NLR 83/04 - Insurance Premiums Interest Rates Regulations under the Automobile Insurance Act

NEWFOUNDLAND AND LABRADOR REGULATION 83/04 Insurance Premiums Interest Rates Regulations under the Automobile Insurance Act ( July 28, 2004 ) Under the authority of subsection 6.3(2) of the Automobile Insurance Act , the minister makes the following regulations. Dated at St. Johns , July 28, 2004 . Dianne Whalen Minister of Government Services REGULATIONS Analysis 1. Short title 2. Definitions 3. Application of rates Short title 1. These regulations may be cited as Insurance Premiums Interest Rates Regulations . Back to Top Definitions 2. Where an insured pays a premium required under an automobile insurance contact in equal monthly instalments, an insurer shall not charge a rate of interest exceeding (a) 3% of the total premium payable under the contract if the term of the contract is 12 months or more; (b) 1.5% of the total premium payable under the contract if the term of the contract is 6 months or more but less than 12 months; and (c) 0.5% of the total premium payable under the contract if the term of the contract is less than 6 months. Back to Top Application of rates 3. The interest rates set out in section 2 apply to contracts of automobile insurance renewed or entered into after August 1, 2004 . ©Earl G. Tucker, Queen's Printer