which provinces/territories use 1 approach for all required vehicles
Types and sub-types of rate regulation: ACM
ACTIVE (2):
- government mandated (Alberta GRID, BC)
- prior approval (Ontario major filings)
MODERATE (3):
- file & use (PEI)
- use & file (Quebec)
- flex rating (not used in Canada)
COMPETITIVE (2):
- file only
- open competition (Nunavut, Yukon)
which provinces/territories use 1 approach for all required vehicles
NS (prior approval)
PEI (file & use)
YK, NV, NWT (open competition)
for prior approval, is NS or ON?
for open competition, NWT is included too?
Comments
I am not sure what you are trying to ask me here
in the wiki, the example of prior approval is ON but it didn't mention NS. In the BattleQuiz, is says that NS uses only the prior approval for all required vehicles. So my question would be, when we are asked to give an example of prior approval, I can either give ON or NS as an example right?
same thing for open competition, NWT is not mentioned in the wiki but in the BattleQuiz.
Originally, I didn't always include all information in the wiki if they were just simple facts. I only put them in BattleCards so the wiki wouldn't get cluttered but I have changed that. For newer articles, virtually everything is in the wiki.
For this question:
which provinces/territories use 1 approach for all required vehicles.
Is BC also a valid answer with Government Mandated. Does ICBC mandate all vehicles or do they only mandate residential use?
I would go with Saskatchewan and Manitoba to be safer since ICBC competes with private insurers for physical damages, so it is not fully government mandated. They do provide coverage for commercial vehicles, yes
Just to confirm is Saskatchewan and Manitoba government mandated as well?
How about New Brunswick and Newfoundland? Which approach do they use?
Yes for SK and NB
NB and NL are private
Just for confirm you meant "Yes for SK and MB" right?
Also since NB and NFL are private, are they prior approval or file and use or use and file?
Yes, that's correct: SK and MB. (Not NB)
Thanks
Is NB and NFL prior approval or file and use or use and file?
@Staff-T1: Is this your understanding and interpretation also?
The source text, which is only available through the study kit and not online states the following:
This reading is dated 2012 however and may not be up to date. I believe the correct and up to date information is as follows:
I have read that grading policy is to give credit for answers that are consistent with the source text OR for answers that are correct even if they differ from the source text.
Yes that is right - I would just stick to what's in the source just in the off chance your graders do not work on insurance in the Atlantic provinces, of which there are many and mistakenly grade you incorrectly
Could you briefly explain what Alberta GRID is.
I just realized when reading the AB.Auto reading that one of the reform being considered is changing "Prior Approval" to "file and use". But I recalled from this reading that Alberta is Government mandated. Now I realize is Alberta GRID. I am not from Alberta and I can't find the original reading online.
Does that mean non Grid uses Prior Approval and Grid uses government mandate?
Also what is GRID?
The Alberta GRID programme is no longer on the syllabus. There was a reading devoted entirely to GRID but it has been removed. But to answer your question:
The Alberta GRID (Grid Rating Indicator for Drivers) program is essentially the province's way of keeping auto insurance rates in check. It sets the maximum premium level that insurers can charge for basic coverage (think of it as the stuff you absolutely need, like third-party liability and accident benefits) for private passenger vehicles.
This isn't a one-size-fits-all kind of deal, though. Your spot on the GRID depends on your driving record—more demerit points or at-fault accidents, and up the GRID you go, which means you could be paying more. The idea is to encourage safer driving by directly linking your driving behavior to what you pay.
New drivers start at a certain level, and as they gain experience without incidents, they move down the GRID, paying less over time. However, if you're a seasoned driver with a clean slate, you won't be affected by this system since your insurance rate will likely be determined by your insurer's own assessment of risk, which could be lower than the GRID's maximum.
So, it's kind of like a regulatory safety net to ensure that insurance remains affordable for drivers with a less-than-perfect driving history, while also giving insurance companies the flexibility to reward safer drivers with lower rates based on their own criteria.
I see so Alberta is currently Prior Approval. But each individual's PPA is subject to Alberta GRID is a government mandated program and its basically a max CAP that the insurer can charge. This max cap is based on your driving records.
Is my interpretation correct?
I see get it now thanks!
There is two component to the premium.
Just a curious question, after the Grid Premium is collected. How does the government use this money?