional physical damage premium; minimum net annual $25.

Changes physical damage to Optional physical damage



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applicable to POL 1 (Owner’s Policy) END 23:B Mortgage (Broad Form) Rating 152: Endorsements applicable to POL 1 (Owner’s Policy) END 24: Fire apparatus

Excludes physical damage coverage on equipment removed from the vehicle while at the location of a fire. Use of the endorsement is mandatory when the insurance applies to a fire-fighting vehicle

Excludes optional physical damage coverage on equipment removed from the vehicle while at the location of a fire. Use of the endorsement is mandatory when the insurance applies to a fire-fighting vehicle

Changes physical damage to optional physical damage

152: Endorsements applicable to POL 1 (Owner’s Policy) END 31: Non-owned equipment

Provides coverage in respect of apparatus, machinery or equipment that is attached to the vehicle but is not owned by the insured. Use of the endorsement is not permissible in respect of a vehicle to which END 30 applies. The physical damage coverages may only be the same as those provided in respect of the vehicle. The required limit in respect of loss of or damage to the equipment must be specified.

Provides coverage in respect of apparatus, machinery or equipment that is attached to the vehicle but is not owned by the insured. Use of the endorsement is not permissible in respect of a vehicle to which END 30 applies. The optional physical damage coverages may only be the same as those provided in respect of the vehicle. The required limit in respect of loss of or damage to the equipment must be specified.


COMMERCIAL 200:A The insurer’s rules for declining to issue, terminating or refusing to renew a contract are:

3. The vehicle is registered in a jurisdiction other than one in which the application for coverage is being completed or the vehicle is not operated at any time in a jurisdiction in which the Association operates. 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. For example: The vehicle is registered in Prince Edward Island but the application is being completed in Alberta. The vehicle must be registered in Alberta or an Agent/Broker in Prince Edward Island must complete and submit the application for coverage in Prince Edward Island.

3. The vehicle is registered in a jurisdiction other than one in which the application for coverage is being completed or the vehicle is not operated at any time in a jurisdiction in which the Association operates. 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. For example: The vehicle is registered in Prince Edward Island but the application is being completed in Alberta. The vehicle must be registered in Alberta or an Agent/Broker in Prince Edward Island must complete and submit the application for coverage in Prince Edward Island. Exception: See Rule 100.C Non- Residents and Vehicles Not Registered in Jurisdiction C. Non Residents and Vehicles Not




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Registered in Jurisdiction These vehicles may be operated for 4 months at which point they must be registered and plated in this jurisdiction. A policy of insurance may be required to cover the vehicle during this period. If necessary FA will issue a short term policy for a period not to exceed 4 months to cover the insurance requirement. Upon expiry the policy will lapse and will not be renewed. If the vehicle is registered in this jurisdiction prior to the expiry of the short term policy, the short term policy will be cancelled pro rata and a new POL 1 will be issued for a 6 or 12 month term.


B. Rules for refusing to provide or continue a coverage are: 2. Physical damage coverage 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. 3. Where a vehicle is licensed for highway/road use and is used on roads as well as for race or speed tests, physical damage coverage shall not be provided.

B. Rules for refusing to provide or continue a coverage are: 2. Optional physical damage coverage 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. 3. Where a vehicle is licensed for highway/road use and is used on roads as well as for race or speed tests, optional physical damage coverage shall not be provided.


201:C. Physical damage

C. Physical Damage Physical damage coverage shall not be provided or continued for any vehicle valued at $1,000,000 or more. All Perils coverage is no longer available. Physical damage shall not be provided for Off-Road Commercial Vehicles e.g. logging trucks used solely in the bush.

C. Optional Physical Damage Optional physical damage coverage shall not be provided or continued for any vehicle valued at $1,000,000 or more. All Perils coverage is no longer available. Optional physical damage shall not be provided for Off-Road Commercial Vehicles e.g. logging trucks used solely in the bush.


201.F Coverages Available and Minimum Deductibles

If Liability and Accident Benefits 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 Liability and Accident Benefits 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 Liability and Accident Benefits coverages on the policy.

Clarifies this wording applies only if there is no other vehicle with mandatory coverage



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201:G. Direct compensation property damage

NEW Direct Compensation Property Damage (DCPD) No deductibles are applicable.

Introduces new coverage.

203.A Binding Coverage New Policies

6. Before physical damage coverage can be bound, a vehicle branded as ‘salvage’ or ’rebuilt’ a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier with the application.

6. Before optional physical damage coverage can be bound, a vehicle branded as ‘salvage’ or ’rebuilt’ a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier with the application.


204:I New Policies – Verification of Driving History

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 coverage do not qualify for fleet rating of that coverage. The abstract shall then be required to establish the Collision 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.

Remove requirement to order abstracts where collision coverage is not fleet rated

205:H.2 Machinery or apparatus

Paragraph 2 Some equipment owned by others may be attached to the vehicle. E.g. the applicant owns the truck but uses a tank body and pumping equipment owned by another. The coverage may be extended by attaching END 31 (Nonowned Equipment). The physical damage coverage may only be the same as that provided on the vehicle.

Paragraph 2 Some equipment owned by others may be attached to the vehicle. E.g. the applicant owns the truck but uses a tank body and pumping equipment owned by another. The coverage may be extended by attaching END 31 (Nonowned Equipment). The optional physical damage coverage may only be the same as that provided on the vehicle.


207.B Note 2 Rating Class

2. For policies issued for less than 6 months, Note 1 shall apply if the percentage of time used beyond 80 km (50 miles) for the policy period, exceeds 5%.

2. For policies issued for less than 6 months, Note 1 shall apply if the percentage of mileage used beyond 80 km (50 miles) for the policy period, exceeds 5%.

Amends wording to mileage instead of time

207:J Rating class table

Fire Department Trucks (subject to END 24 if Physical Damage is insured)

Fire Department Trucks (subject to END 24 if Optional Physical Damage is insured)


208 Method of Rating for More Than One Use

NEW Note 1: For driver training vehicles and short term rentals, refer to Rules 236 and 238. Note 2: With Slip Tanks (removable tanks to carry

Provides direction for driver training, short term rentals and slip tanks



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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.

209:B. Driving record entitlement

1. The driving record established applies to all coverages concerned. A chargeable accident will affect the rating of both Liability and Collision coverages.

1. The driving record established applies to all coverages concerned. A chargeable accident will affect the rating of Liability, DCPD and Collision coverages.


211:A Vehicle Rate Group

This table lists by manufacturer, model and series, standard production pickup, utility, van (panel or sedan delivery) or wagon types, having Gross Vehicle Weights not exceeding 10,000 pounds (4.5 metric tons). The VIN column shows the letters or digits that identify the particular vehicle. The placement of these characters in the serial number varies among manufacturers. The position of the significant characters is shown opposite the make.

S ymbol Means Exampl

* Any character CO* is COD

COM

’ M ore than one D25, 6 is D2

D26

- Inclusive E04-6 is E04

E05 or E06 4x4 Four Wheel

Drive

Current model year makes and models that are not specifically classified in this table may be classified in the same manner as the corresponding previous year, make and model. If there is no corresponding previous model year, make and model, Servicing Carriers shall use the rate group established by the Insurer’s Advisory Organization. Rating Group Table I is not to be used for models and series not specifically listed.

This table lists by manufacturer, model and series, standard production pickup, utility, van (panel or sedan delivery) or wagon types, having Gross Vehicle Weights not exceeding 10,000 pounds (4.5 metric tons). If a current year make/model is not listed but it was listed in the immediately preceding year, use the rate group for the immediately preceding year. If it was not listed in the immediately preceding year (it is a new model or there is a gap in model years), contact your Servicing Carrier. The Servicing Carrier shall provide you with the rate group assigned by IAO. Rating Group Table I is not to be used for models and series not specifically listed.

Removes reference to the VIN column as it is no longer available

212:B. Rating of trailers

NEW 1. Owned Trailer Direct Compensation – Property Damage Rating

Adds rating of DCPD.



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Charge 10% of the DCPD premium applicable to the highest rated vehicle with which the trailer may be towed. 2. Policy Covers Trailers Only Direct Compensation – Property Damage Rating Charge 10% of the DCPD premium applicable to the highest rated vehicle with which the trailer may be towed.

212.B.1 Owned Trailers

If the number of trailers insured by a policy exceeds the number that could be used at any one time (including with any vehicles insured by other policies/insurers), the premium under Liability for the ‘excess’ trailers is reduced by 50%. If all trailers do not produce the same premium, the trailer(s) that would otherwise produce the lowest premium shall be considered excess. For example: There are two tractors and four trailers. Two of the trailers produce premiums of $500 each. The other two trailers produce premiums of $700 each. The trailers that produce premiums of $500 each will be considered excess and the Liability premiums for each of those trailers will be reduced by 50%. The driving record for rating a trailer’s Liability insurance is the same as the vehicle on which the trailer’s premium is based. (For reporting under the Automobile Statistical Plan, the trailer is identified by the use of Driving Record Code “7”.)

If the number of trailers insured by a policy exceeds the number that could be used at any one time (including with any vehicles insured by other policies/insurers), the premium under Liability and DCPD for the ‘excess’ trailers is reduced by 50%. If all trailers do not produce the same premium, the trailer(s) that would otherwise produce the lowest premium shall be considered excess. For example: There are two tractors and four trailers. Two of the trailers produce premiums of $500 each. The other two trailers produce premiums of $700 each. The trailers that produce premiums of $500 each will be considered excess and the Liability and DCPD premiums for each of those trailers will be reduced by 50%. The driving record for rating a trailer’s Liability and DCPD insurance is the same as the vehicle on which the trailer’s premium is based. (For reporting under the Automobile Statistical Plan, the trailer is identified by the use of Driving Record Code “7”.)


212.B1 Owned Trailers

Liability Note: If the towing vehicle is rated with an Outside Prince Edward Island exposure surcharge and/or conviction/accident surcharge, the percentage applies to the towing vehicle premium including that surcharge.

Liability, DCPD Note: If the towing vehicle is rated with an Outside Prince Edward Island exposure surcharge and/or conviction/accident surcharge, the percentage applies to the towing vehicle premium including that surcharge.

Amends heading



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212:B.1 Owned trailers

Physical Damage

Optional Physical Damage

Amends heading

212:B.2 Non-owned trailers

Physical Damage

Optional Physical Damage

Amends heading

212:B.3 Policy Covers Trailers Only

Physical Damage Establish the rate group and rate accordingly. If required, apply surcharges for Outside Prince Edward Island exposure to all Physical Damage Coverage and surcharges for accidents and convictions to Collision coverage.

Optional Physical Damage Establish the rate group and rate accordingly. If required, apply surcharges for Outside Prince Edward Island exposure to all optional Physical Damage Coverage and surcharges for accidents and convictions to Collision coverage.

Amends heading

214 Commonly used endorsements

END 31 – Non-owned Equipment Paragraph 2 The physical damage coverages may only be the same as those provided in respect of the vehicle. The required limit must be specified. The rate group is based on Rate Group Table II using the list price new of the vehicle and the nonowned equipment.

END 31 – Non-owned Equipment Paragraph 2 The optional physical damage coverages may only be the same as those provided in respect of the vehicle. The required limit must be specified. The rate group is based on Rate Group Table II using the list price new of the vehicle and the nonowned equipment.


215:E.A Calculating premium with no outside Prince Edward Island exposure

Calculating Premium with No Outside Prince Edward Island Exposure: Steps 4. For Liability and Collision coverages, establish the driving record (See Rule 209: Driving Record). 5.For physical damage, establish the rate group and the minimum deductible (see Rule 209: Vehicle Rate Group and Rule 201: Coverages Available and Minimum Deductibles).

Calculating Premium with No Outside Prince Edward Island Exposure: Steps 4. For Liability, DCPD and Collision coverages, establish the driving record (See Rule 209: Driving Record). 5. For DCPD establish the rate group and for optional physical damage, establish the rate group and the minimum deductible. Refer to Rule 209:Vehicle Rate Group and Rule 201: Coverages Available and Minimum Deductibles.

Adds rating of DCPD.



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215:E.B Calculating premium with outside Prince Edward Island exposure

Calculating Premium with Outside Prince Edward Island Exposure: Towing Vehicles NEW Collision – Calculate the Outside Prince Edward Island exposure surcharge for physical damage and apply to the premium. Then apply any fleet rating or accident/ conviction surcharge to the resulting premium. Comprehensive/Specified Perils – Apply the Outside Prince Edward Island exposure surcharge for physical damage to the premium. Trailers NEW

Calculating Premium with Outside Prince Edward Island Exposure: Towing Vehicles DCPD – Apply the Outside Prince Edward Island exposure surcharge to the premium. Then apply any fleet rating or accident/conviction surcharge to the resulting premium. Collision – Calculate the Outside Prince Edward Island exposure surcharge for optional physical damage and apply to the premium. Then apply any fleet rating or accident/ conviction surcharge to the resulting premium. Comprehensive/Specified Perils – Apply the Outside Prince Edward Island exposure surcharge for optional physical damage to the premium. Trailers DCPD – Determine the premium for the towing vehicle in accordance with Rule 213.E. Apply 10% of the towing vehicle premium to obtain the premium applicable to the trailer. If the trailer is the only vehicle on the policy, apply the accident/conviction surcharge.

Adds rating of DCPD. Changes physical damage to optional physical damage

216 Policy Term

Every policy or renewal shall be issued for a term of either one year or six months. See also Rule 145: Purchasing Vehicles in Jurisdiction 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

Every policy or renewal shall be issued for a term of either one year or six months. See also Rule 145: Purchasing Vehicles in Jurisdiction Where FA Does Not Operate and Rule 100.C Non Residents and Vehicle Not Registered in Jurisdiction. 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. A short term policy may also be issued for a vehicle being temporarily operated in a jurisdiction in which it is not registered. The Servicing Carrier may accept an application for




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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 149: Fleets cannot be issued for a term of 6 months.

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 149: Fleets cannot be issued for a term of 6 months.

217.C Amending or Deleting Coverage on Vehicles with Lessees or Lienholders

Where physical damage coverage is being amended or deleted on a leased vehicle or a vehicle on which there is a lienholder, the Servicing Carrier must send a notice to the lessor or lienholder to advise of the coverage being amended or deleted and the effective date of the transaction.

Where optional physical damage coverage is being amended or deleted on a leased vehicle or a vehicle on which there is a lienholder, the Servicing Carrier must send a notice to the lessor or lienholder to advise of the coverage being amended or deleted and the effective date of the transaction.


217:D Binding Coverage Policy Changes

Before physical damage coverage can be bound on a vehicle branded as ‘salvage’ or ‘rebuilt’a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier.

Before optional physical damage coverage can be bound on a vehicle branded as ‘salvage’ or ‘rebuilt’a valid vehicle registration and at the Servicing Carrier’s discretion, a current safety certificate must be provided to the Servicing Carrier.


217:E Deletions of Vehicles and Coverages

a) If the request for deletion is received by the Servicing Carrier within 30 days of the date the deletion is to be effected, the deletion shall take effect at 12:01 a.m. on the date that it was requested to be effective. In the event that the deletion was specifically requested to be effective at a time other than 12:01 a.m., the deletion shall be effected at 12:01 a.m. the following day. For example: The insured requests deletion of the vehicle/coverage to be effective September 5. The deletion request is received by the Servicing Carrier on September 20. The Servicing Carrier will issue the

a) If the request for deletion is received by the Agent/Broker within 30 days of the date the deletion is to be effected, the deletion shall take effect at 12:01 a.m. on the date that it was requested to be effective. In the event that the deletion was specifically requested to be effective at a time other than 12:01 a.m., the deletion shall be effected at 12:01 a.m. the following day. For example: The Insured requests deletion of the vehicle/coverage to be effective September 5. The deletion request is received by the Agent/Broker on September 20. The Servicing Carrier will issue the policy change effective 12:01 a.m. September 5. If the Insured requested the deletion to be effective at 3:40 p.m. on September 5, the Servicing Carrier




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endorsement effective 12:01 a.m. September 5. If the insured requested the deletion to be effective at 3:40 p.m. on September 5, the Servicing Carrier will delete the vehicle/ coverage effective 12:01 a.m. on September 6. b) If the request for deletion is received by the Servicing Carrier more than 30 days after the date the deletion was requested to be effected, the deletion will take effect at 12:01 a.m. on the date that the deletion request is received by the Servicing Carrier. For example: The insured requests deletion of a vehicle/coverage to be effective September 5. The deletion request is received by the Servicing Carrier on October 10. The Servicing Carrier will delete the vehicle/coverage effective 12:01 a.m. October 10.

will delete the vehicle/ coverage effective 12:01 a.m. on September 6. b) If the request for deletion is received by the Agent/Broker more than 30 days after the date the deletion was requested to be effected, the deletion shall take effect at 12:01 a.m. on the date that the deletion request is received by the Agent/Broker. For example: The Insured requests deletion of a vehicle/coverage to be effective September 5. The deletion request is received by the Agent/Broker on October 10. The Servicing Carrier will delete the vehicle/coverage effective 12:01 a.m. October 10. Note for a) and b) If the date the request was received by the Agent/Broker is not evident the Agent/Broker will be asked to provide proof of the date received acceptable to the Servicing Carrier. If proof cannot be provided the request will be processed effective 12:01 a.m. on the date received by the Servicing Carrier.

219:A Midterm Cancellation – Effective Date

1. Received by Servicing Carrier within 30 days If the request for a midterm 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 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 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

1. Received by Agent/Broker within 30 days If the request for a midterm cancellation is received by the Agent/Broker 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 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 midterm cancellation of the policy to be effective August 5. The cancellation request is received by the Agent/Broker 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.




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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. NOTE: For flat cancellation of renewals, refer to Rule 129:E.4. 2. Received by Servicing Carrier after 30 days If the request for 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 will cancel the policy effective 12:01 a.m. October 10.

on August 6. 2. Received by Agent/Broker after 30 days If the request for cancellation is received by the Agent/Broker 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 Agent/Broker. For example: The Insured requests cancellation of the policy to be effective September 5. The cancellation request is received by the Agent/Broker on October 10. The Servicing Carrier shall cancel the policy effective 12:01 a.m. October 10. Note for 1 and 2 If the date the request was received by the Agent/Broker is not evident the Agent/Broker will be asked to provide proof of the date received acceptable to the Servicing Carrier. If proof cannot be provided the request will be processed effective 12:01 a.m. on the date received by the Servicing Carrier.

219:E 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 thereof is not honoured by the bank, flat cancellation shall be allowed to the Agent/Broker provided that: a) the cheque was dated and issued on or before the effective date of the policy period concerned; and b) the cheque was immediately deposited; and

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 or electronic payment received for a new policy or renewal premium or, for the first installment thereof is not honoured by the financial institution, flat cancellation shall be allowed to the Agent/Broker provided that: a) the cheque was dated and issued on or before the effective date of the policy period concerned or the electronic payment was made on or before the effective of the policy period concerned; and b) the cheque was immediately deposited; and c) in the case of a first installment, the amount of

Expands rule to include dishonour of electronic payments



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c) 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 d) 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.

the cheque or electronic payment was sufficient to meet the Servicing Carrier’s requirement or if financed under a contract with a premium finance company the full down payment required under the terms of the contract; and d) The return of the cheque by the financial institution or dishonour of the electronic payment is promptly reported to the Servicing Carrier. A copy of the cheque front and back or copy of the dishonour notice 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.

221: Time on risk tables



Corrects overlapping time frames in tables.

225:C. How to allocate chargeable accidents

Paragraph 4 A chargeable accident will affect the rating of both Liability and Collision coverages.

Paragraph 4 A chargeable accident will affect the rating of Liability, DCPD and Collision coverages.


226: Accident and conviction surcharges

These surcharges are applicable to Liability (including Passenger Liability) and Collision. These surcharges are not to be applied to coverages which are experience (fleet) rated.

These surcharges are applicable to Liability (including Passenger Liability), DCPD and Collision. These surcharges are not to be applied to coverages which are experience (fleet) rated.


226:D.c. Conviction definitions - serious

Convictions for any of the following offences under the Criminal Code of Canada or under any Act governing highway traffic or under any other Act or for any offence substantially the same whether committed within or outside Canada or any conviction which appears on a driver record abstract identified as a Criminal Code conviction. Note: Where a conviction shown above is not recorded on the Driver Record Abstract as a

Convictions for any of the following offences under the Criminal Code of Canada. Where a conviction shown below is not recorded on the driver recor