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"Point in Time" Regulation Content

Insurance Corporation Act and Utilities Commission Act

Special Direction IC2 to the British Columbia Utilities Commission

B.C. Reg. 307/2004

NOTE: Links below go to regulation content as it was prior to the changes made on the effective date. (PIT covers changes made from September 19, 2009 to "current to" date of the regulation.)
SECTIONEFFECTIVE DATE
Section 1 September 24, 2009
April 29, 2010
March 19, 2013
August 25, 2016
August 9, 2018
December 14, 2020
December 12, 2022
May 8, 2024
Section 1.1 March 19, 2013
October 15, 2015
August 25, 2016
Section 1.2 October 15, 2015
August 25, 2016
August 9, 2018
Section 2 August 25, 2016
February 6, 2020
Section 3 September 24, 2009
April 29, 2010
May 31, 2012
March 19, 2013
February 18, 2014
October 15, 2015
August 25, 2016
December 7, 2016
December 19, 2016
March 3, 2017
March 28, 2017
August 31, 2017
December 18, 2017
February 2, 2018
February 26, 2018
March 1, 2018
April 13, 2018
August 9, 2018
August 9, 2018
December 10, 2018
May 10, 2019
July 8, 2019
August 21, 2019
December 9, 2019
December 12, 2019
March 5, 2020
December 14, 2020
February 12, 2021
June 10, 2021
March 25, 2022
December 12, 2022
May 8, 2024
Section 3.1 August 9, 2018
December 14, 2020
Section 3.2 February 6, 2020
December 14, 2020
December 12, 2022
Section 3.3 December 14, 2020
Section 3.4 December 12, 2022
May 8, 2024
Section 4 April 29, 2010

 Section 1 definitions of "capital available" and "MCT" BEFORE amended by BC Reg 229/2009, effective September 24, 2009.

"capital available" means capital available as that term is defined in

(a) the regulations and guidelines made under section 515 (2) of the Insurance Companies Act (Canada), and

(b) the Guidelines for Minimum Capital Test (MCT) for Federally Regulated Property and Casualty Insurance Companies number A-1 dated July, 2003 issued by the Office of Superintendent of Financial Institutions;

"MCT" means MCT as that term is defined in

(a) the regulations and guidelines made under section 515 (2) of the Insurance Companies Act (Canada), and

(b) the Guidelines for Minimum Capital Test (MCT) for Federally Regulated Property and Casualty Insurance Companies number A-1 dated July, 2003 issued by the Office of Superintendent of Financial Institutions.

 Section 1 definition of "MCT" BEFORE amended by BC Reg 108/2010, effective April 29, 2010.

"MCT" means MCT as that term is described in the Guideline for Minimum Capital Test (MCT) for Federally Regulated Property and Casualty Insurance Companies No. A dated March 2008 issued by the Office of Superintendent of Financial Institutions Canada.

 Section 1 definition of "MCT guideline" was added by BC Reg 108/2010, effective April 29, 2010.

 Section 1 definition of "capital available" BEFORE amended by BC Reg 115/2013, effective March 19, 2013.

"capital available"  means capital available as that term is described in the Guideline for Minimum Capital Test (MCT) for Federally Regulated Property and Casualty Insurance Companies No. A dated March 2008 issued by the Office of Superintendent of Financial Institutions Canada;

 Section 1 definitions of "capital management target", "customer renewal credit", "excess capital available", "existing rates", "general rate change order", "loss costs" and "loss costs forecast variance" were added by BC Reg 115/2013, effective March 19, 2013.

 Section 1 definitions of "capital management plan", "fiscal year" and "policy year" were added by BC Reg 215/2016, effective August 25, 2016.

 Section 1 definitions of "capital management target" and "excess capital available" BEFORE amended by BC Reg 215/2016, effective August 25, 2016.

"capital management target" means the MCT target, determined in a capital management plan approved by the commission, that is the total of the following:

"excess capital available" means universal compulsory vehicle insurance capital available in excess of the capital reflected in the capital management target specified in a capital management plan approved by the commission;

 Section 1 was renumbered, the definition of "extended policy period" and (2) were added by BC Reg 171/2018, effective August 9, 2018.

 Section 1 (1) definition of "policy year" BEFORE amended by BC Reg 171/2018, effective August 9, 2018.

"policy year" means the period from November 1 in one year to October 31 in the next year.

 Section 1 (1) definition of "extended policy period" BEFORE repealed by BC Reg 281/2020, effective December 14, 2020.

"extended policy period" means the period beginning on November 1, 2018 and ending on March 31, 2019 that is included in the 2017 policy year;

 Section 1 (1) (a) and (b) in the definition of "policy year" BEFORE repealed by BC Reg 281/2020, effective December 14, 2020.

(a) the 12-month period beginning on November 1, 2016 and ending on October 31, 2017;

(b) the period beginning on November 1, 2017 and ending on March 31, 2019;

 Section 1 (1) definition of "policy year", paragraphs (b.1) and (b.2) were added by BC Reg 281/2020, effective December 14, 2020.

 Section 1 (1) definition of "capital management plan", paragraph (b) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(b) includes capital maintenance and build or release provisions;

 Section 1 (1) definition of "capital management plan", paragraph (b.1) was added by BC Reg 269/2022, effective December 12, 2022.

 Section 1 (1) definition of "policy year", paragraph (b.1) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(b.1) the period beginning on April 1, 2020 and ending on April 30, 2021;

 Section 1 (1) definition of "policy year", paragraph (b.3) was added by BC Reg 269/2022, effective December 12, 2022.

 Section 1 (1) definitions of "capital available for rate setting", "capital provision" and "required premium" were added by BC Reg 269/2022, effective December 12, 2022.

 Section 1 (1) definition of "policy year", paragraph (b.3) BEFORE amended by BC Reg 96/2024, effective May 8, 2024.

(b.3) the period beginning on April 1, 2023 and ending on March 31, 2025;

 Section 1.1 was enacted by BC Reg 115/2013, effective March 19, 2013.

 Section 1.1 (part) BEFORE amended by BC Reg 192/2015, effective October 15, 2015.

MCT

1.1   For each year for which the commission fixes universal compulsory vehicle insurance rates, the MCT must be determined

 Section 1.1 BEFORE amended by BC Reg 215/2016, effective August 25, 2016.

MCT

1.1   Subject to section 1.2, for each year for which the commission fixes universal compulsory vehicle insurance rates, the MCT must be determined

(a) using data available from the most recent quarter at the time the corporation files a general rate change order, and

(b) as at the end of that year.

 Section 1.2 was enacted by BC Reg 192/2015, effective October 15, 2015.

 Section 1.2 BEFORE amended by BC Reg 215/2016, effective August 25, 2016.

MCT — 2015 rates

1.2   For rates effective November 1, 2015, despite any other provision of this Special Direction, the capital available used in the determination of the MCT under section 1.1 must be $450 million higher than the capital available set out in the data described in section 1.1 (a).

 Section 1.2 BEFORE repealed by BC Reg 171/2018, effective August 9, 2018.

MCT — 2016 rates

1.2   For rates effective November 1, 2016, despite any other provision of this Special Direction, the capital available used in the determination of the MCT under section 1.1 must be $99 million higher than the capital available set out in the data described in section 1.1 (a).

[en. B.C. Reg. 215/2016, s. 2.]

 Section 2 BEFORE amended by BC Reg 215/2016, effective August 25, 2016.

Application

2   This Special Direction is issued to the commission under section 47 of the Act and section 3 of the Utilities Commission Act.

 Section 2 BEFORE amended by BC Reg 16/2020, effective February 6, 2020.

Application

2   This Special Direction is issued to the commission under section 47 of the Act.

[am. B.C. Reg. 215/2016, s. 3.]

 Section 3 (1) (c) (ii) (E) BEFORE amended by BC Reg 229/2009, effective September 24, 2009.

(E)  the payments that the corporation is to make in that year under the agreement entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding" made between the corporation and the government as represented by the Minister of Public Safety and Solicitor General and dated December 2, 2003, and

 Section 3 (1) (c) (ii.1) was added by BC Reg 229/2009, effective September 24, 2009.

 Section 3 (1) (a) BEFORE repealed by BC Reg 108/2010, effective April 29, 2010.

(a) set, for 2004, a net income target for the corporation generally, in the amount of $36 million;

 Section 3 (1) (b) BEFORE amended by BC Reg 108/2010, effective April 29, 2010.

(b) require the corporation to achieve, by December 31, 2014, and to maintain, after that date, capital available equal to at least 110% of MCT, and, for that purpose,

(i)  Repealed. [B.C. Reg. 300/2005, s. (a).]

(ii)  the commission must set rates for the corporation's universal compulsory vehicle insurance business in a way that will allow the corporation to achieve, by December 31, 2014, and to maintain after that date, capital available in relation to its universal compulsory insurance business equal to at least 100% of MCT;

 Section 3 (1) (c) (ii.2) was added by BC Reg 108/2010, effective April 29, 2010.

 Section 3 (1) (c) (ii.3) was added by BC Reg 116/2012, effective May 31, 2013.

 Section 3 (1) (a.1) was added by BC Reg 115/2013, effective March 19, 2013.

 Section 3 (1) (b) BEFORE amended by BC Reg 115/2013, effective March 19, 2013.

(b) set rates for the corporation's universal compulsory insurance business in a way that will allow the corporation to maintain capital available in relation to its universal compulsory insurance business equal to at least 100% of MCT;

 Section 3 (1) (c) (ii.2) and (iii) BEFORE amended by BC Reg 115/2013, effective March 19, 2013.

(ii.2)  for 2010 and subsequent years, to make the payments that the corporation has agreed to make under the agreement dated for reference January 1, 2010, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding",

(iii)  for 2005 and each following year for which rates are set, to achieve or maintain, as the case may be, the capital available required by the capital available target established for that year under paragraph (b);

 Section 3 (1) (c) (iv), (c.2) and (c.3) were added by BC Reg 115/2013, effective March 19, 2013.

 Section 3 (3) BEFORE amended by BC Reg 115/2013, effective March 19, 2013.

(3)  In regulating and fixing rates for the corporation, the commission must treat any premiums levied under section 34 (1.1) (e) of the Insurance (Vehicle) Act as revenue for the corporation's universal compulsory automobile insurance business.

 Section 3 (1) (a.1) BEFORE amended by BC Reg 20/2014, effective February 18, 2014.

(a.1) beginning in 2014, require the corporation to apply annually for a general rate change order by May 31 of the year of the application for rates effective August 1 of that year;

 Section 3 (1) (c.2) (i) and (ii) (part) BEFORE amended by BC Reg 192/2015, effective October 15, 2015.

(i) for 2013, the loss costs forecast variance must not be reflected in the general rate change order, and

(ii) for 2014 and each following year for which rates are set,

 Section 3 (1) BEFORE amended by BC Reg 215/2016, effective August 25, 2016.

(1) With respect to the exercise of its powers and functions under the Act in relation to the corporation generally, the commission must do the following:

(a) Repealed. [B.C. Reg. 108/2010, s. 2 (a).]

(a.1) beginning in 2014, require the corporation to apply annually for a general rate change order by August 31 of the year of the application for rates effective November 1 of that year;

(b) set rates for the corporation's universal compulsory vehicle insurance business in a way that will allow the corporation to maintain, in relation to its universal compulsory vehicle insurance business, at least 100% of MCT;

(c) subject to paragraphs (c.1) and (e), for each year for which it fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue,

(i) for 2004, to achieve the net income target set for that year under paragraph (a),

(ii) for each following year for which rates are set, to pay the following:

(A) the costs that are to be incurred by the corporation in that year for road safety programs under section 7 (i) of the Act, including, without limitation, payments by the corporation to any level of government with respect to road safety;

(B) the costs that are to be incurred by the corporation in that year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that year in accordance with the agreement, as amended from time to time, entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003;

(C) the payments that the corporation is to make in that year under the agreement entitled "Memorandum of Understanding between B.C. Provincial Government and ICBC" and executed in February, 2003;

(D) the remuneration that the corporation is to pay in that year to persons appointed as agents by the corporation under section 9.2 of the Insurance Corporation Act for collecting government fees, fines and other amounts payable by the corporation to the government and for collecting premiums, fees, debts and other revenue on behalf of the corporation;

(E) up to and including 2008, the payments that the corporation is to make in that year under the agreement entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding" made between the corporation and the government as represented by the Minister of Public Safety and Solicitor General and dated December 2, 2003,

(ii.1) for 2009, to make the payments that the corporation has agreed to make under the agreement dated for reference January 1, 2009, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding",

(ii.2) for 2010 and subsequent years, to make the payments that the corporation has agreed to make under the agreement dated for reference January 1, 2010, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding",

(ii.3) for 2012 and subsequent years, to make the payments that the corporation has agreed to make under the agreement dated for reference April 1, 2012, between the corporation and the government as represented by the Minister of Justice and Attorney General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", including amendments and extensions to that agreement,

(iii) for 2005 and each following year for which rates are set, to achieve or maintain, as the case may be, the MCT requirement under paragraph (b), and

(iv) for 2013 and each following year, ensure that rates are set in accordance with a capital management plan approved by the commission that includes capital maintenance and build or release provisions;

(c.1) when regulating and fixing universal compulsory vehicle insurance rates, regulate and fix those rates in a manner that recognizes and accepts actions taken by the corporation in compliance with government directives issued to the corporation;

(c.2) despite paragraph (c),

(i) for 2013 and 2015, the loss costs forecast variance must not be reflected in the general rate change order, and

(ii) for 2014 and each following year, except 2015, for which rates are set,

(A) the commission may exclude some or all of that year's loss costs forecast variance from the rate fixed by a general rate change order in accordance with a capital management plan approved by the commission, and

(B) the percentage number of a rate change fixed by a general rate change order must differ from the percentage number of a rate change fixed by the previous general rate change order by no more than 1.5, and must not decrease existing rates;

(c.3) for 2014 and each following year for which the commission fixes universal compulsory vehicle insurance rates, approve a customer renewal credit if

(i) there is excess capital available,

(ii) the customer renewal credit will not result in the MCT falling below the capital management target specified in a capital management plan approved by the commission, and

(iii) the commission determines that rates fixed by general rate change orders will remain relatively stable and predictable despite the approval of the customer renewal credit;

(d) subject to subsection (2) of this section, ensure that universal compulsory vehicle insurance rates are not based on age, gender or marital status;

(e) ensure that increases or decreases in universal compulsory vehicle insurance rates are phased in such a way that those rates remain relatively stable and predictable.

 Section 3 (1) (c) and (j) BEFORE amended by BC Reg 288/2016, effective December 7, 2016.

(c) subject to paragraphs (g) and (j), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

(j) ensure that increases or decreases in universal compulsory vehicle insurance rates are phased in in such a way that those rates remain relatively stable and predictable.

 Section 3 (1) (k) was added by BC Reg 288/2016, effective December 7, 2016.

 Section 3 (1) (a.1) and (c) were added by BC Reg 319/2016, effective December 19, 2016.

 Section 3 (1) (c) (part) and (k) BEFORE amended by BC Reg 81/2017, effective March 3, 2017.

(c) subject to paragraphs (g), (j) and (k), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

(k) despite paragraph (j), within 20 days of the corporation applying for approval of a high-value vehicle charge in accordance with a government directive, approve and set the rates for the charge.

 Section 3 (1) (l) was added by BC Reg 81/2017, effective March 3, 2017.

 Section 3 (1) (c) (ii) BEFORE amended by BC Reg 119/2017, effective March 28, 2017.

(ii) to make the payments that the corporation agreed to make under the agreement dated for reference April 1, 2012, between the corporation and the government as represented by the Minister of Justice and Attorney General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", including the amendment and extension to that agreement entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding Extension and Amendment" and dated for reference April 1, 2015, and

 Section 3 (1) (a.1) BEFORE amended by BC Reg 165/2017, effective August 31, 2017.

(a.1) for the 2016 policy year, issue its final general rate change order by January 16, 2017;

 Section 3 (1) (c) (i) (B) BEFORE amended by BC Reg 165/2017, effective August 31, 2017.

(B) the costs that are to be incurred by the corporation in that policy year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that policy year in accordance with the agreement entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003, including amendments and extensions to that agreement up to and including the amendment and extension entitled "Service Agreement Addendum Changes in Costs and Services to December 31, 2015" and executed in May, 2016;

 Section 3 (1) (a.1) BEFORE amended by BC Reg 240/2017, effective December 18, 2017.

(a.1) despite paragraph (a), require the corporation to apply by September 15, 2017, for a general rate change order for rates to be effective November 1 of that year;

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 7/2018, effective February 2, 2018.

(c) subject to paragraphs (g), (j), (k) and (l), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (m) was added by BC Reg 7/2018, effective February 2, 2018.

 Section 3 (1.2) and (1.3) were added by BC Reg 22/2018, effective February 26, 2018.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 25/2018, effective March 1, 2018.

(c) subject to paragraphs (g), (j), (k), (l) and (m), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (n) was added by BC Reg 25/2018, effective March 1, 2018.

 Section 3 (1) (c) (ii) BEFORE amended by BC Reg 70/2018, effective April 13, 2018.

(ii) to make the payments that the corporation agreed to make under the agreement dated for reference April 1, 2017, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", and

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 172/2018, effective August 9, 2018.

(c) subject to paragraphs (g), (j), (k), (l), (m) and (n), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (o) was added by BC Reg 172/2018, effective August 9, 2018.

 Section 3 (1) (part), (1.2), (1.3) and (3) BEFORE amended by BC Reg 171/2018, effective August 9, 2018.

(1) With respect to the exercise of its powers and functions under the Act in relation to the corporation generally, the commission must do all the following:

(1.2) Subsection (1) (b) and (c) (iii) does not apply with respect to the fixing of rates for the 2018, 2019, 2020 and 2021 policy years.

(1.3) Despite the definition of "capital management target" in section 1, for the 2018, 2019, 2020 and 2021 policy years, the capital management target is 145% of MCT.

(3) In regulating and fixing rates for the corporation, the commission must treat any premiums levied under section 34 (1.1) (e) of the Insurance (Vehicle) Act as revenue for the corporation's universal compulsory vehicle insurance business.

 Section 3 (1) (a) and (e) (part) BEFORE amended by BC Reg 171/2018, effective August 9, 2018.

(a) require the corporation to apply by August 31 of each year for a general rate change order for rates to be effective November 1 of that year;

(e) despite paragraph (d), for the 2016 policy year and each following policy year up to and including the 2020 policy year, ensure that rates are set in accordance with the capital management plan in existence on May 27, 2016,

 Section 3 (1) (a.01) and (a.2) were added by BC Reg 171/2018, effective August 9, 2018.

 Section 3 (1) (f) BEFORE repealed by BC Reg 171/2018, effective August 9, 2018.

(f) for the 2016 policy year, ensure that rates are set based on the equity of the universal compulsory vehicle insurance business being $99 million higher than the equity set out in the data described in section 1.1 (a);

 Section 3 (1) (c) (i) (B) BEFORE amended by BC Reg 270/2018, effective December 10, 2018.

(B) the costs that are to be incurred by the corporation in that policy year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that policy year in accordance with the agreement entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003, including amendments and extensions to that agreement up to and including the amendment and extension entitled "Service Agreement Addendum Changes in Costs and Services to March 31, 2017" and executed in August, 2017;

 Section 3 (1) (c) (ii) BEFORE amended by BC Reg 270/2018, effective December 10, 2018.

(ii) to make the payments that the corporation agreed to make under the agreement, dated for reference April 1, 2018, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Extension and Amendment to Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", and

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 99/2019, effective May 10, 2019.

(c) subject to paragraphs (g), (j), (k), (l), (m), (n) and (o), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (p) was added by BC Reg 99/2019, effective May 10, 2019.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 159/2019, effective July 8, 2019.

(c) subject to paragraphs (g), (j), (k), (l), (m), (n), (o) and (p), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (q) was added by BC Reg 159/2019, effective July 8, 2019.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 190/2019, effective August 21, 2019.

(c) subject to paragraphs (g), (j), (k), (l), (m), (n), (o), (p) and (q), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (r) was added by BC Reg 190/2019, effective August 21, 2019.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 259/2019, effective December 9, 2019.

(c) subject to paragraphs (g), (j), (k), (l), (m), (n), (o), (p), (q) and (r), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (s) was added by BC Reg 259/2019, effective December 9, 2019.

 Section 3 (1) (a.3) was added by BC Reg 263/2019, effective December 12, 2019.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 49/2020, effective March 5, 2020.

(c) subject to paragraphs (g), (j), (k), (l), (m), (n), (o), (p), (q), (r) and (s) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (t) was added by BC Reg 49/2020, effective March 5, 2020.

 Section 3 (1) (a.01) to (a.2) BEFORE repealed by BC Reg 281/2020, effective December 14, 2020.

(a.01) require the corporation to include, with its application for a general rate change order to be made by December 15, 2018, those reports and statistics that, but for paragraph (a), the corporation would have been required to file with the commission by August 31, 2018;

(a.1) for the 2017 policy year, issue the following orders by January 12, 2018, based on the evidence filed with the commission by December 12, 2017:

(i) its final general rate change order;

(ii) any other final orders in respect of the corporation's revenue requirements application that was filed with the commission on September 15, 2017;

(a.2) for the purpose of fixing rates applicable to the extended policy period, by August 31, 2018, reconsider and vary the commission's final general rate change order issued January 12, 2018 to ensure that the order

(i) applies, based on evidence filed with the commission by December 12, 2017, to the extended policy period included in the 2017 policy year,

(ii) recognizes that the corporation is not required to apply for a general rate change order before December 15, 2018, and

(iii) recognizes that the corporation is not required to file with the commission, before December 15, 2018, those reports and statistics that, but for paragraph (a), the corporation would have been required to file with the commission by August 31, 2018;

 Section 3 (1) (a.4) to (a.5) were added by BC Reg 281/2020, effective December 14, 2020.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 281/2020, effective December 14, 2020.

(c) subject to paragraphs (g) and (j) to (t) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (c) (i) (B) BEFORE amended by BC Reg 281/2020, effective December 14, 2020.

(B) the costs that are to be incurred by the corporation in that policy year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that policy year in accordance with the agreement entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003, including amendments and extensions to that agreement up to and including the amendment and extension entitled "Service Agreement Addendum Changes in Costs and Services to March 31, 2018" and executed in November, 2018;

 Section 3 (1) (c) (ii) BEFORE amended by BC Reg 281/2020, effective December 14, 2020.

(ii) to make the payments the corporation agreed to make under the agreement, dated for reference April 1, 2017, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", including amendments and extensions to that agreement up to and including the amendment and extension entitled "Extension and Amendment to Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", dated for reference November 1, 2018, and

 Section 3 (1) (e.1), (u) and (v) were added by BC Reg 281/2020, effective December 14, 2020.

 Section 3 (1.1) (part) BEFORE amended by BC Reg 281/2020, effective December 14, 2020.

(1.1) Despite subsection (1) (c) and (e) (i) of this section, for each policy year for which the commission fixes universal compulsory vehicle insurance rates,

 Section 3 (1.1) (c) BEFORE repealed by BC Reg 281/2020, effective December 14, 2020.

(c) for the 2016 policy year, the percentage number of a rate change fixed by a general rate change order must not exceed 4.9.

 Section 3 (1.2) and (1.3) BEFORE amended by BC Reg 281/2020, effective December 14, 2020.

(1.2) Subsection (1) (b) and (c) (iii) does not apply with respect to the fixing of rates for the extended policy period or the 2019, 2020 and 2021 policy years.

(1.3) Despite the definition of "capital management target" in section 1, for the extended policy period or the 2019, 2020 and 2021 policy years, the capital management target is 145% of MCT.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 28/2021, effective February 12, 2021.

(c) subject to paragraphs (g) and (j) to (v) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (w) was added by BC Reg 28/2021, effective February 12, 2021.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 151/2021, effective June 10, 2021.

(c) subject to paragraphs (g) and (j) to (w) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (x) was added by BC Reg 151/2021, effective June 10, 2021.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 70/2022, effective March 25, 2022.

(c) subject to paragraphs (g) and (j) to (x) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (y) was added by BC Reg 70/2022, effective March 25, 2022.

 Section 3 (1) (a.3) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(a.3) despite paragraph (a), require the corporation to apply by February 16, 2020, for a general rate change order for rates to be effective April 1, 2020;

 Section 3 (1) (a.6) was added by BC Reg 269/2022, effective December 12, 2022.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 269/2022, effective December 12, 2022.

(c) subject to paragraphs (g) and (j) to (y) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (c) (i) (B) BEFORE amended by BC Reg 269/2022, effective December 12, 2022.

(B) the costs that are to be incurred by the corporation in that policy year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that policy year in accordance with the agreement entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003, including amendments and extensions to that agreement up to and including the amendment and extension entitled "Service Agreement Addendum Changes in Costs and Services to March 31, 2020" and executed in November, 2020;

 Section 3 (1) (c) (i) (C) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(C) the payments that the corporation is to make in that policy year under the agreement entitled "Memorandum of Understanding between B.C. Provincial Government and ICBC" and executed in February, 2003;

 Section 3 (1) (c) (ii) BEFORE amended by BC Reg 269/2022, effective December 12, 2022.

(ii) to make the payments the corporation agreed to make under the agreement, dated for reference April 1, 2020, between the corporation and the government as represented by the Minister of Public Safety and Solicitor General entitled "Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", including amendments to that agreement up to and including the amendment entitled "Amendment to Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding", dated for reference August 21, 2020, and

 Section 3 (1) (e), (k) to (t), (w) and (x) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(e) despite paragraph (d), for each policy year up to and including the 2020 policy year, ensure that rates are set in accordance with the capital management plan in existence on May 27, 2016,

(i) excluding the capital build or release provisions of that plan, and

(ii) using a calculation in relation to the capital maintenance provision that neither increases nor decreases the percentage number of a rate change fixed by a general rate change order for that policy year;

(k) despite paragraph (j), within 20 days of the corporation applying for approval of a high-value vehicle charge in accordance with a government directive, approve and set the rates for the charge;

(l) despite paragraph (j), within 20 days of the corporation applying in accordance with a government directive for approval of changes to rates in relation to multiple chargeable claim payments, approve and set changes to rates to ensure that rates set at the maximum discount on the claim-rated scale, and which currently would not increase on account of a second or third chargeable claim payment made within 3 years, will increase when 2 or more chargeable claim payments are made within 3 years, and a chargeable claim payment will result in moving no less than 6 levels on the claim-rated scale regardless of the original level;

(m) despite paragraph (j), within 20 days of the corporation applying in accordance with a government directive for approval of changes to rates so that convictions for the use of an electronic device while driving are included in determining the annual driver risk premium payable by a person for a driver's certificate, approve and set the changes to rates;

(n) despite paragraphs (j) and (l), within 10 days of the corporation applying in accordance with a government directive to not implement the changes to rates approved pursuant to paragraph (l), approve and set rates that do not include the changes set out in paragraph (l);

(o) despite paragraph (j), within 45 days of the corporation applying in accordance with the government directive dated August 3, 2018 for a redesign of rates, regulate and fix the rates using the factors, criteria and guidelines set out in that government directive;

(p) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated April 18, 2019 for changes to its rate design, approve and set the changes to rates;

(q) despite paragraph (j), within 20 days of the corporation applying in accordance with the government directive dated June 26, 2019 for approval of changes to rates in connection with the modernization of passenger transportation services, approve and set the changes to rates;

(r) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated August 16, 2019 for changes to its rate design, approve and set the changes to rates effective September 1, 2019;

(s) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated November 15, 2019 for changes to its rate design, approve and set the changes to rates effective January 1, 2020;

(t) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated February 14, 2020 for approval of changes to rates in connection with the modernization of passenger transportation services, approve and set the changes to rates;

(w) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated January 26, 2021 for changes to rates in support of a COVID-19 rebate, approve and set the changes to rates;

(x) despite paragraph (j), within 10 days of the corporation applying in accordance with the government directive dated May 18, 2021 for changes to rates in support of a COVID-19 rebate, approve and set the changes to rates;

 Section 3 (1) (e.2) was added by BC Reg 269/2022, effective December 12, 2022.

 Section 3 (1) (h) BEFORE amended by BC Reg 269/2022, effective December 12, 2022.

(h) for each policy year for which the commission fixes universal compulsory vehicle insurance rates, approve a customer renewal credit if

 Section 3 (1.1) BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

(1.1) Despite subsection (1) (c) and (e) (i) of this section, for each policy year for which the commission fixes universal compulsory vehicle insurance rates, other than the 2021 policy year

(a) the commission may, in accordance with the capital management plan, exclude some or all of that policy year's loss costs forecast variance from the rate fixed by a general rate change order, and

(b) the percentage number of a rate change fixed by a general rate change order must differ from the percentage number of a rate change fixed by the previous general rate change order by no more than 1.5, and must not decrease existing rates.

(c) Repealed. [B.C. Reg. 281/2020, s. 3 (b).]

 Section 3 (1.11) was added by BC Reg 269/2022, effective December 12, 2022.

 Section 3 (1.2) and (1.3) BEFORE amended by BC Reg 269/2022, effective December 12, 2022.

(1.2) Subsection (1) (b) and (c) (iii) does not apply with respect to the fixing of rates for the 2019, 2020 and 2021 policy years.

(1.3) Despite the definition of "capital management target" in section 1, for the 2019, 2020 and 2021 policy years, the capital management target is 145% of MCT.

 Section 3 (1) (c) (part) BEFORE amended by BC Reg 95/2024, effective May 8, 2024.

(c) subject to paragraphs (g), (j), (u), (v) and (y), for each policy year for which the commission fixes universal compulsory vehicle insurance rates, fix those rates on the basis of accepted actuarial practice so that those rates allow the corporation to collect sufficient revenue

 Section 3 (1) (z) was added by BC Reg 95/2024, effective May 8, 2024.

 Section 3.1 was enacted by BC Reg 171/2018, effective August 9, 2018.

 Section 3.1 BEFORE repealed by BC Reg 281/2020, effective December 14, 2020.

Directions relating to the extended policy period

3.1   For the purpose of fixing rates for the extended policy period, the commission must take all of the following factors and guidelines into consideration:

(a) the extended policy period is a period of transition for the corporation;

(b) during the remainder of the 2017 policy year, the corporation will be redesigning rates in accordance with the Insurance (Vehicle) Act, as amended by the Insurance (Vehicle) Amendment Act, 2018;

(c) the corporation is required by this regulation to apply, by December 15, 2018, for a general rate change order for the 2019 policy year;

(d) rates are to remain stable and predictable during the extended policy period.

[en. B.C. Reg. 171/2018, s. 6.]

 Section 3.2 was enacted by BC Reg 16/2020, effective February 6, 2020.

 Section 3.2 (3) was added by BC Reg 281/2020, effective December 14, 2020.

 Section 3.2 BEFORE repealed by BC Reg 269/2022, effective December 12, 2022.

Directions relating to the 2020 policy year

3.2   (1) Despite section 3, the commission must do all of the following by February 14, 2020:

(a) exempt the corporation from the requirements to

(i) apply for a general rate change order for the 2020 policy year by February 16, 2020,

(ii) file with the commission any reports and information that, but for the exemption, the corporation would have been required to file with the application for a general rate change order described in subparagraph (i),

(iii) make the following reports for the corporation's 2019/2020 fiscal year:

(A) an annual road safety report;

(B) an annual report on performance statistics;

(C) an annual information technology capital expenditure plan, and

(iv) file with the commission a report on the corporation's data and analytics platform project that, but for the exemption, the corporation would have been required to file by March 31, 2020;

(b) issue a final general rate change order for the 2020 policy year fixing the percentage number of the rate change at 0.

(2) The commission must require the corporation to file the report described in subsection (1) (a) (iv) as part of the corporation's application for a general rate change order for the 2021 policy year.

(3) The rate change order referred to in subsection (1) (b) is deemed to apply to the 2020 policy year as defined in paragraph (b.1) of the definition of "policy year" in section 1 (1).

[en. B.C. Reg. 16/2020, s. 2; am. B.C. Reg. 281/2020, s. 6.]

 Section 3.3 was enacted by BC Reg 281/2020, effective December 14, 2020.

 Section 3.4 was enacted by BC Reg 269/2022, effective December 12, 2022.

 Section 3.4 BEFORE amended by BC Reg 96/2024, effective May 8, 2024.

Directions relating to the 2023 policy year

3.4   Despite section 3, the commission must, by June 30, 2023, exempt the corporation from the requirement to apply for a general rate change order by December 15, 2023.

[en. B.C. Reg. 269/2022, s. 4.]

 Section 4 (1) BEFORE amended by BC Reg 108/2010, effective April 29, 2010.

(1)  With respect to the exercise of its powers and functions under the Act in relation to the corporation's optional vehicle insurance business, the commission

(a) must, for 2004, set a net income target of $0 for the corporation's optional vehicle insurance business,

(b) must require the corporation to achieve by December 31, 2010 and to maintain, after that date, capital available in relation to the corporation's optional vehicle insurance business equal to at least 200% of MCT,

(c) must require the corporation to do the following:

(i)  as at the beginning of the corporation's 2004 fiscal year, allocate to the corporation's optional vehicle insurance business that portion of the corporation's retained earnings for its 2003 fiscal year that is necessary to allow the corporation to achieve, in its 2004 fiscal year, capital available in relation to the corporation's optional vehicle insurance business equal to 170% of MCT;

(ii)  as at the beginning of the corporation's 2004 fiscal year, allocate the balance of the corporation's retained earnings for its 2003 fiscal year to the corporation's universal compulsory insurance business;

(iii)  advise the commission of those allocations, and

(d) must not fix rates applicable to optional insurance.