The Board can charge insurers fees each fiscal year, must notify each insurer of the basic fee and due date by September 1, and may charge or reduce actuarial costs for certain approvals or reviews.
(Consolidated up to 141/2023) ALBERTA REGULATION 179/2005 Insurance Act AUTOMOBILE INSURANCE RATE BOARD FEES REGULATION Table of Contents 1 Definitions 2 Authority to charge fees 3 Calculation of basic fees 4 Other costs 6 Expiry Definitions 1 In this Regulation, (a) “Act” means the Insurance Act ; (b) “Board” means the Automobile Insurance Rate Board; (c) “insurer” means an insurer that holds a licence authorizing the insurer to undertake the class of automobile insurance. AR 179/2005 s1;118/2008 Authority to charge fees 2 (1) Each fiscal year the Board is authorized to charge insurers fees to be used to pay for the Board’s operations and for matters relating to the Board’s administration for that year. (2) The Board shall, on or before September 1 of each year, send a notice to each insurer indicating the amount of the basic fee payable under section 3 for that year and indicating the date by which the amount is due. (3) Repealed AR 118/2008 s3. AR 179/2005 s2;118/2008 Calculation of basic fees 3 (1) Subject to subsection (2), the basic fee payable by each insurer in respect of a year shall be calculated in accordance with the following formula: A = B x D C where A is the amount of the fee payable by the insurer; B is the insurer’s total direct premiums written for automobile insurance by the insurer in the previous year, as reported under sections 44 and 46 of the Act; C is the total of the direct premiums written for automobile insurance for all insurers in the previous year, as reported under sections 44 and 46 of the Act; D is the Board’s annual budget approved by the Minister for the fiscal year, less the estimated amount budgeted for costs recovered under section 4, plus or minus, as the case may be, any accumulated surplus or shortfall of prior years. (2) No fee is payable by an insurer under this section if the amount calculated for that insurer is less than $500. AR 179/2005 s3;118/2008;29/2015 Other costs 4 (1) The Board may, in respect of each application for an approval or review referred to in the following, charge an insurer the actual costs of engaging the services of an actuary for the purpose of carrying out the approval or review: (a) the approval of the insurer’s rating programs for all types of vehicles; (b) the approval of rating programs with respect to insurers licensed in the current fiscal year or for insurers licensed in the previous fiscal year whose rating program was not approved in the previous fiscal year; (c) repealed AR 29/2015 s3. (2) On application by an insurer, the Board may, in its discretion, reduce the costs charged to the insurer for engaging the services of an actuary for the purpose of carrying out an approval or review under subsection (1). AR 179/2005 s4;187/2006;118/2008;29/2015 5 Repealed AR 29/2015 s4. Expiry 6 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on April 30, 2028. AR 179/2005 s6;29/2015;177/2020;141/2023