February 2006 Archives

Many of the large Canadian P&C insurance companies announced recently that they would be adpoting the new version of the Insurance Bureau of Canada's (IBC) "advisory" standard form of the commercial general liability (CGL) policy effective January 2006.
This new policy wording will replace the current version which dates back to 1986.

Based on the official "COMPARISON BETWEEN CURRENT AND REVISED FORM" , change highlights - commercial general liabiltiy policy - IBC 2100, there are 23 changes on list.

Followings are some examples.

* The new CGL policy will incorporate some new exclusions, some of which were previously added by endorsements, such as asbestos, fungi or spores, data terrorism and abuse.

* some exclusions, definitions and conditions have been changed to reflect current trends in technology, jurisprudence and underwriting concerns.

* The new CGL policy imposes a new "general aggregate" limit which applies to premises and operations losses, personal and advertising injury and medical expenses. In the old CGL forms there was no general aggregate limit for such losses. This new general aggregate limit will apply separately from the current products/completed operations aggregate limit. The general aggregate limit does not apply to tenants' legal liability coverage which is provided on a limit "per premises" whith no aggregate.

Do you own a personal computer? Protect your investment with the proper insurance.

A growing number of people are purchasing personal computers. For many, this is a major investment trailing only behind buying a home and car in terms of expense. It is important to know how to insure your computer, says the Insurance Information Institute (I.I.I.). Coverage for computers and related accessories such as software and modems can vary from company to company, so it is very important to call your insurance professional for guidance.

Coverage Under a Homeowners or Renters Policy
If you have a homeowners or renters policy, your personal computer would be covered, in the home, against all of the basic disasters listed in the policy. So, if your computer is stolen or destroyed in a fire, you would be covered.

Some companies, however, have dollar limits for electronic equipment. This means your computer; printer and related items would be covered only for the amount (usually $5,000) listed in your policy. If you need additional coverage, you can usually raise the limits.

This is only for British Columbia.

The TransLink Board of Directors has extended the newer vehicle model year exemption to include 2003 model year vehicles in 2006 and 2007. As well, the Board exempted all hybrid vehicles, effective January 1, 2006.

These policy changes mean a 2003 model year vehicle will not require an AirCare test until its first re-licensing in 2008 and all vehicles such as the Toyota Prius and the Honda Insight, which utilize a gas/electric hybrid technology, will no longer require an AirCare inspection as a condition of re-licensing.
Aircare

Alberta insurers do no have to release records if they fall under the realm of"insurer information" as defined by the Insurance Act, according to a recent ruling by Alberta Information and Privacy Commission adjudicator Dave Bell.

The Alberta adjudicator decided the 'Freedom of Information adn Protection of Privacy Act' (the "FOIP Act") does not apply to "insurer information" as defined by the Alberta Insurance Act.

The decision was made after an applicant made an access request under the FOIP Act to the Alberta Automobile Insurance Board (AIB) for records relating to applications for rate changes by insurance companies. The AIB provided some records, but it withheld information that it said would identify the information of particular companies, as well as some more general information used to approve rates. The applicant asked for a review of these decisions to withhold information.

BC's ICBC announce that his rate of basic insurance will increase about 6.5%

On February 1st, the BC Utilities Commission (BCUC) approved ICBC's application for an interim rate increase of 6.5% on basic insurance, effective March 15. The interim rate will remain in place until the BCUC renders its final decision on 2006 basic rates, expected in late May of this year. If the BCUC approves a final rate lower than 6.5%, affected customers will receive a refund subject to the conditions ordered by the Commission.

ICBC's January 27 application to the BCUC sought a basic insurance rate increase of 6.5% for 2006 on an interim and permanent basis, as a result of significantly increased injury costs for claims.
ICBC