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Volume 45, No. 22

B.C. Reg. 308/2002

The British Columbia Gazette,

Part II

December 3, 2002

B.C. Reg. 308/2002, deposited November 22, 2002, pursuant to the INSURANCE (MOTOR VEHICLE) ACT [Section 45]. Order in Council 1009/2002, approved and ordered November 22, 2002.

On the recommendation of the undersigned, the Administrator, by and with the advice and consent of the Executive Council, orders that

(

a) effective on the date this Order is deposited with the Registrar of Regulations, sections 1, 2 and 4 to 6 of the attached Appendix amend the Revised Regulation (1984) under the Insurance (Motor Vehicle) Act, B.C. Reg. 447/83, in respect of a certificate, policy or endorsement

(

i) that is not a renewal, and

(ii) that takes effect on or after the date this Order is deposited with the Registrar of Regulations,

(

b) effective January 1, 2003, sections 1, 2 and 4 to 6 of the attached Appendix amend B.C. Reg. 447/83, for all other purposes, and

(

c) effective on the date this Order is deposited with the Registrar of Regulations,

section 3 of the attached Appendix amends B.C. Reg. 447/83. — G. COLLINS, Minister of Finance; G. CAMPBELL, Presiding Member of the Executive Council.

Appendix

Section 1 of the Revised Regulation (1984) under the Insurance (Motor Vehicle) Act, B.C. Reg. 447/83, is amended

(

a) by adding the following definition:

"courtesy car" means a licensed vehicle rented, leased or lent to a customer by a garage service operator as a temporary substitute for a licensed vehicle

(

a) the customer has entrusted to the care, custody or control of a garage service operator for repair or servicing, or

(

b) the garage service operator has taken from the customer as payment or part payment for the purchase of another motor vehicle that is to be delivered to the customer; ,

(

b) in paragraph (

c) of the definition of "premium" by striking out "section 22 or 37" and substituting "section 23", and

(

c) by repealing the definition of "principal operator" and substituting the following:

"principal operator" means the person who will operate the vehicle described in an application for a certificate for the majority of the time the vehicle is operated during the term of the certificate; .

Part 3 is amended

(

a) in Division 1 by repealing the definition of "certificate" and substituting the following:

"certificate" means an owner's certificate; , and

(

b) by repealing Divisions 3 and 4 and substituting the following:

Division 3 — New and Renewal Certificates

Interpretation

16 In this Division, "applicant" , in relation to a leased vehicle, includes the lessee of that vehicle.

Application

17 This Division does not apply

(

a) in respect of a vehicle that

(

i) is part of a fleet,

(ii) is insured under a garage automobile policy, or

(iii) is insured under a garage non-owned automobile policy,

(

b) in respect of a trailer,

(

c) in respect of a special coverage other than a temporary change endorsement,

(

d) in respect of coverage under Division 3 or 4 of

Part 9, or

(

e) in respect of a vehicle rated in vehicle rate class 310, 320, 710 or 720.

Declaration of entitlement

18 An applicant for a certificate must

(

a) complete and sign a declaration of entitlement in the applicable form provided by the corporation, and

(

b) submit the declaration of entitlement to the corporation.

Premium for certificate

(1) The annual premium for a certificate for a vehicle, other than a U-drive, courtesy vehicle or other vehicle that has no principal operator, must be determined by reference to

(

a) the base rate premium for the vehicle,

(

b) the claim payment record of the applicant and of the principal operator of the vehicle,

(

c) the requirements of

section 22, and

(

d) the requirements of

section 24.

(2) An applicant for a certificate for

(

a) a vehicle, other than a U-drive, courtesy car or other vehicle that has no principal operator, must provide to the person receiving the application the name and driver's licence number of the applicant and of the principal operator of the vehicle, or

(

b) a U-drive, courtesy car or other vehicle that has no principal operator, must provide to the person receiving the application the name and driver's licence number of the applicant.

(3) The annual premium payable by an applicant for a certificate in respect of a U drive, a courtesy car, or other vehicle that has no principal operator must

(

a) if the vehicle is a substitute vehicle, be determined by reference to the level on Table 4 of

Schedule 1 that applies to the vehicle it replaces, and

(

b) in all cases if the vehicle is not a substitute vehicle,

(

i) for a new certificate, be the base rate premium for that vehicle, and

(ii) for a renewal certificate, be determined by reference to

section 22.

Record of chargeable claim payment

(1) Subject to subsection (2), if a chargeable claim payment is currently being used by the corporation to determine the premium for an existing certificate, the corporation must not use the same chargeable claim payment to determine the premium payable for a new or renewal certificate.

(2) If a new certificate is issued for a motor vehicle and that motor vehicle was previously insured in the same applicant's name within 30 days of the effective date of the new certificate, the corporation may use the chargeable claim payments which are currently being used to determine the premium payable for the existing certificate to determine the premium payable for the new certificate.

(3) If the corporation uses a chargeable claim payment to determine the premium payable for a new certificate, the corporation must recalculate the position on the claim-rated scale for the existing certificate without reference to the same chargeable claim payment.

(4) For the purpose of subsections (2) and (3), the corporation must refund to the applicant any difference in premium rounded to the nearest dollar and an amount ending in 50¢ must be raised to the next higher dollar, but no difference in premium is refundable if the rounded difference in premium is less than $5.

Date of chargeable claim payment

(1) For the purpose of determining the chargeable claim payments made by another insurer that form part of the claim payment record of an applicant or of the principal operator of the vehicle for which a new certificate application is made, the chargeable claim payments must be recorded as of the date of the accident in respect of which the chargeable claim payments were made.

(2) If more than one chargeable claim payment is made by the corporation in respect of one accident, the chargeable claim payments must be recorded as of the date on which the first chargeable claim payment is made following the accident.

Position on claim-rated scale

(1) In this section:

"adjusted previous level" , in relation to a vehicle for which application for a renewal certificate is made, means the level that results from adjusting the previous level by reference to the claim payment record of the applicant.

"level" means a level on Table 4 of

Schedule 1;

"previous level" , in relation to a vehicle for which application for a renewal certificate is made, means the level on Table 4 of

Schedule 1 that applies to the vehicle at the time that application for that renewal certificate is made;

"renewal level" , in relation to a vehicle for which application for a renewal certificate is made, means the level on Table 4 of

Schedule 1 that, in relation to the renewal certificate, applies to the vehicle.

(2) If application is made for a new certificate for a vehicle, or a renewal certificate for a vehicle in respect of which there has been a change in the principal operator, the corporation must determine, by reference to the claim payment record of the applicant and principal operator and the information set out in the declaration of entitlement, the level on Table 4 of

Schedule 1 that applies to the vehicle.

(3) If the applicant does not agree with the

corporation's determination under subsection (2), the corporation must, pending a review of its records, make an interim determination based on the information provided in the declaration of entitlement and any additional information provided by the applicant.

(4) If the corporation is unable, from the information provided in the declaration of entitlement, to determine the level that applies to the vehicle or if an interim determination has been made under subsection (3), the corporation must

(

a) determine, in accordance with this section, the level on Table 4 of

Schedule 1 that applies to the vehicle for which the declaration of entitlement was submitted,

(

b) inform the applicant of any change in the vehicle's level on Table 4 of

Schedule 1 and of any resulting adjustment of premium, and

(

c) if the change results in a higher premium than was paid immediately before the application under subsection (2), require the applicant to pay the difference, or if the change results in a lower premium than was paid immediately before the application under subsection (2), refund the difference to the applicant.

(5) If, at the time that an application is made for a renewal certificate for a vehicle in respect of which there is no change in principal operator, and the previous level has applied to the vehicle for at least one year, the vehicle's renewal level is to be determined as follows:

(

a) if no chargeable claim payment has been made in respect of the vehicle during the one-year scan period, the renewal level is to be one level below the adjusted previous level unless a lower renewal level applies to the vehicle under paragraph (b);

(

b) if no chargeable claim payment has been made in respect of the vehicle or the applicant during the 3-year scan period but one or more chargeable claim payments have been made in respect of the vehicle or the applicant during the 4-year scan period, the renewal level is to be the lower of

(

i) level 0, and

(ii) the level the vehicle was at, adjusted by reference to the claim payment record of the applicant, when the most recent chargeable claim payment was made in respect of the vehicle;

(

c) if one chargeable claim payment has been made in respect of the vehicle during the one-year scan period, the renewal level is

(i) 6 levels higher than the adjusted previous level if the adjusted previous level was level -3 or higher,

(ii) 5 levels higher than the adjusted previous level if the adjusted previous level was level -4, -5, -6, -7 or -8,

(iii) 4 levels higher than the adjusted previous level if the adjusted previous level was level -9, -10, -11, -12, -13 or -14,

(iv) 3 levels higher than the adjusted previous level if the adjusted previous level was level -15 or lower, or

(

v) despite subparagraphs (

i) to (iv), if the person who was operating the vehicle at the time of the accident that resulted in the chargeable claim payment

(

A) is the owner of the vehicle and, in connection with that accident, is convicted of an offence referred to in

section 55 (8) (b), (

c) or (

d) of this regulation or under

section 24 (1) or (2) of the Motor Vehicle Act ,

(

B) is not the owner of the vehicle and, in connection with that accident, is convicted of

(

I) an offence referred to in

section 55 (8) (b) (

i) of this regulation other than an offence under

section 259 (4) of the Criminal Code ,

(II) an offence referred to in

section 55 (8) (

c) or (

d) of this regulation, or

(III) an offence under a provision of the law of another jurisdiction in Canada or the United States of America that is similar to a provision referred to in subclause (I), or

(

C) is not the owner of the vehicle and, in connection with that accident, is convicted of

(

I) an offence referred to in

section 55 (8) (b) (ii) of this regulation,

(II) an offence under

section 24 (1) or (2) of the Motor Vehicle Act ,

(III) an offence under

section 259 (4) of the Criminal Code , or

(IV) an offence under a provision of the law of another jurisdiction in Canada or the United States of America that is similar to a provision referred to in subclauses (I), (II) or (III),

and the owner of the vehicle knew that the person operating the vehicle was prohibited or disqualified from driving, the renewal level is 6 levels higher than the adjusted previous level;

(

d) if more than one chargeable claim payment has been made in respect of the vehicle during the one-year scan period, the renewal level is that determined under subsection (6).

(6) For the purposes of subsection (5) (d), for each chargeable claim payment made in the one-year scan period, starting with the oldest of those payments and ending with the most recent of those payments, a new level is to be determined for the vehicle under subsection (5) (

c) in respect to each chargeable claim payment and, for that purpose, a reference in subsection (5) (c), as it applies for the purposes of this subsection, to "adjusted previous level" means

(

a) in respect to the level determined in relation to the first chargeable claim payment made in the one-year scan period, the adjusted previous level as defined in subsection (1), and

(

b) in respect to every other level determined under this subsection in relation to a chargeable claim payment, the level determined under this subsection in relation to the previous chargeable claim payment.

(7) If at the time that application is made for a renewal certificate for a vehicle in respect of which there is no change in principal operator, and the previous level has applied to the vehicle for less than one year, the vehicle's renewal level is to be determined as follows:

(

a) if no chargeable claim payment has been made in respect of the vehicle during the one-year scan period or if any chargeable claim payment made in respect of the vehicle within that period had been taken into account when determining a previous renewal level for the vehicle, the renewal level is to be the same level as the adjusted previous level;

(

b) if one or more chargeable claim payments have been made in respect of the vehicle during the one-year scan period, the renewal level is to be determined in accordance with subsection (5) (

c) if only one of those chargeable claim payments has not been previously taken into account in determining a renewal level for the vehicle;

(

c) if 2 or more chargeable claim payments have been made in respect of the vehicle during the one-year scan period, the renewal level is to be determined in accordance with subsection (5) (

d) if 2 or more of those chargeable claim payments have not been previously taken into account in determining a renewal level for the vehicle.

(8) Despite subsections (1) to (7), if the level that applies to a transitioned vehicle as defined in

Schedule 9 on January 1, 2000, is -2, -4, -6 or -8

(

a) the lowest renewal level that can apply to that transitioned vehicle is level 8 unless

(

i) there has been a period of 8 consecutive years within which no chargeable claim payment was made in respect of the vehicle,

(ii) a chargeable claim payment has been made in respect of the vehicle, or

(iii) the vehicle's adjusted previous level is different than the vehicle's previous level, and

(

b) if, before the completion of the period referred to in paragraph (a) (i), one or more chargeable claim payments is made in respect of a transitioned vehicle or that vehicle's adjusted previous level is different than its previous level, the first renewal level to be determined after the first of those payments is made or the adjusted previous level is applied, is to be determined in accordance with this

section as if

(

i) the adjusted previous level for the vehicle, or

(ii) in a case to which subsection (6) applies, the adjusted previous level for the vehicle under subsection (6) (

a) were the "Corrected Level" referred to in Table 2 of

Schedule 9 that is applicable to that vehicle.

(9) Despite any other provision of this section, for the purposes of this Part, if application is made for a renewal certificate for a vehicle and more than one year has elapsed since the expiry of the preceding certificate, the vehicle's renewal level is to be determined in accordance with subsection (2).

Discounts and surcharges

(1) The annual premium payable by an applicant for a certificate for a vehicle is

(

a) if level 0 on Table 4 of

Schedule 1 applies to the vehicle, the base rate premium,

(

b) if a level lower than level 0 applies to the vehicle, the base rate premium less a discount equal to the percentage of the base rate premium that relates to the level applicable to the vehicle, or

(

c) if a level higher than level 0 applies to the vehicle, the base rate premium plus a surcharge equal to the percentage of the base rate premium that relates to the level applicable to the vehicle.

(2) The premium payable by an applicant for a short term certificate for a vehicle is the amount payable under subsection (1) prorated in accordance with

section 15.3, plus a surcharge in the amount determined in accordance with Table 4.1 of

Schedule 1.

Driver's licence requirements

(1) For the purposes of sections 22 and 23 (1), a vehicle is not eligible for application of the following levels and the applicant is not eligible to receive the corresponding discount unless,

(

a) for level -1, the principal operator of the vehicle has held a driver's licence for a period equivalent to the one-year scan period, and

(

b) for each succeeding lower level, the principal operator of the vehicle has held a driver's licence for a period equivalent to the one-year scan period plus one year for each level below level -1.

(2) In this

section "driver's licence" includes a driver's licence issued in another jurisdiction.

(3) For the purpose of this section, the corporation may reduce the period for which a principal operator has held a driver's licence by the period of any suspension, cancellation or voluntary surrender of the principal operator's driver's licence or any period during which the principal operator was prohibited from driving.

Forfeiture

25 For the purpose of

section 19 of the Act, a declaration of entitlement is deemed to be an application for an owner's certificate.

Verification of declaration of entitlement

(1) Subject to subsections (2) and (3), the corporation must not accept a declaration of entitlement from an applicant for a new certificate if either the applicant or the principal operator was insured by another insurer during the 8 years preceding the date of the application unless the applicant attaches to the declaration of entitlement written statements from each insurer who insured the applicant or principal operator for those years verifying

(

a) whether or not the insurer made chargeable claim payments on behalf of the applicant or principal operator during the period the applicant or principal operator was insured by the insurer, and

(

b) the date of the accident in respect of which the chargeable claim payments were made.

(2) If one or more of the verifications required under subsection (1) is not attached to the declaration of entitlement, the corporation must determine the level on Table 4 of

Schedule 1 that applies to the vehicle for which application is made as if the continuous claim payment record of the applicant or principal operator, for the number of years immediately preceding the date of application for which all verification required is attached, were the applicant's or principal operator's claim payment record with the corporation.

(3) If, on application for a new certificate, an applicant cannot produce any of the verifications required by this section, the corporation must

(

a) if the applicant or principal operator or both hold a British Columbia driver's licence, determine the level on Table 4 of

Schedule 1 that applies to the vehicle for which application is made as if the driving record of the applicant or principal operator or both under the Motor Vehicle Act were the claim payment record of the applicant, or

(

b) in any case other than under paragraph (a), process the application on payment of the base rate premium.

(4) If, within 6 months after the date of application under subsection (1), an applicant to whom subsection (2) or (3) applies provides the corporation with

(

a) the written statement or statements of verification,

(

b) a properly completed application for claim-rated scale discount in the form provided by the corporation, and

(

c) payment of a service charge of $20 in respect of each vehicle for which application is made,

the corporation must redetermine or determine the level on Table 4 of

Schedule 1 that applies to the vehicle for which the application is made and, if the premium paid by the applicant exceeds the premium the applicant was liable to pay, refund the difference to the applicant.

Position of applicant to whom

section 26 applies

(1) If an applicant described in

section 26 (1) applies for a new certificate for a vehicle and complies with that section, the level on Table 4 of

Schedule 1 that applies to the vehicle must be determined by the corporation as if the applicant and the principal operator had been insured with the corporation during the preceding 8 years from the date of application for a new certificate.

(2) If the corporation has not made a chargeable claim payment on behalf of the applicant or the principal operator during the 8 years from the date of application for a new certificate, the step must be no higher than level 0.

Vehicle previously in fleet or under garage automobile policy

28 Notwithstanding

section 17, the premium payable by an applicant for a certificate in respect of a vehicle that previously formed part of a fleet or was insured under a garage automobile policy must be determined in accordance with

section 19, but the claim payment record of the applicant must be determined as though the applicant had operated the vehicle as a vehicle that was not part of a fleet or was not insured under a garage automobile policy.

Omission of chargeable claim payment

(1) If the corporation determines the premium payable by an applicant for a renewal certificate for a vehicle without reference to one or more chargeable claim payments made in respect of the vehicle, the corporation may, when the applicant next applies to the corporation for a renewal of certificate for the vehicle, determine the premium payable for the vehicle by reference to any chargeable claim payments made within a 2-year scan period that were not referenced when the certificate was last renewed.

(2) A chargeable claim payment referenced under subsection (1) is deemed to be a chargeable claim payment made during the one-year scan period for a loss or claim that occurred during the 4-year scan period.

section 58 (2) is amended by striking out "section 30" and substituting "section 15.1".

section 155 (1) is amended

(

a) in the definition of "gross premium" by striking out "section 22 (2) or 37 (2)" and substituting "section 23 (2)", and

(

b) in the definition of "net premium" by striking out "section 22 (2), 37 (2)" and substituting "section 23 (2)".

section 1 of Table 2 of

Schedule 1 is amended by repealing the definition of "courtesy car" .

section 1 of

Schedule 9 is amended in the definition of "current level" by striking out "section 36 (6) (b)" and substituting "section 22 (8) (b)".

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