British Columbia Order in Council — Amendment to British Columbia Utilities Commission (O.C. 666/2022)

O.C. 666/2022

British Columbia — Orders in Council

666 December 12, 2022 PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. , Approved and Ordered Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that Special Direction IC2 to the British Columbia Utilities Commission, B.C. Reg. 307/2004, is amended as set out in the attached Schedule. (This

part is for admiHistrative purposes 011/y and is not part of the Order.) Authority under which Order is made: Act and section: Insurance Corporation Act, R.S.B.C. 1996, c. 228, ss. 44 and47 Other: OIC 647 /2004 R20640711

SCHEDULE Section 1 (1) of Special Direction JC2 to the British Columbia Utilities Commission, B.C. Reg. 307/2004, is amended (

a) in the definition of"capital management plan" by repealing paragraph (

b) and by adding the following paragraph: (b.

l) includes the capital provision;, (

b) in the definition of "policy year" by repealing paragraph (b.1) and by adding the following paragraph: (b.3) the period beginning on April I, 2023 and ending on March 31, 2025;, and (

c) by adding the following

definitions: "capital available for rate setting" means the amount of universal compulsory vehicle insurance capital available after deducting the following: (

a) the effect of present value in relation to the corporation's universal compulsory vehicle insurance claims liabilities; (

b) adjustments to reflect risks in relation to the corporation's universal compulsory vehicle insurance claims liabilities; "capital provision" means, in relation to a policy year, an amount equal to 7% of the required premium for that policy year; "required premium" means, in relation to a policy year, the total present value of the projected amount of each of the following for that policy year: (

a) loss and loss adjustment expense; (

b) general expenses; (

c) road safety costs and loss management costs; (

d) broker fees; (

e) tax payable by the corporation under the Insurance Premium Tax Act; (

t) income from the following: (

i) miscellaneous revenue; (ii) investment returns on capital available for rate setting; (

g) allowance required to build and maintain capital. 2

Section is amended (

a) by repealing subsection (1) (a.3), (

b) in subsection (1) by adding the following paragraph: (a.6) during the policy year, refrain from issuing a general rate change order for that policy year unless the corporation applies for the order;, (

c) in subsection (1) (

c) by striking out "(

g) and (

j) to (y)" and substituting "(g), (j), (u), (

v) and (y),", (

d) in subsection (I) (c) (i) (

B) by striking out "March 31, 2020" and substituting "March 31, 2022" and by striking out "November, 2020" and substituting "November 2022", (

e) by repealing subsection (I) (c) (i) (C), (

f) in subsection (I) (c) (ii) by striking out "August 21, 2020" and substituting "April I, 2023", (

g) in subsection (

I) by repealing paragraphs (e), (k), (I), (m), (n), (o), (p), (q), (r), (s), (t), (

w) and (x), (

h) in subsection (

I) by adding the following paragraph: (e.2) despite paragraph (d), for the policy year, ensure that rates are set in accordance with the capital management plan in existence on May 27, 2016, (

i) excluding the capital maintenance and build or release provisions of that plan, and (ii) substituting the capital provision;, (

i) in subsection (I) (

h) by adding "other than the policy year," after "insurance rates", (

j) by repealing subsection (I.I), (

k) by adding the following subsection: (I.II) Despite subsection (I) (

c) and (e.2) of this section, for each policy year for which the commission fixes universal compulsory vehicle insurance rates, other than the policy year, the commission must not decrease existing rates., and (

I) in subsections (1.2) and (1.3), by striking out "2020 and 2021" and substituting "2020, 2021 and 2023". 3

Section 3.2 is repealed. 4 The following

section is added: Directions relating to the policy year 3.4 Despite

section 3, the commission must, by June 30, 2023, exempt the corporation from the requirement to apply for a general rate change order by December 15, 2023. page3of3

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 666/2022
Type	order_in_council
Volume / chapter	arc oic 0666 2022
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	6874ad86acbf02467bc1d61e3ba5f6c0bb5604b5

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