B - PACICC

Question 1

PACICC

Goal of PACICC

Answer 1

Non-profit organization

To protect policyholders from financial loss if insurer becomes insolvent

All included companies must participate to PACICC (participating insurers)

Question 2

PACICC

Who is excluded from PACICC

Answer 2

• MPIC, Saskatchewan, SAAQ BI Claims
• Accident and sickness alone or with life insurance
• Life insurance, aircraft, credit, crop, director, officers, employers liability, e and o’s, fidelity, financial guarantee, marine, mortgage, surety, title
• Accident and sickness with general insurance is included
• other government mandated insurers are included

Question 3

PACICC

2 conditions for PACICC obligations to start

Answer 3

Insurer must write a line of business that is covered under PACICC

starts upon a formal WINDING UP ORDER

Question 4

PACICC

Describe the payment under PACICC

Answer 4

It refunds (Auto up to 250K) (Property up to 300K) for a single-named insured, from a single occurrence
-Loss from a single occurrence are aggregated
=Min( 250K or 300K ; GUL subject to deductible and limit)
It refunds for premium paid in advance to a maximum of 700$
=min(70% Unearned Premium *; 700)

Question 5

PACICC

Determine the PACICC assessment of a given participating insurer

Answer 5

Assessment of an insurer = 
Minimum 
(
1.5% x WP of insurer 
; 
Total Assessment in jurisdiction
x  WP of insurer 
/   WP of all participating insurers
)