ORDER NUMBER
G-121-16
IN THE MATTER OF
the Utilities Commission Act, RSBC 1996, Chapter 473
and
the Insurance Corporation Act, R.S.B.C. 1996, Chapter 228, as amended
and
Insurance Corporation of British Columbia
Basic Insurance Tariff Amendments Application
BEFORE:
D. M. Morton, Commissioner
D. J. Enns, Commissioner
W. M. Everett, Commissioner
M. Kresivo, Commissioner
H. G. Harowitz, Commissioner
R. I. Mason, Commissioner
on July 28, 2016
ORDER
WHEREAS:
A. On June 22, 2016, the Insurance Corporation of British Columbia (ICBC) submitted an application (Application) with the British Columbia Utilities Commission (Commission) to amend the Basic Insurance Tariff (Tariff) related to the implementation of a new policy administration system (PAS);
B. By Order G-102-14 dated July 24, 2014, the Commission approved Tariff amendments with effective dates July 31, 2014 and November 1, 2015, as shown in Appendix A to that Order;
C. By Order G-127-15 dated July 23, 2015, the Commission approved Tariff amendments with an effective date of July 31, 2015 and certain amendments with an effective date to be finalized that will align with the implementation of the new PAS to be applied to new policies, as shown in Appendix A of that Order;
D. By Order G-127-15, the Commission also approved ICBC’s requested change of the November 1, 2015 effective date as established by Order G-102-14 to an effective date that will coincide with the implementation of the new PAS;
E. In the Application, ICBC requests approval of the following:
i. Five Tariff amendments previously approved under Orders G-102-14 and G-127-15 that had an effective date of coinciding with the implementation of the new PAS to be deferred until the functionality for these amendments is available in the new PAS;
ii. Tariff amendments related to the Temporary Operation Permit and Owner’s Certificate of Insurance, effective August 7, 2016, as outlined in Appendix A of the Application;
iii. Seven Tariff amendments with an effective date of August 21, 2016, as outlined in Appendix A of the Application.
F. In the Application, ICBC submits that the proposed Tariff amendments being brought into the new PAS in a multi-release implementation will help to ensure a smooth transition to the new PAS for customers, brokers, and ICBC internal staff;
G. The Commission reviewed the Application and considers that the Tariff amendments are warranted.
NOW THEREFORE pursuant to sections 59 to 61 [other than section 59 (2) and (3) and section 60 (1)(b)(ii) and (2) to (4)] of the Utilities Commission Act, the British Columbia Utilities Commission orders as follows:
1. The effective date of the Basic Insurance Tariff (Tariff) amendments previously approved by Orders G-102-14 and G-127-15 will be deferred until the release of additional functionality of the new policy administration system, to be applied to new policies, as requested by the Insurance Corporation of British Columbia (ICBC) and shown in items 1 to 5 in Appendix A to this order.
2. The requested Tariff amendments are approved, effective August 7, 2016, to be applied to new policies, as shown in item 6 in Appendix A to this order.
3. The requested Tariff amendments are approved, effective August 21, 2016, as shown in items 7 to 13 in Appendix A to this order.
4. ICBC must file the finalized Tariff pages at least 30 days prior to implementation of the additional functionality of the new PAS.
DATED at the City of Vancouver, in the Province of British Columbia, this 28th day of July, 2016.
BY ORDER
Original signed by:
D. M. Morton
Commissioner
Attachment
Insurance Corporation of British Columbia
Basic Insurance Tariff Amendments
|
Item |
Amendment |
Tariff Page |
Effective Date |
|
1 |
Adding Garage policies to the ICBC payment plan |
• Section 3, Other Rates, page 1 • Schedule H, pages 9 to 13 |
To be finalized – effective date to align with the release of additional functionality in the new Policy Administration System (PAS) |
|
2 |
Elimination of additional premium for Garage policies |
• Basic Insurance Premiums, page 9, Section 2.E.4, Subsection 3C. |
To be finalized – effective date to align with the release of additional functionality in the new PAS |
|
3 |
Clarification to the Basic insurance premium payable in specific instances (Premium version table for fleets and garage) |
• Basic Insurance Premiums, page 6, Section 2.D.6.1 • Basic Insurance Premiums, page 7, Section 2.E.1 • Basic Insurance Premiums, page 28, Section 2.F.11. |
To be finalized – effective date to align with the release of additional functionality in the new PAS |
|
4 |
Clarification to the Basic limits of liability for certain special coverages: • APV96 Combined Non-Resident Commercial Vehicle Permit and Insurance Certificate • APV37 Owner’s Certificate of Insurance for Highway Crossing permit • APV44 Vintage Motor Vehicle Certificate • APV49 Unlicensed Farm Tractor Certificate • APV31 Manufacturer’s Licence and Certificate of Insurance • APV33 Trailer Floater Licence and Certificate of Insurance |
• Basic Insurance Premiums, page 17, Section 2.F.2 (APV96) • Basic Insurance Premiums, page 19, Section 2.F.4.1 (APV37) • Basic Insurance Premiums, page 22, Section 2.F.6.1 (APV44) • Basic Insurance Premiums, page 23, Section 2.F.7.1, 2.F.7.2, and 2.F.7.3 (APV49) • Basic Insurance Premiums, page 24, Section 2.F.8.1 (APV31) and 2.F.8.2 (APV33) |
To be finalized – effective date to align with the release of additional functionality in the new PAS |
|
Changes to the APV38 Binder for Owner’s Interim Certificate of Insurance: • Minimum retained premium amount • Clarifications to the Basic limits of liability and number of days of the certificate • Removal of Optional insurance information |
• Basic Insurance Premiums, pages 20 and 21, Section 2.F.5 • Schedule U: Owner’s Interim Certificate of Insurance, pages 1 and 2 • Schedule V: Minimum and Retained Premiums for Special Coverages, page 1, Subsection (d) |
To be finalized – effective date to align with the release of additional functionality in the new PAS |
|
|
Clarification to the Basic Limits of Liability for Temporary Operation Permit |
• Basic Insurance Premiums, page 16, Section 2.F.1 (APV16) • Schedule R: Temporary Operation Permit and Owner’s Certificate of Insurance Premiums, pages 2 to 4 |
August 7, 2016 |
|
|
Changes to the gross vehicle weight threshold for trailers |
• Schedule B: Vehicle Rate Classes, pages 36, 37, 37A, 74, and 75 |
August 21, 2016 |
|
|
Clarifications Regarding Refunds on Cancellations |
• Schedule T: Premium Prorate Instructions, pages 1, 1A, 15 • Basic Insurance Premiums, 2.K.3.1(c), page 38 |
August 21, 2016 |
|
|
• Schedule T: Premium Prorate Instructions, pages 14, 15A, and 18 to 25 |
August 21, 2016 |
||
|
• Schedule S: Minimum and Retained Premiums, page 1 |
August 21, 2016 |
||
|
• Basic Insurance Premiums, Section 2.F.1.3, page 16 • Schedule V: Minimum and Retained Premiums for Special Coverages, page 1, Subsection (l) |
August 21, 2016 |
||
|
• Schedule T: Premium Prorate Instructions, pages 15A to 17 |
August 21, 2016 |
||
|
Clarification on Short Term Certificates |
• Definitions, page 2 • Basic Insurance Premiums, Section 2.F.6.2, page 22 • Basic Insurance Premiums, Section 2.F.10.2, page 27 • Basic Insurance Premiums, Section 2.I.1.2(b), page 35 • Basic Insurance Premiums, Section 2.M.1, page 40 |
August 21, 2016 |