Automobile Insurance Premiums Regulation

(Consolidated up to 227/2025) ALBERTA REGULATION 117/2014 Insurance Act AUTOMOBILE INSURANCE PREMIUMS REGULATION Table of Contents 1 Definitions Approval of Rating Programs for Basic and Additional Coverage 2 Required approvals 4 New insurers 5 Approval of changes to ratings programs 5.1 Board-ordered filings 6 Further filings 7 Approval of rating programs Maximum Premiums for Basic Coverage for Private Passenger Vehicles 8 Maximum premium for basic coverage for a private passenger vehicle Other Matters 9 Annual review 9.1 Returning excess premiums 9.2 Payment plans 10 Board policies and procedures 11 Information required 12 Use of prescribed forms Amendments, Review and Coming into Force 14 Repeal 16 Coming into force Definitions 1 In this Regulation, (a) “Act” means the Insurance Act ; (b) “additional coverage” has the same meaning as it has in section 549(b.1) of the Act; (c) repealed AR 227/2025 s2; (d) repealed AR 227/2025 s2; (d.1) “at-fault claim” means, in respect of liability described in section 571 of the Act or under the same or equivalent coverage in any other jurisdiction, inside or outside Canada, (i) a claim paid in respect of that liability for which the driver is wholly or partially at fault, and (ii) a claim made in respect of which the insurer has reasonably determined that a payment will or is likely to be made as a result of the fault, whole or partial, of the driver; (e) repealed AR 275/2020 s2; (f) “basic coverage” means insurance coverage required or provided for under sections 571, 573 and 585.1 of the Act; (g) “Board” means the Automobile Insurance Rate Board established under section 599 of the Act; (h) repealed AR 227/2025 s2; (h.1) “curb weight” means the total weight of a vehicle without passengers or cargo; (i) “grid” means the grid established by the Board; (j) repealed AR 275/2020 s2; (k) “insurer” means an insurer that provides basic coverage or additional coverage, or both; (l) “policyholder” means the person who holds a policy for basic coverage or additional coverage, or both; (l.1) “premium payment plan” means, (i) prior to January 1, 2025, a plan for a policyholder to pay the policyholder’s annual automobile insurance premium in a number of instalments during the term of the contract of insurance, and (ii) on or after January 1, 2025, a plan for a policyholder to pay the policyholder’s annual automobile insurance premium in an initial payment equal to 2 monthly premium instalments and thereafter in equal monthly instalments, or in 12 equal monthly instalments; (m) “private passenger vehicle” means a motor vehicle with a curb weight of 4500 kg or less that is used for (i) pleasure, (ii) driving to or from work or school, or (iii) business purposes, including farming operations, but does not include (iv) a motorcycle, power bicycle or moped, (v) a vehicle used for commercial purposes, including, but not limited to, (A) a vehicle used for transporting individuals for compensation, delivery of goods, courier or messenger service, parcel delivery, meal delivery or driver training, (B) a vehicle rated under a fleet formula, (C) a short‑term lease or rental vehicle, (D) a funeral vehicle, or (E) a vehicle held for sale or used for demonstration or testing, (vi) an emergency vehicle as defined in section 1(1)(m) of the Traffic Safety Act, (vii) a recreational vehicle, (viii) an antique motor vehicle registered under the Traffic Safety Act as an antique motor vehicle, or (ix) an all terrain vehicle, a snow vehicle, a miniature motor vehicle or any other similar off‑highway vehicle; (n) “rating program” means; (i) the rules, criteria, policies, guidelines, algorithms and rating variables used by an insurer to determine premiums for basic coverage or additional coverage, and (ii) the underwriting rules that govern the decision by an insurer to accept or decline a risk, coverage or endorsement. (o) repealed AR 227/2025 s2. AR 117/2014 s1;74/2018;275/2020;150/2023;227/2025 Approval of Rating Programs for Basic and Additional Coverage Required approvals 2 (1) No insurer may charge or collect a premium for basic coverage or additional coverage unless the insurer’s rating program with respect to that coverage has been approved in accordance with this Regulation. (1.1) Subsection (1) does not apply to any premium charged or collected by an insurer in respect of a fleet contract of automobile insurance. (2) The Board may require or prohibit the use of any component in an insurer’s rating program. AR 117/2014 s2;275/2020;227/2025 3 Repealed AR 275/2020 s4. New insurers 4 (1) An insurer that, under the Act, (a) becomes, on or after the coming into force of this Regulation, licensed in Alberta to undertake the class of automobile insurance and intends to offer basic coverage or additional coverage, or both, or (b) is licensed in Alberta to undertake the class of automobile insurance and is only offering basic coverage or additional coverage but, on or after the coming into force of this Regulation, intends to begin offering both basic coverage and additional coverage must, in accordance with the Board’s policies and procedures, file with the Board its rating program for basic coverage or additional coverage, or both, as the case may be. (2) A rating program filed in accordance with subsection (1) has no effect until it is approved by the Board under section 7. Approval of changes to ratings programs 5 (1) An insurer must, subject to the Board’s policies and procedures, file with the Board any proposed changes to its rating program. (2) Proposed changes to a rating program required to be filed under subsection (1) have no effect until they are approved by the Board under section 7. Board‑ordered filings 5.1 (1) The Board may, at any time, order an insurer to file with the Board changes to the insurer’s rating program that take into account changes in legislation, the market or the operating environment subsequent to the insurer’s most recently filed rating program. (2) The Board must give the insurer written notice of an order made under subsection (1). (3) The insurer must comply with an order made under subsection (1) within 60 days from the date notice is given unless the Board extends the time for filing. (4) Proposed changes to a rating program filed under subsection (1) have no effect until they are approved by the Board under section 7. (5) An insurer that fails to comply with an order made under subsection (1) is guilty of an offence. AR 150/2023 s3 Further filings 6 In addition to a requirement to file a rating program under section 4, 5 or 5.1, an insurer must, in accordance with the Board’s policies and procedures, file with the Board the insurer’s current rating program. AR 117/2014 s6;150/2023 Approval of rating programs 7 (1) Where an insurer files a rating program or changes to a rating program under this Regulation, the Board may, with respect to the filing, approve, reject or require changes to the rating program or to the proposed changes. (2) If the Board rejects or requires changes to a rating program, the Board must promptly serve on the insurer a written notice of the Board’s decision, and give reasons for the decision. Maximum Premiums for Basic Coverage for Private Passenger Vehicles Maximum premium for basic coverage for a private passenger vehicle 8 (1) With respect to basic coverage for a private passenger vehicle, no insurer may charge or collect a premium of more than the lesser of (a) the premium determined in accordance with a rating program approved under this Regulation, and (b) the grid premium computed by the Board. (1.1) Notwithstanding subsection (1), an insurer may charge or collect an insurance premium determined in accordance with a usage‑based insurance rating program or a pay-per-kilometre rating program approved under this Regulation that exceeds the grid premium if the insured has provided the insured’s informed consent to participate in the usage-based insurance rating program or pay‑per‑kilometre rating program, as the case may be. (2) Notwithstanding that the amount referred to under subsection (1)(a) with respect to basic coverage for a private passenger vehicle is lower than the grid premium computed by the Board, an insurer may charge the grid premium if any one or more of the following apply in respect of the relevant driver of the vehicle: (a) the relevant driver had 3 or more at‑fault claims during the preceding 6 years; (b) the relevant driver had a combination of 5 or more major or minor traffic safety convictions in the preceding 3 years; (c) the relevant driver had one or more criminal code convictions in the preceding 3 years; (d) the relevant driver had 2 or more major traffic safety convictions in the preceding 3 years; (e) the relevant driver was convicted of one or more offences for fraud relating to automobile insurance in the previous 10 years. (3) Repealed AR 275/2020 s5. AR 117/2014 s8;275/2020;150/2023 Other Matters Annual review 9 (1) The Board must, in accordance with its policies and procedures, conduct an annual review of automobile insurance trends and premiums relating to basic coverage and additional coverage for private passenger vehicles. (2) The review must consider, on an industry-wide basis, (a) loss costs, as that term is understood by the Board; (b) administrative expenses, including commissions, taxes and general expenses; (c) profitability; (d) repealed AR 275/2020 s6; (e) any other matters that the Board considers appropriate. (3) The Board must publish a preliminary report of its findings of the review. (4) Following publication of its preliminary report, the Board must invite comment from insurers and the public and must give at least 30 days for any comments to be provided. (5) The Board must publish a final report of its findings by September 30 of each year. (6) The final report must include (a) the Board’s findings on the matters referred to in subsection (2), (b) a report of the consumer perspectives, (c) the Board’s responses to comments received from the automobile insurance industry and the public, (d) the target for profitability for the following year, and (e) the target for administrative expenses for the following year. (7) Repealed AR 227/2025 s4 AR 117/2014 s9;275/2020;227/2025 Returning excess premiums 9.1 If an insurer has collected premiums that result in profitability in excess of the target for profitability established in accordance with section 9(6)(d), the Board may, subject to its policies and procedures, require the insurer to return the excess premiums, or any portion thereof, to its policyholders. AR 150/2023 s7 Payment plans 9.2 (1) Every insurer must provide the option to each policyholder who enters into or renews a contract of insurance for a private passenger vehicle to pay the policyholder’s annual insurance premium by a premium payment plan, except in one or more of the following circumstances: (a) the policyholder has had 2 or more cancellations for non‑payment of private passenger vehicle premiums in Alberta in the previous 36 months; (b) the contract of insurance insures an automobile that is not a private passenger vehicle; (c) the contract of insurance insures 5 or more automobiles under common ownership or management, commonly known as a fleet; (d) the total annual premium payable does not exceed $300; (e) the insurer requires all premiums to be paid upfront in full for every contract of insurance for private passenger vehicles. (2) An insurer that provides premium payment plans to its policyholders under subsection (1) must charge all policyholders the same reasonable rate or fee for the premium payment plan. (3) An insurer that contravenes or fails to comply with this section is guilty of an offence. AR 150/2023 s7 Board policies and procedures 10 (1) The Board must establish policies and procedures for the purpose of carrying out its functions under the Act and this Regulation. (2) The Board may, from time to time, amend its policies and procedures established under subsection (1) or establish new policies and procedures for the purpose of carrying out its functions under the Act and this Regulation. (3) The Board shall, within 30 days of making an amendment or establishing new policies and procedures under subsection (2), provide notice to the Minister of the amendment or new policies and procedures. (4) Amendments made or new policies and procedures established under subsection (2) may be reviewed by the Minister and the Minister may require the Board to change its policies and procedures. AR 117/2014 s10;275/2020 Information required 11 (1) An insurer must, at the request of the Board, provide any information to the Board that the Board considers necessary, if the information can reasonably be obtained by the insurer, taking into account the cost and practicability of doing so. (2) For the purposes of carrying out any of its functions under the Act and this Regulation, the Board may (a) specify the manner and form in which anything required to be filed or provided under this Regulation must be provided to the Board, and (b) require anything filed with or provided to the Board to be verified as true and correct by a statutory declaration made by an officer of the insurer satisfactory to the Board. (3) An insurer that contravenes or fails to comply with subsection (1) is guilty of an offence. AR 117/2014 s11;227/2025 Use of prescribed forms 12 An insurer must use any form prescribed by the Minister under section 803 of the Act. Amendments, Review and Coming into Force 13 (This section amends AR 129/2001; the amendment has been incorporated into that Regulation.) Repeal 14 The Automobile Insurance Premiums Regulation (AR 124/2004) is repealed. 15 Repealed AR 74/2018 s3. Coming into force 16 This Regulation comes into force on the coming into force of section 14 of the Enhancing Consumer Protection in Auto Insurance Act . Schedules 1 to 4 Repealed AR 275/2020 s8.