April 6, 2016: Filing Decisions for the 1st Quarter of 2016 added to Decisions page
April 4, 2016: Bulletin 04-2016: Industry Private Passenger Vehicle (PPV) Benchmarks Schedule, effective April 1, 2016 added to Bulletins page
April 1, 2016: Oliver Wyman Semi-annual Review Report as of June 30, 2015 updated on 2016 Semi-annual Review page
March 16, 2016: Bulletin 03-2016: Revision to SEF 16 Endorsement (Suspension of Coverage) added to Bulletins page
Actual Cash Value (ACV) - An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss.
Automobile Insurance - A type of insurance that protects against losses involving automobiles. There is a variety of coverage that can be purchased depending upon the needs and wants of the policyholder. Third party liability for bodily injury and property damage, accident benefits, collision and comprehensive are the principal coverage offered under an automobile insurance policy.
Bodily Injury - Any physical injury to a person. The purpose of liability insurance is to cover bodily injury to a third party resulting from the negligent acts of an insured or a person operating the vehicle with the permission of the insured.
Cancellation - A policy or contract can be cancelled by the insurance company under certain circumstances such as non payment of the premium or by the policyholder at any time. There are two methods to determine refund premiums; pro-rata and short-term. When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided. When the policy is terminated prior to the expiration date at the policyholder's request, the earned premium charged would be more than the pro-rata earned premium.
Deductible - The amount of the loss that the policyholder is responsible to pay before covered benefits from the insurance company are payable. This is applicable to collision, comprehensive or specified perils coverage.
Discount - A reduction in premium based on meeting certain criteria. Insurance companies offer a variety of discounts; a few examples are multi driver discount, multi policy discount and hybrid vehicle discount.
Earned Premium - The premium that represents the period of time for which coverage has been in force.
Effective Date - The date of inception of an insurance policy, or the date that coverage has been added or deleted from the policy. Unless a time is specifically requested, commences at 12:01 a.m. on the effective date.
Endorsement - A written agreement that changes the terms of an insurance policy by adding or subtracting coverage.
Exclusion - A contractual provision in an insurance policy that denies or restricts coverage for certain perils, persons, property, or locations.
Expiry Date -The date at which an insurance policy ends. Unless a time is specifically requested, coverage ends at 12:01 a.m. on the expiry date
First Party - The policyholder (insured) in an insurance contract.
Indemnity - Restoring an individual to the position they were in immediately prior to the loss. Deductions would be made where repair or replacement improved the condition of the property, e.g., where new tires replaced slashed tires that were 50% worn.
Insured - The policyholder(s) entitled to covered benefits in case of an accident or loss.
Insurer - The insurance company that issues the insurance policy and agrees to pay for losses and provide covered benefits.
Liability Limits - The maximum amount of insurance for which all third party claims for bodily injury or property damage as a result of one accident, would be paid.
Limits - The maximum amount of benefits the insurance company agrees to pay in the event of a loss.
Peril - A danger or hazard that can cause a loss, for example, collision with an object or a fire.
Policy - A contract that states the rights and duties of the insurance company and the insured.
Policyholder - The person or entity to which the policy is issued.
Premium - The price of insurance paid to the insurance company for a policy.
Property Damage - Damage to another person's property. The purpose of liability insurance is to cover property damage to a third party resulting from the negligent acts of an insured.
Quotation - An estimate of the cost of insurance based on the information supplied to the agent, broker, or insurance company.
Rate group - The majority of insurance providers employ an assessment system that assigns a numerical value based on its expected and actual claims loss experience for each make, model and model-year of car. The higher the expected claims costs, the higher the rate group and therefore the higher the insurance premium charged.
Rating Factors - Criteria that is used in determining the insurance premium for a driver. Examples of rating factors include where you live (territory), claims, driving convictions, age and use of vehicle.
Regulator - The federal, provincial or territorial government agency responsible for the control and regulation of the insurance industry under its jurisdiction.
Renewal - An offer to extend insurance coverage for another term subject to payment of premium.
Replacement Cost - The amount that it costs to replace lost or damaged property with new property of like kind and quality.
Salvage - Damaged policyholder property that is legally signed over to an insurer in a loss settlement. Insurance companies sell salvaged property in order to reduce the overall loss.
Subrogation - The process of recovering the amount of claims damages paid out to a policyholder from the legally liable party. When a company pursues the legally liable third party, they are required to include the policyholder's deductible in the recovery process.
Superintendent Of Insurance - The chief officer of the Government Department which regulates insurance.
Surcharge - An extra charge applied to the premium by an insurance company, usually applied to as a result of driving convictions or an at-fault claim.
Third Party - An individual other than the policyholder or the insurance company who has suffered a loss and may be able to collect compensation under the policy due to the negligent acts or omissions of the policyholder.
Total Loss - Damage or destruction to real or personal property to such extent that it cannot be rebuilt or repaired to its condition prior to the loss or when it would be cost prohibitive to repair or rebuild in comparison to the value of the property prior to the loss.
Usage Based Insurance (UBI) - Usage-based insurance calculates your premium based on electronically collected data about your driving habits; this can include time spent driving, miles driven, braking habits, acceleration, etc.