Earlier this year you were sent draft data elements for the Certificate of Automobile Insurance (Certificate) to OPF 1. We have now finalized these elements. Attached are changes to the draft elements, and the finalized elements.
The Certificates will be approved under section 205(5) of the Insurance Act. This avoids the necessity of making a regulation under the Act.
Outlined below are guidelines regarding the Certificate. Please refer to these guidelines to ensure timely approval of your Certificate by the Commissioner.
- Effective Date
Any Certificate sent out on or after December 1, 1990 must be sent using the new format. For example, we would expect that a Certificate based on the new format will be issued for any policy with a renewal date of February 1, 1991 or later. Any new business with an effective date of December 1, 1990 or later must use the new Certificate. You may, of course, use the new format, once approved, prior to December 1, 1990. Please advise us of your company's change-over date for issuing Certificates under the new format.
- Requirements for Issuing a Certificate
A Certificate must be issued each time there is a change in premium or in coverage. The Certificate is the only document which indicates to the insured the limits and coverages in effect and their cost.
- Data Elements
As outlined on the attachment, all elements are data fields unless otherwise stated. "Text" elements must use the exact words provided. Elements do not have to be used in sequence. "Items" are suggested for organizational purposes only.
Data fields may be added or omitted, however, an explanation must be provided for the addition or omission of data fields when filing for approval of your Certificate. It should be noted that the Commission wishes to ensure the highest possible degree of uniformity across the marketplace. It is appreciated that some companies may have difficulty in conforming exactly to the draft data elements (eg., Item 5, Method of Payment). The onus is on companies to justify a deviation.
When filing your Certificate for approval, please include an example of how the form would be completed. The information included should provide enough detail to enable an insured to determine how she/he is rated and to make certain that she/he has not been misclassified. Where descriptions are not set out on the face of the Certificate, but are coded and referenced to an attached page, please provide the attachment.
- Rating Information
Please note that a new element has been introduced under Third Party Liability. Property damage has been segregated between direct compensation and other third party property damage. (See elements 25 and 26.) The Commission is aware that many company systems do not allow for the premium to be segregated. If your company cannot meet this requirement, or cannot provide a separate premium amount for the Uninsured Automobile Coverage (element 55), please provide an explanation for the reason and a date for compliance with these requirements.
Please note also that for purposes of the Accident Benefits section of the Certificate, it may be necessary to assign optional benefits to one of the automobiles on the Certificate, although optional benefits are provided on a policy basis. This is for recording purposes only. Consequently, when calculating Element 61, "Total Premium per Automobile", one of the automobiles may appear to have a higher premium due to the assignment of the optional benefits to that particular vehicle. This should in no way be interpreted to mean that optional benefits are on a "per automobile" basis.
- Submission of Certificate
In order to obtain approval, please submit two copies of your Certificate to:
Ontario Insurance Commission
Attention: Rates and Classifications Branch
Please allow four weeks for the approval process.
Donald C. Scott
September 11, 1990