Month: October 2018

Ontario – Benifits

Introduction Ontario Auto is a challenging place to do business.  The rules are complicated, the rates are restrictive and the government always wants to try something to make it better.  Ironically, something people haven’t grasped is the possibility that the system is accomplishing its goal: reducing accidents.  Accidents benefits also move some of the responsibility…

By c.boersma October 22, 2018 0

Common Definitions

Tort Reform Joint and Several Liability [6] ATRA Tort Reform is a theory of recovery that permits the plaintiff to recover damages from multiple defendants collectively, or from each defendant individually. Canadian Underwriter – Tort Reform Under the current joint and several legal doctrine, courts allow the plaintiff to recover all of the damages from…

By c.boersma October 22, 2018 0

Margin for Investment

Special instructions for determining the margin for investment rate returns. Weighted Formula = portfolio rate = risk-free rate = a factor between 0% and 100% to reflect a reasonable estimate as to the percentage by which would need to be adjusted to reflect a plausible shortening of the uncertain duration of the claim liabilities due to…

By c.boersma October 21, 2018 0

Corporate Governance

V. Supervision of FRFIs The Role of Corporate Governance in OSFI’s Supervisory Process Effective oversight of the business and affairs of an institution by its Board and Senior Management is essential to the maintenance of an efficient and cost-effective supervisory system. OSFI’s Supervisory Assessment OSFI supervises FRFIs to assess their financial condition and monitor compliance…

By c.boersma October 20, 2018 0

Regulatory Approaches

Objectives – AICPCU Maintain Insurer Solvency Protect Insurance consumers Ensure availability of coverage Regulate Insurance Rates Accomplished via three concepts Rate adequacy (pay for all future claims and expenses) Rates are not excessive (unreasonable profits) Not unfairly discriminatory (fair, consistent, relate to risk) Rate Regulation Systems Each province has it’s own priorities regarding the 4…

By c.boersma October 18, 2018 0

Employment Insurance

Employment Insurance (EI) provides individuals with temporary income replacement as a result of employment interruptions due to work shortages, sickness, non-occupational accidents, maternity leave, parental leave, adoption leave, and for those with family members who are seriously ill with a significant risk of death. History The Unemployment Insurance Act was first introduced as an amendment…

By c.boersma October 18, 2018 0

Workers’ Compensation

Workers’ Compensation programs have been established by legislation in each of the provinces and territories to provide benefits to employees who are injured at work. How it works Compensation to which an employee is entitled under the Acts replaces the right of legal action against the employer for damages or injuries sustained in the course…

By c.boersma October 18, 2018 0

Hospital & Medical Insurance

Canadians receive basic hospital and medical care through a system of provincial governmental plans. Legislation Canada Health Act became effective on April 1, 1984, replacing both the Hospital Insurance and Diagnostic Services Act (1958) and the Medical Care Act (1968). This act gave the power to impose financial penalties on provinces that do not allow…

By c.boersma October 18, 2018 0

Nature of Insurance Regulation

In the year following Confederation, Parliament, prompted by spectacular failures of several large insurance companies in the United States and the United Kingdom, intervened to promote the solvency of insurers. …The legislation promoted solvency by controlling the creating of domestic insurers and licensing foreign insurers, limiting the type of investments insurers could make, providing for…

By c.boersma October 17, 2018 0

Calculator Trick 1 – Duration / PV Factor

The TI-30XS has a table mode that allows for calculation of functions and summary statistics: DATA -> SELECT COLUMN -> DATA -> FORMULA -> 1: ADD/EDIT ENTER Formula: Used DATA to get access to and to use “x,y,z,t,a,b,c” variables you need a function of first hence the formula. Duration L1 L2 L3 0.5 1.5 2.5…

By c.boersma October 10, 2018 0