CAS Exam 6C Fall 2014, Question 3
Study guide: Exam 6C
Part a (1 point)
Identify two approaches used by Financial Services Commission of Ontario (FSCO) to regulate automobile insurance. For each approach identified, specify the classes of vehicles covered.
Part b (0.5 points)
An insurer proposes the following rate level changes to its private passenger automobile insurance business in Ontario.
| Territory | Proposed Rate Level Change |
|---|---|
| 1 | -5% |
| 2 | 0% |
| 3 | 3% |
| 4 | -15% |
| Overall | -4% |
Discuss whether the insurer would meet the conditions to use the simplified guidelines for filing these rates with FSCO.
Part c (0.5 points)
Provide two reasons FSCO may refuse to approve an automobile insurance rate filing.
Answer this question and see the worked solution
Concepts tested
- Rate Regulation
- Financial Services Regulatory Authority of Ontario
- Territorial Rating
- Risk Classification Restrictions