Myrna has moved from Ontario to Alberta and is confused about the differences in her auto insurance policies between the two provinces. The document provides information to help explain the key differences, including: - Alberta operates under a tort system rather than no-fault like Ontario, meaning insured parties may need to sue privately to be compensated if not at fault in an accident. - In Alberta, collision coverage is important for both at-fault and not-at-fault accidents, unlike in Ontario where drivers can rely on DCPD coverage if not at fault. - Several examples are given to illustrate claim scenarios under the different systems and coverage options. - Driver licensing programs and classes also differ, with Alberta

2. Myrna has just moved from
Ontario to Alberta and is really
confused about the differences
on her insurance policy…
Lets give her a
hand!

3. Fault or No Fault: What’s the
Difference?
No-fault insurance exists
to ensure that those
injured in a collision receive
compensation and benefits
from their own insurance
company, regardless of
fault.

4. Direct Compensation
We say that you get to go HOME (to your own
insurance company)
for physical damage to your vehicle to the
percentage (%) you are NOT AT FAULT
Michelle Dulmage

5. A Claim Situation:
Ontario
Coverage
(AF)
Collision
Purchased
Collect damage under own policy
and pay Deductible to repair.
(AF)
Collision NOT
Purchased
No coverage available
(NAF)
Collision
Purchased
Paid for under own policy (under
DCPD) subject to a deductible
(usually $0)
(NAF)
Collision NOT
Purchased
Paid for under own policy (under
DCPD) subject to a deductible
(usually $0)
Wow! I am so glad I
live in Ontario.
If I’m Not At Fault, I
have my comfy cushion
of DCPD to relay on.
I could really use
an example to
make this
AF/NAF Stuff
clear.. Hem Hem…

6. Example: Ontario
Driver A:
Liability: 2 million
Collision: 500 Deductible
Comprehensive: 300
Deductible
Driver “A” is deemed to be
100% At fault
Driver B:
Liability: 2 million
Collision: 500 Deductible
Comprehensive: 300
Deductible
Driver “A” is deemed to be
100% Not At fault
I wonder what
would happen if
I lived in
Alberta.
Whoa!!
That guy was a
Johnny Midnight!
Glad she had
DCPD ..
Am I right!

8. Alberta operates under a Tort system.
What is a Tort?
A “Tort” is a legal wrong
How does this Tort System effect Insured's?
Alberta Insured's don’t always have the option of coming back
to their policy when they are Not At Fault.
This is because they don’t have DCPD coverage.
As a result, Alberta insured's must sue privately in order to
be indemnified when they don’t have the appropriate coverage
on their policies.
Even when they are NOT AT FAULT!!

9. A Claim Situation:
Ontario Alberta
Coverage Outcome
(AF)
Collision
Purchased
Collect damage under own policy
and pay Deductible to repair.
(AF)
Collision NOT
Purchased
No coverage available
(NAF)
Collision
Purchased
Paid for under own policy (under
DCPD) subject to a deductible
(usually $0)
(NAF)
Collision NOT
Purchased
Paid for under own policy (under
DCPD) subject to a deductible
(usually $0)
Coverage Outcome
(AF)
Collision
Purchased
Collect damage under own policy and
pay Deductible to repair.
(AF)
Collision NOT
Purchased
No coverage available
(NAF)
Collision
Purchased
Option One:
Pay for under own policy subject to
deductible . Wait to be reimbursed
for deductible
Option Two:
File a claim with own insurer and wait
for 3rd party company to pay for
entire amount. 2 weeks/ 2 months
(NAF)
Collision NOT
Purchased
No assistance from insurance
company. Need to contact 3rd party
insurance directly and work with
them

10. Example One: Alberta
Driver A:
Liability: 2 million
Collision: 500 Deductible
Comprehensive: 250 Deductible
Driver “A” is deemed to be
100% At fault
Driver B:
Liability: 2 million
Collision: 500 Deductible
Comprehensive: 250 Deductible
Driver “A” is deemed to be
100% Not At fault
Ok, I guess she
still gets
covered, but
what if I don’t
have collision
coverage?

11. Example Two: Alberta
Driver A:
Liability: 2 million
Collision: 500 Deductible
Comprehensive: 250 Deductible
Driver “A” is deemed to be
100% At fault
Driver B:
Liability: 2 million
Comprehensive: 250
Deductible
Driver “A” is deemed to
be 100% Not At fault
Are you
kidding me …
I miss my
DCPD

12. Example Three: Alberta
Driver A:
Liability: 2 million
Comprehensive: 250Deductible
Driver “A” is deemed to
be 100% At fault
Driver B:
Liability: 2 million
Comprehensive: 250 Deductible
Driver “A” is deemed to
be 100% Not At fault
What?
Doesn’t seem very
fair. I better get
Collision coverage
on my policy!

13. Example Four: Alberta
Driver A:
Liability: 2 million
Comprehensive: 250Deductible
Driver “A” is deemed to be
50% At Fault
50% Not At Fault
Driver B:
Liability: 2 million
Comprehensive: 250 Deductible
Collision: 500 Deductible
Driver “A” is deemed to be
50% At Fault
50% Not At Fault
Wow!!
Pays to have
Collision coverage !!

14. COLLISION
(Alberta)
Not At FaultAt Fault
COLLISION
(Is needed for At Fault and Not at Fault Accidents)
If you don’t have collision coverage you are NOT covered in either situation
Collision (in Alberta) acts as a DCPD and COLLISION rolled into One.

15. ConvictionsAlberta
• Moving violations
• Suspensions are the
same
• Fines will still be applied
but they are not ratable
on the policy
Ontario
• Moving violations
• Seatbelt
• Cell phone
• Failure to provide pink
card
• ETC…
So, I’ll likely have
to pay a fine, but
in AB if its not a
moving violation it
isn't ratable on
the policy?
AMAZING!!

17. Coverage Comparison
Ontario Alberta
Coverage AB
Liability 2 Million
Accident Benefits No Increases
Available
Uninsured Same
DCPD N/A
Collision 500
Comprehensive 250
13D On every policy
Coverage ONT
Liability 2 Million
Accident Benefits Optional Increases
Uninsured Same
DCPD √
Collision 500
Comprehensive 300

19. Drivers License Format
Ontario:
Emily Duggan
DOB: Dec 31 1984
D9225- 54428-46231
Alberta:
123456-789
Male: 1-2
Female: 5-6
Day of the Month
Year of Birth
Same as the rest of the
family. This will not
change until there is a
name change, marriage or
divorce etc.

20. Drivers License Format
Alberta:
Ewa Krempa
DOB: December 07 1981
144107-851
The numbers are
a random
selection?
That’s much
easier!

21. License Classes
Class 1 (Professional - Any vehicle)
Class 2 (Professional - Bus)
Class 3 (3-axle plus)
Class 4 (Professional - Taxi, Ambulance)
Class 5 (2-axle - Cars, Light Trucks, Motor Homes or Mopeds)
Class 6 (Motorcycle & Moped)
Class 7 (Learners - 2-axel & Motorcycle & Moped)

22. Alberta's Graduated Driver
Licensing Program
Graduated Driver Licensing (GDL) has
changed the way new drivers are licensed
in Alberta. The GDL program ensures new
drivers, regardless of age, get the
support, skills and experience they need
to handle the complex task of driving.

23. 1 STAGE ONE: LEARNER
To obtain a Learner’s License (Class 7)
you must:
• Be 14 years of age or older.
• Pass a vision test and a knowledge
• test on the rules of the road.
• Have parental consent if you are under 18 years of age.
• Have valid identification.
Learner’s Conditions
• Must hold the Learner’s license (Class 7) for at least 1 year.
• Must be accompanied by a fully licensed (non-GDL
probationary) driver who is 18 years of age or older and who is
seated next to the driver.
• Not permitted to drive from midnight to 5 A.M.
• Not permitted to have more passengers than seat belts
• They will be suspended at 8 demerit points rather than the 15
for fully licensed drivers.
• Have a zero alcohol level.

24. 2 STAGE TWO: PROBATIONARY
To become a Probationary Driver (Class 5-GDL) you must:
• Be 16 years of age or older.
• Have held a Class 7 license at least one year.
• Pass the basic Alberta Class 5 road test.
Probationary Conditions
• Must spend a minimum of 2 years as a probationary driver.
• Not permitted to have more passengers than seat belts.
• They will be suspended at 8 demerit points rather than the 15 for fully licensed
drivers.
• Have a zero alcohol level.
• No upgrading to a commercial license (Classes 1, 2, 3 or 4).
• Cannot serve as an accompanying driver to a learner.
To become a fully licensed driver (Class 5) you must:
• Have been suspension free for the last year of the 2-year Probationary Stage.
• Pass an advanced road test.

25. Stage1 + Stage 2
It will take a minimum of 3 years to complete both stages of
Graduated Driver Licensing. It will take 4 years if you get your
Learner’s License at 14 years of age.
To become a Probationary Driver you must:
– Be 16 years of age or older.
– Pass the basic Alberta Class 5 road test.
Probationary Conditions
– Must spend a minimum of 2 years as a probationary driver.
– Not permitted to have more passengers than seat belts.
– They will be suspended at 8 demerit points than fully licensed
drivers at 15.
– Have a zero alcohol level.
– No upgrading to a commercial license (Classes 1, 2, 3 or 4).
– Cannot serve as an accompanying driver to a learner.

26. To become a fully licensed
driver (Class 5) you must:
– Have been suspension free for the last
year of the 2-year Probationary Stage.
– Pass an advanced road test.

27. Motorcycle
If you apply for a Motorcycle License (Class 6) as
your first license, you are subject to the
conditions of the Graduated Licensing Program.
– If learning to drive a motorcycle, you must be 16
years of age and are not permitted to drive during
nighttime hours.
– You must be accompanied by a fully licensed (non-
GDL probationary) driver who is 18 years of age or
older and is either seated on the motorcycle with
you or is following you in close proximity in or on
another motor vehicle.

28. Driver Assignment
Rules For Adding Drivers in Alberta
P/O: Everyone in the P/O added at least once. The individual
who uses the vehicle the most should be rated as the P/O of
the corresponding vehicle.
OCC: Class 05/06 Driver added to the highest rated vehicle
(under age 25, and not listed as P/O of a vehicle)
Secondary: used when we need to rate for a second drive
who is not an OCC and is not being rated on another vehicle.
(usually used when there is only 1 vehicle)
Not included in Rating: Used when a driver has
already been listed as P/O or OCC of another vehicle
Excluded: Only used when a driver has provided a signed
28A. The driver is not permitted to have any use the vehicle.
They will not have coverage. This endorsement should be
offered with care.
2015 Scion – P/O
2015 Scion FRX
2015 Scion – S
Driver #1
• Linda Smith
• Age 60 years old
• Class 5
• She drives the
2015 Scion FRX
the most
• Drives to work
• 15 km one way
• 30,000 annual
Driver #2
• Carl Smith
• Age 63 years old
• Class 5
• He currently does
not work and
occasionally uses
the vehicle for
pleasure.

29. Driver Assignment
Driver #1
• Linda Jones
• Age 60 years old
• Class 5
• She drives the 2015 Scion
FRX the most
• Drives to work
• 15 km one way
• 30,000 annual
Driver #2
• Stacy Jones
• Age 22
• Class 5
• She drives the 2008 Toyota
Corolla the most
• 11 km one way
• 10,000 annual
Driver #3
• Robby Jones
• Age 15
• Class 7
(This is equivalent to the G1)
2008Toyota Corolla 2015 Honda Civic 2015 Scion FRX
2015 Scion – P/O
2015 Honda – N/R
2008 Toyota- N/R
2015 Scion – N/R
2015 Honda – N/R
2008 Toyota- P/O
Robby only has his Class 7
Therefore, either Stacy or
Linda
Could be rated as P/O on the
2015 Honda
*Create f/up for Class 5

30. Driver Assignment
Driver #1
• Linda Jones
• Age 60 years old
• Class 5
• She drives the 2015 Scion
FRX the most
• Drives to work
• 15 km one way
• 30,000 annual
Driver #2
• Stacy Jones
• Age 22
• Class 5
• She drives the 2008 Toyota
Corolla the most
• 11 km one way
• 10,000 annual
Driver #3
• Robby Jones
• Age 15
• Class 5
• Linda advises that he will
be sharing the 2008
Toyota with his sister.
2008Toyota Corolla 2015 Honda Civic 2015 Scion FRX
2015 Scion – P/O
2015 Honda – N/R
2008 Toyota- N/R
2015 Scion – N/R
2015 Honda – N/R
2008 Toyota- P/O
2015 Scion – N/R
2015 Honda – P/O
2008 Toyota- N/R

31. Driver Assignment
Driver #1
• Linda Jones
• Age 60 years old
• Class 5
• She drives the 2015 Scion
FRX the most
• Drives to work
• 15 km one way
• 30,000 annual
Driver #2
• Stacy Jones
• Age 22
• Class 5
• She drives the 2008 Toyota
Corolla the most
• 11 km one way
• 10,000 annual
Driver #3
• Robby Jones
• Age 15
• Class 5
• Linda advises that he will
be sharing the 2008
Toyota with his sister.
2008Toyota Corolla 2015 Scion FRX
2015 Scion – P/O
2008 Toyota- N/R
2015 Scion – N/R
2008 Toyota- P/O
2015 Scion – OCC
2008 Toyota- N/R

33. Determining the Relevant Date
Relevant Date will fall under two categories:
Category One:
Driver was insured in Alberta during the implementation
of Auto Insurance reform
(October 01, 2003- October 01, 2003)
Category Two:
Driver becomes insured in Alberta anytime
(After October 01 ,2004)
Oct 01, 2003 – Oct 01, 2003
Auto Insurance Reform
Post  Oct 01,2004Prior to  Oct 01,2003
Category One Category Two

34. Determining the Relevant Date
Category One:
Driver Was Insured in Alberta during the
Implementation of Auto insurance
Relevant date will be:
- First time the insured/ driver was placed on the grid
- Most recent date a new or renewed basic policy
coverage came into effect between October 01, 2003
and October 01, 2004
Oct 01, 2003 – Oct 01,2004
Auto Insurance Reform
Post  Oct 01,2004Prior to  Oct 01,2003
Category One Category Two

35. Finding the Date of Relevance
January February March April May June July August September
Before OCT 01, 2003
Defaults to 2004
Between
October 01, 2003-Oct 01 2004
Defaults to2003
October November December
If the client was first insured before Auto Reform began October 01 2003
then their Relevance date defaults to Month, Day, 2004
If the client was first insured after Auto Reform began October 01, 2004 then their relevance date default to the actual date
they were first insured.
E.g. Auto Reform Ended Oct 01 2004. If the Insured was first Insured October 02 2004 then their relevance date would be
October 02 2004
If the client was first insured while Auto Reform was in Progress October 01, 2003 – October 01 2004 , then their relevance date
Defaults to the Month, Day, 2003
Oct 01, 2003 – Oct 01, 2003
Auto Insurance Reform
Post  Oct 01,2004Prior to  Oct 01,2003
Category One Category Two
October 01, 2003

36. Example One:
Calculating the Date of Relevance
Driver #1:
Date Licensed: June 01, 1995
Date first insured: June 01, 1997 – to Present
When is the clients Date of Relevance?
Answer:
June 01 2004

37. Example Two:
Calculating the Date of Relevance
Driver #1:
Date Licensed: April 01, 1980
Date first insured:
April 01, 1980 - Present
When is the clients Date of
Relevance?
Answer:
Driver One: April 01, 2004
Driver Two: November 01, 2004
Driver #2:
Date Licensed: November 01, 1983
Date first insured:
Added to Driver #1 policy
November 01, 1983
When is the clients Date of
Relevance?

38. Example Three:
Driver #1:
Date Licensed:
December 15,2003
Date first insured:
December 15,2003
When is the clients Date of
Relevance?
Driver #2:
March 16,2015
Date first insured:
March 16,2015
When is the clients Date of
Relevance?
Answer:
Driver One: December 15, 2003
Driver Two: March 16, 2015

40. Take all Comers Rule
Even if the
client
doesn't
qualify for
the regular
market we
MUST
quote them
in regular
book
Sounds like I can
get away with
just about
anything here in
Alberta!

41. Adverse Contractual Rule
The exception to the “Take all comers Rule”
An insurer, insurance agent or insurance broker shall not, directly or indirectly, take any adverse contractual action
with respect to an insured or an applicant for a contract except for one or more of the following reasons:
A. The non-payment of a premium or any portion of a premium;
B. The failure of the insured or the applicant for a contract to inform the insurer or to keep the insurer
informed, where requested to do so by the insurer, as to who is the principal driver of the automobile for
which the insurance coverage is or is to be issued;
C. In the case of an insurer that is a provincial or extra-provincial company, the insurer is required to cease to
undertake or to offer to undertake insurance in Alberta pursuant to section 25(2);
D. The insurer’s license is suspended or cancelled.
E. In the case of an insurer that is a federally authorized company, the Federal Super Institutions has ordered
or otherwise directed the insurer to cease carrying on business or insuring risks in Canada;
F. The insurer has filed notice under section 611(3) that the insurer intends to withdraw from the business of
automobile insurance;
G. Where permitted by regulation, any reasons not referred to in clauses (a) to (f) that are prescribed or
otherwise described by regulation.
These
rules
pertain to
the actions
of the
client.
These
rules
pertain to
the actions
of the
company
Well, Maybe
not
Everything!

42. What does this mean for service
and sales?
• The “Take all comers rule” becomes pertinent when
conducting a remarket.
• This means that –providing the company offers the
coverage required- that they cannot deny the
business.
• Unless (as per the adverse contractual rules).
There is a non-payment issue (refer to Dec rules
for each company)
• Or, the client has misrepresented the risk to the
insurer.
– We should be wary of outstanding premium owed to a company
before remarketing
– Cancellations for Non-payment
– Fraud and Misrepresentation

44. The GRID?

45. Applying Grid Rate?
Grid Premium for Basic Coverage
 Grid applies only to basic coverage premiums (third party
liability & accident benefits)
 About 10% of drivers are rated on Grid
 Less experienced drivers are often capped by Grid
 As drivers gain experience and drive without claims and
convictions, their premiums decrease
 Inexperienced drivers with driver training start at 10% below
entry level (Grid step -2)
 Each year without an at-fault claim, further -5% to maximum
50% reduction to base or grid step 0
 Each at-fault claim moves driver 5 steps up the grid
 Convictions and accident frequency develop surcharges

46. Factors Affecting Grid Rating
• Years Licenced
• At Fault accidents
• Liability Limit
• Territory
– Territory divided into three categories:
• (Calgary, Edmonton, Rest of AB)
• This doesn’t mean that everyone in Calgary is
going to be on grid etc.
• Just means grid premiums will change based on
which territory your in

47. 0
Bad +
Good -
- 2 with driver training
(stay 2 years before accumulating more experience)
Beginner
AF accident you go up the GRID 5+ spaces
- 3 years licenced
- 4 years licenced
+5
AF accidents
-1
Years claims
free
Michelle Dulmage

48. -5

49. Now you try!!

50. Think, Pair, Share:
Alex (40 years of age)
– 24 years – no suspensions
– 1 Vandalism claim – 2 years ago
– No convictions
Jane (38 years of age)
– 22 years licenced
– No suspensions
– 1 Glass Claim – 1 years ago
***2 vehicles on the policy***

51. Think, Pair, Share:
Brett (30 years of age)
– 14 years – no suspensions
– 2 minor convictions
– No accidents
Penelope (27 years of age)
– 11 years licenced
– She has drivers training
– No suspensions
– No accidents or
convictions

52. Think, Pair, Share:
George (45 years of age)
– 29 years – no suspensions
– 2 minor convictions
– No accidents
– No suspensions
Kelly (45 years of age)
– 29 years licenced
– 2 minor convictions
– No accidents
Grace (17 years of age)
– 1 year licenced
– She has driver training
– No accidents
– No convictions

53. Thanks for all of your help.
Myrna understands the coverage
on her Alberta auto policy a lot
better now…
Any questions?