Summary of Amendments to the Insurance Act

• The Bill lowers insurance rates for New Brunswickers retroactive to July 1.
  
• All insurance companies doing business in New Brunswick must file new auto insurance rates by Aug. 15 and justify these rates before the Public Utilities Board (PUB). Companies that do not file new rates by that date will see their rates automatically reduced by 20 per cent.
  
• The Bill requires insurance companies to refund excess premiums to consumers retroactive to July 1, within 45 days of all of their new rates being approved by the PUB. Companies that fail to refund customers will face a fine of up to $5,000 per policy if convicted. They will also still have to refund their customers.
  
• Companies that have already filed new rates will not have to do so again. A company that files new lower rates will also be permitted to use those lower rates immediately until the PUB determines whether the company’s proposed reduction is adequate.
  
• The Bill freezes new lower rates for one year to July 1, 2004 to ensure New Brunswickers benefit from greater rate stability.
  
• Insurance companies must provide the government six months notice before withdrawing its automobile insurance products in New Brunswick. Any company that tries to withdraw its services before the six-month term expires will face a maximum $100,000 fine if convicted.