Government releases Terms of Reference for insurance hearing Government Services Minister Dianne Whalen today released the Terms of Reference for the Public Utilities Board (PUB) hearing into automobile, homeowner, commercial and marine insurance. The Terms of Reference outline the issues that the PUB will review and include in the public hearing process. The PUB will also detail input on other issues that are raised during the process, including public insurance. "The Terms of Reference set the parameters for the review that this government committed to having when our auto insurance reform plan was announced in March," Minister Whalen said. "I encourage everyone to participate in this process, which will set the future direction of insurance in this province." The PUB is being asked to look at a number of issues, including eliminating rating based on age, gender and marital status, and using a cap or a deductible for pain and suffering. The Terms of Reference were developed with input from the industry, insurance brokers, the law society and the consumer advocate for the insurance hearings. The hearing will be held once an updated closed claims study into the most recent claims for auto insurance is complete. This review was announced on March 17, 2004 as part of government's comprehensive insurance reform plan. At that time, government froze auto insurance rates for one year and introduced a series of auto insurance reform measures that have saved consumers an average of 15 per cent on their premiums. In addition to the issues to be addressed under the Terms of Reference, the PUB is currently holding its benchmark hearing to set the minimum and maximum amounts insurance companies can charge for auto insurance in the three rating territories. As per government's commitment, these benchmark hearings will also allow for input on the process the PUB uses to establish the benchmarks, including the issue of return on equity, as government committed to do. As part of government's comprehensive approach to insurance reform, the department will also be looking at a number of enforcement and administrative issues, including stiffer penalties for impaired drivers and providing false testimony. Media contact: Tracy Barron, Communications (709) 729-4860 or 729-4712
TERMS OF REFERENCE The Public Utilities Board shall undertake a review and report on the issues outlined below with respect to Automobile, Homeowner, Commercial and Marine insurance in the province and in addition shall detail other issues of concern raised by stakeholders participating in the review, including public insurance. Automobile Insurance
Homeowners Insurance
Commercial Insurance
Marine Insurance
Note: In addition to the issues the Public Utilities Board is directed to undertake in these Terms of Reference, the board is undertaking public hearings to review its benchmarks in respect to both commercial and private passenger automobile insurance and issues surrounding how benchmarks are established such as rate of return on equity, rate classification systems, reserves and benchmarking policies and procedures generally. 2004 10 18 10:55 a.m. |
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