On Nov. 28, CSA Que amended auto insurance policy form coverages.
CSA Que amended insurance policy forms and endorsements, effective Jan. 15, 2025.
Also clarified expectations of insurers regarding the calculation of the value of damage.
Owners Form
In Q.P.F. No. 1 Owners' Form, additional coverage 4.1 Travel expenses due to theft currently provides insurer will reimburse certain travel expenses due to theft of vehicle
Including expenses for leasing of replacement vehicle, up to $40/day, $1,200 per loss.
Amends travel expenses to be reimbursed up to $3k per loss per vehicle, no daily max
Insured will have the option of leasing a vehicle similar to the vehicle that was stolen.
In addition to claiming any expenses for use of a taxicab, insured may claim expenses related to any other mode of remunerated passenger transportation by automobile.
Additional travel expenses that not normally borne by the insured will be covered.
Increase in max travel expense amount per loss for each insured vehicle is intended to reflect increase in vehicle leasing prices and changes occurring in automobile market.
Amendments to coverage 4.1-Travel expenses due to theft of insured vehicle under s. B of Q.P.F. No. 1 apply to endorsements 20, 20a, 20b, 20c, 4-20, 4-20a 4-20b, 4-20c.
Indemnity Q.E.F. 43, 4-43
Clarified expectations of insurers regarding the calculation of the value of damage.
To an insured vehicle where the designated insured holds a Q.E.F. No. 43, Option 43A – Partial loss – New parts or a Q.E.F. 4-43A, Option 4-43 – Partial loss – New parts.
Insurers must calculate value of damage for the repair of the insured vehicle on basis of cost of new original equipment manufacturer parts, not on basis of actual cash value
As specified in Article 2.1 of the section Reporting a loss and submitting a claim of the Q.P.F. No. 1 – Owners' Form and Q.P.F. No. 4 – Garage Form; noted rule not followed.
This deprives insureds of benefit of receiving an indemnity under coverage they hold (i.e., Option 43E or 4-43E) and contravenes insurer's obligation to treat clients fairly.
Indemnity Option 43E
Developed solution to facilitate settlement of claims when an insured holds Option 43E.
Accordingly, the first two indemnity options under Option 43E will continue to apply.
Replacement of specified vehicle by a new vehicle and replacement of the specified vehicle by a used vehicle or by a new vehicle other than as in first indemnity option.
Amended the third indemnity option (i.e., non-replacement of specified vehicle).
Value of damage will henceforth have to be equal to the marked-up price paid.
Plus an annually compounded % calculated in proportion to number of days elapsed between the date of the vehicle purchase contract and the date of the total loss.
By choosing this indemnity option, insureds will be able to benefit from the full value of the coverage under Option 43E even if they elect not to replace their vehicle.
Which of three indemnity options to choose is entirely up to the insured’s discretion.
Effectiveness
Insurers will have to apply revised forms to insurance contracts taken out before and after Jan. 15, 2025, until they have delivered the new versions of forms to insureds.
Amendments made to forms will become effective on Jan. 15, 2025.
Regulators
CSA; CSA Que
Entity Types
Ins
Reference
Nt, Form 1, 43, Bul Vol. 21 No. 47 p. 72, 11/28/2024
Functions
Actuarial and Valuation; Claims/Accelerated Benefits; Compliance; Legal; Operations
