Auto update - December 12, 2022
FSRA releases three new Guidance
- Guidance for reporting and resolution of rating and underwriting errors
- Guidance for automobile insurance non-standard forms, endorsements and certificates of insurance approval filing process
- Election not to claim direct compensation property damage coverage being implemented
Guidance for reporting and resolution of rating and underwriting errors
The Reporting and Resolution of Rating and Underwriting Errors guidance aims to promote the fair treatment of consumers and consistency in industry reporting.
This guidance informs Ontario auto insurers of FSRA’s requirements when rating and underwriting errors occur, and outlines:
- the expectation for proper notice and resolution of rating and underwriting errors for auto insurance consumers
- FSRA’s supervisory approach, ensuring rating and underwriting errors are resolved
FSRA will create and publish an annual aggregate report that summarizes the errors reported under this guidance.
In response to consultation feedback gathered from December 8, 2021, to February 25, 2022, FSRA amended the guidance as identified in the consultation summary. For example:
- the description of a major error has been amended to include a minimum dollar amount and a minimum number of exposures
- the reporting timeline has been changed to 30 business days from the time the rating and/or underwriting error is confirmed
- the option to allow insurers to set an alternate threshold has been removed to ensure consistency in reporting
This guidance will become effective on January 1, 2023.
Final guidance for Reporting and Resolution of Rating and Underwriting Errors
Consultation summary report on Reporting and Resolution of Rating and Underwriting Errors
Guidance for automobile insurance non-standard forms, endorsements and certificates of insurance approval filing process
This guidance introduces a streamlined process that reduces regulatory burden and improves the timelines for the approval of non-standard forms and endorsements.
Increasing process efficiency will also help shorten the time it takes for insurers to bring new and innovative consumer products to market.
In response to consultation feedback gathered from December 8, 2021, to February 25, 2022, FSRA amended the guidance as identified in the consultation summary. For example, service levels were amended from 25 days to 30 days to ensure consistency across all endorsement and forms filings.
Once this guidance is effective on January 1, 2023, it will replace the following filing guidelines:
Final guidance for Automobile Insurance Non-Standard Forms, Endorsements and Certificates of Insurance Approval Filing Process
Consultation summary report on Automobile Insurance Non-Standard Forms, Endorsements and Certificates of Insurance Approval Filing Process
Election not to claim direct compensation property damage coverage being implemented
FSRA continues to enable innovation and choice by approving a new standard endorsement for general use by insurers writing automobile insurance in Ontario.
The Agreement Not to Recover Loss or Damage From an Automobile Collision (OPCF49) was created in collaboration with the industry. OPCF49 gives consumers the choice to opt out of Direct Compensation - Property Damage (DCPD) coverage. The requirement for insurers to offer this optionality in Ontario Regulation 664 Automobile Insurance will be effective January 2024. Changes to the other standard documents that insurers will need to meet this requirement are listed below.
Rate filings are not required by insurers who choose to match the premium discount for this endorsement with its existing DCPD rates filed and approved by FSRA.
Insurers with proposal for innovative alternatives to physical damage cover can refer to FSRA Guidance on Test and Learn and the filing process for non-standard forms and endorsements.
- Certificate of Insurance
- Data Elements for Certificate of Insurance
- OAF 1- Ontario Application for Automobile Insurance
- OAP 1- Ontario Owners Policy
- OPCF 6B- School Bus
- OPCF 6C- Public Passenger Vehicles
- OPCF 6F- Public Passenger Vehicles- Combined Limits
- OPCF 19A- Agreed Value of Automobile
- OPCF 23A- Lienholder Protection
- OPCF 43- Removing Depreciation Deduction
- OPCF 43A - Removing Depreciation Deduction for Specified Lessee(s)
- OPCF 49- Agreement not to Recover for Loss or Damage from an Automobile Collision (OAP 1)
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.