In consideration of the INSURANCE CORPORATION OF BRITISH COLUMBIA
(the Corporation) entering into this agreement, (the Fleet Operator) agrees with the Corporation as follows:
1. DEFINITIONS In this agreement:
FLEET means, collectively, Fleet Numbers(s).
LOSS RATIO means the Loss Experience for the Fleet during the term of this agreement expressed as a percentage of the premium paid to the Corporation for insurance on the Fleet for the current insurance year.
LOSS EXPERIENCE means the total amount paid or payable by the Corporation in respect of all vehicles in the Fleet to which the Loss Experience pertains as a result of accidents occurring during the current insurance year but in respect of amounts paid or reserved for the payment of third party liability claims any amount over $200,000 per accident will not form part of the Fleet's Loss Experience for the purposes of this agreement.
PREMIUM PAID means the total amount of all premium paid to the Corporation for all vehicles in the Fleet after allowance for any discount or surcharge.
RETURN PREMIUM means the percentage of the Premium Paid that is to be refunded by the Corporation, if any, after an adjustment of premium has been made under section 2 below.
ADDITIONAL PREMIUM means the percentage of the Premium Paid that will be paid to the Corporation by the Fleet Operator over and above the Premium Paid after an adjustment of premium has been made under section 2 below.
2. CHOICE OF ADJUSTMENT PLAN
Subject to the terms and conditions of this agreement and subject to the provisions of the Insurance (Vehicle) Act and the Insurance (Vehicle) Regulations (the Regulation), the Fleet Operator agrees that the Premium Paid for the coverage provided to the Fleet Operator for the term set out in section 6 below or any subsequent term, as the case may be, shall be adjusted in accordance with PLAN "B" as set out in Schedule "A".
Basic Insurance Tariff Schedule K: Fleet Premium Adjustment Agreement – Plan B Page 2 Effective: June 1, 2007
3. ADJUSTMENT OF PREMIUM
The Corporation shall at the time of adjustment examine the Loss Ratio of the Fleet and based on that Loss Ratio using the Table in Schedule "A", shall calculate the amount of any Return Premium or Additional Premium owing.
The Corporation shall refund the Return Premium or the Fleet Operator shall pay the Additional Premium shown in Column II of Schedule "A", as the case may be, that corresponds to the Loss Ratio for the Fleet shown in Column I of Schedule "A".
Where as a result of adjustments made pursuant to sections 4B and 4C respectively of this agreement, premium becomes payable by the Fleet Operator, the Corporation will bill the Fleet Operator for the portion of any amount of premium as determined and that corresponds to the Loss Ratio and which had previously been refunded to the Fleet Operator as Return Premium.
4. TIME FOR ADJUSTMENT
Premium adjustments shall be made on three occasions during the term of this agreement as follows:
A. first, six months from the designated expiry month of the fleet, B. secondly, 12 months from the date of the first adjustment, and C. finally, 12 months from the date of the second adjustment.
5. PREMIUM
Where it is determined that Premium or Additional Premium is payable under this agreement, it shall be paid to the Corporation forthwith by the Fleet Operator, and section 15.7(3) of the Regulation applies in respect of any such Premium or Additional Premium due.
6. TERM OF AGREEMENT
The term of this agreement is from the day of , 20 to the day of , 20 . 7. RENEWAL
At the expiration of the term of this agreement, or any extension thereof, the term shall be deemed to be extended for a further period of one year, or for such other length of time as shall be agreed, upon the same terms and conditions as are contained in this agreement provided that if the fleet during the term of this agreement or during the term of any extension thereof is or becomes prior to or is at the time of such extension unable to meet the requirements of the Corporation’s Basic Insurance Tariff filed with the British Columbia Utilities Commission for eligibility for such an extension, this agreement or then current extension as the case may be shall be deemed to be terminated and to be null and void as of the date ending the term of this agreement or such current
Basic Insurance Tariff Schedule K: Fleet Premium Adjustment Agreement – Plan B Page 3 Effective: June 1, 2007
extension or unless either party, at least one month prior to the expiration of such term or any extension thereof, shall have given to the other notice in writing of the intention of that party to terminate this agreement at the expiration of the current term.
8. PROHIBITION OF ASSIGNMENT
The Fleet Operator may not assign this agreement without the prior written consent of the Corporation. Such consent shall not be unreasonably withheld.
9. GENERAL
This agreement shall be governed by the laws of the province of British Columbia.
This agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.
THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DAY OF ,20 .
EXECUTED BY THE FLEET OPERATOR )
) ___________________________________ )
AUTHORIZED SIGNATORY (Signature) )
) ___________________________________ ) (Print Name) ) ___________________________________ ) (Print Title) ) ___________________________________ ) AUTHORIZED SIGNATORY (Signature) )
) ___________________________________ )
(Print Name) )
___________________________________ )
(Print Title) )
EXECUTED BY THE INSURANCE ) CORPORATION OF BRITISH COLUMBIA )
) Per: ) ) Name: ) ) Title: )
Basic Insurance Tariff Schedule K: Fleet Premium Adjustment Agreement – Plan B Page 4 Effective: June 1, 2007
SCHEDULE "A"
PLAN B
COLUMN I COLUMN II
LOSS RATIO RETURN PREMIUM
25% OR LESS 35% OVER 25% TO 30% 30% OVER 30% TO 35% 25% OVER 35% TO 40% 20% OVER 40% TO 45% 15% OVER 45% TO 50% 10% OVER 50% TO 55% 5% OVER 55% TO 60% 0% ADDITIONAL PREMIUM OVER 60% TO 65% 5% OVER 65% 10%
Basic Insurance Tariff