Ontario Automobile Insurance Reforms 2016

Ontario Automobile Insurance Reforms 2016

A new standard Ontario automobile insurance policy will come into effect on June 1, 2016.

The new standard includes reductions in coverage particularly as they relate to the Statutory Accident Benefits (SAB) from the current auto policy.

This information is intended to assist brokers in the development and implementation of a plan for communicating with their clients about the Ontario Automobile Reforms. Further, it is designed to provide guidance on receiving and documenting client instructions relating to auto coverage in light of these reforms. Your clients are entitled to your advice on their options under the new standard auto policy. The presence of a clear and consistent approach toward communication and documentation will enable a broker to demonstrate if asked; that meaningful steps were taken to service their clients in a conscientious and
diligent manner.

ILScorp will have a brand new course on the Ontario Automobile Insurance Reforms 2016 available soon.

Highlights Summary

  1. A new standard automobile insurance policy will come into effect on June 1, 2016.
  2. The new standard includes reductions in coverage particularly as they relate to the Statutory Accident Benefits (SAB) from the current auto policy.
  3.  Brokers are specifically encouraged to make all reasonable efforts to advise their clients of these changes.
  4. As policies renew after June 1st, brokers should be prepared to review with their customers how the changes will impact them.
  5. Brokers should ensure client files accurately reflect discussions and instructions received.

Background

As part of the Provincial budget announced on April 23, 2015, the Ontario Government has issued some automobile insurance reforms that will become effective on June 1, 2016. Of particular interest to brokers are a new Statutory Accident Benefits Schedule – Effective June 1, 2016 (“new SABS”). There are a number of other changes to related Regulations which will also be summarized in this document. This best practices document will focus primarily on the impact of the SABS reforms.

HOW THE REFORMS MAY AFFECT YOUR AUTO CLIENTS

The new standard Ontario automobile policy, to be effective June 1, 2016, includes several significant changes from the current standard policy including provisions that will result in lower coverage for clients.

SUMMARY CHART

A Summary Chart of the most significant new policy changes that take effect on June 1, 2016, including the current policy provisions as well as consumer choices under the new policy, are set out below:

Most Significant Changes

On June 1, 2016, if a consumer is buying a new policy or renewing an existing one, brokers should be aware of the most significant changes to auto insurance:

Screen Shot 2016-05-09 at 11.09.58 AM

Some important things to remember about these choices:

Medical, Rehabilitation and Attendant Care benefits for minor injuries are fixed at a maximum limit of $3,500.

If clients purchase both the additional Medical, Rehabilitation and Attendant Care benefit for catastrophic injuries and for all injuries, the total eligible benefit amount for a catastrophic impairment would be $3,000,000.

Other Optional Benefits

There are many other options available to purchase additional or increased benefits and coverages. The following chart lists some but not all of those and indicates if those options will change on June 1, 2016. Clients can also choose not to increase any benefit or coverage. Brokers should let clients know if they had previously purchased any optional benefits. A further review of documents is required as they may have changed.

Ontario Automobile Other Optional Benefits

NOTE: This information is a sample summary and should not be relied upon to be exhaustive. For complete information follow this link:

DOWNLOAD FULL ONTARIO AUTO REFORM DOCUMENT HERE

ILScorp will have a brand new course on the Ontario Automobile Insurance Reforms 2016 available soon.

The Toronto Insurance Conference (TIC) Scholarships Program

Now in its fourth year, The Toronto Insurance Conference (TIC) is proud to offer the first ever university scholarships for applicants sponsored by TIC brokers, partners and staff, as well as other applicants who intend on a career in an insurance brokerage.

The Scholarship Program

Managed by the Insurance Institute of Ontario, the TIC Scholarship Program annually offers financial assistance in the form of up to three (3) $5,000 scholarships to eligible applicants pursuing full-time university undergraduate studies in Canada.

Selection is based on academic excellence throughout the applicant’s high school and first year post-secondary career, as well as financial need, contribution to school, community life and/or other meaningful pursuits, major accomplishments and a strong indication of academic promise.

Eligibility Criteria

To be eligible, an applicant must meet the following criteria:

 1. Applicants must be either:
a. Sponsored by a TIC broker, with the candidate sponsor being a member of the Insurance Institute of Ontario.
OR
b. Unsponsored, but able to show a clear intent towards a career in an insurance brokerage (see essay requirement)
 2. Applicants must be entering their second year or higher into a recognized, full-time university undergraduate degree program in Canada.
 3. Applicants must be registered for a full course load in such university degree program and maintain continuous full-time studies during the academic year.
 4. Scholarships are conditional upon recipients completing their current school year with grades consistent to prior years.

The split of the three scholarships awarded annually to recipients applying under each of the two criteria options are at the discretion of the Toronto Insurance Conference.

Applicants are eligible to receive a TIC scholarship a maximum of two times.

Scholarships are conditional upon recipients completing their current school year with grades consistent to prior years.

Official final transcripts (final year of high school and first year of post-secondary) and an Application for TIC Scholarship must be received between now and no later than Friday September 9, 2016 at 5:00 pm EST at 18 King Street East, 16th floor, Toronto, ON

Download Scholarship Application

Are you a self-starter who loves challenges?

Read more

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from ILSTV

You have Successfully Subscribed!

Pin It on Pinterest