Prohibited Risk Classification Elements
(Sections 410 to 417 of the Act)
16. (4.4) No element of a risk classification system shall use a lapse in automobile insurance coverage unless,
- the insured person contravened section 2 of the Compulsory Automobile Insurance Act during the lapse in coverage; or
- the lapse of coverage resulted directly or indirectly from,
(i) the termination of a policy of automobile insurance as a result of the insured person's failure to pay the premiums due under the policy,
(ii) the suspension of the insured person's driver's licence as a result of a conviction for an offence related to the use or operation of an automobile, or
(iii) an accident or a conviction for an offence related to the use or operation of an automobile, if the insured person did not inform the insurer of the accident or conviction and the accident or conviction would likely have led to the insured person being charged a higher premium.