How to Rate a School Bus Note If there are any discrepancies between the instructions provided below and the rules in the Public Section of the manual, the rules take precedence. 1. Determine rating territory - refer to Rule 306 The rating territory is the territory where the vehicle will be used. If the vehicle is being operated to or through other territories then rates from the highest rated territory must be used. 2. Determine driving record refer to Rule 309 This is based on the accident history of the vehicle (not the driver) and the number of years the Insured has owned the vehicle or one of a similar type. If the vehicle is newly acquired the driving record will be 0 unless it is replacing a vehicle of similar type that the Insured already owns. 3. Determine the limits of liability required refer to Rule 301 and 305 There are 3 components to the liability coverage and The Road Hazard Limit appears on the policy declaration page. The Road Hazard premium is made up of the Road Hazard Bodily Injury premium and the Road Hazard Property Damage The Passenger Hazard Bodily Injury coverage applies to passengers of the vehicle and the limit will appear on the 6b endorsement. The Passenger Hazard Property Damage coverage applied to property belonging to the passengers and the limit will appear on the 6b endorsement. There are minimum liability limits required for public buses including school buses licensed under the Public Vehicle Act as follows. Vehicles not licensed under the Public Vehicle Act that are being rated as public vehicles are not subject to the minimum limits. Road Hazard Bodily Injury and Property Damage $1,000,000 Passenger Hazard Bodily Injury Limit Seating Capacity o $1,000,000 up to 7 passengers o $5,000,000 8 to 12 passengers o $8,000,000 13 or more passengers Passenger Hazard Property Damage $5,000 Ask if the insured requires a filing/certificate of insurance for the Ontario Highway Transport Board. If so your Servicing Carrier must be advised so they can issue the filing/certificate. Refer to Rule 324. 4. Determine the seating capacity refer to Rule 305 Premium calculations for certain coverages are based on the vehicle s seating capacity. The seating capacity is the number of passengers that can be carried excluding the driver. 5. For optional physical damage coverage, determine the deductible required and whether private passenger or commercial rates are to be used to determine If the vehicle is found in the CLEAR rate group table, use private passenger rates to determine the physical damage premiums. For Collision, use rate Class 07 and the same driving record that you have established for the road hazard and passenger hazard premiums. 1
If the vehicle is not found in the CLEAR rate group table, establish list price new and determine the rate group using Table II in the Commercial Section. The rates for physical damage coverage will then be established using commercial rates. 6. Apply any accident or conviction surcharge refer to Rule 323 Accident and conviction surcharges are applied to the premiums calculated for Road Hazard Bodily Injury, Road Hazard Property Damage, Passenger Hazard Bodily Injury, Passenger Hazard Property Damage, Accident Benefits, Uninsured Automobile, DCPD and Collision. 7. Is the bus used for charter trips? refer to Rule 307:B If the bus is used for charter trips outside of its use as a school bus a surcharge is applied to all coverages based on the anticipated number of trips per year as follows: 1 to 12 trips = 25% 13 to 20 trips = 50% If the vehicle is used to make more than 20 charter trips per year it must be rated as a Public Bus. Road Hazard Bodily Injury (RHBI) Rating Example The premium is per vehicle. _ If limits above $1,000,000 are required, obtain the increased limit factor from Table A under Rates in the Public Section on the Rating Notes page. The increased limit factor is applied to the premium for $1,000,000. Multiply the premium by the increased limit factor if applicable and round Multiply the premium by any applicable accident and conviction surcharge and round the Total RHBI Road Hazard Property Damage (RHPD) If limits above $1,000,000 are required use the same factor for increased limits as used for Road Hazard Bodily Injury. The increased limit factor is applied to the premium for $1,000,000. Multiply the premium by the increased limit factor if applicable and round Multiply the premium by any applicable accident and conviction surcharge and round the Total RHPD 2
Passenger Hazard Bodily Injury (PHBI) Multiply the premium by any applicable accident and conviction surcharge and round the Total PHBI Passenger Hazard Property Damage (PHPD) The premium is per vehicle and the limit is $5,000. If limits above $5,000 are required, go to the Rating Notes page at the beginning of the rates in the Public section and obtain the increased limit factor from Table C. Multiply the premium by the increased limit factor if applicable and Multiply the premium by any applicable accident and conviction surcharge and Total PHPD Accident Benefits (AB) There is a basic charge and a per seat rate. Select the per seat premium that corresponds to the driving record. Multiply the premium by the number of seats. Select the basic charge that corresponds to the same driving record. Add the premium calculated for the number of seats to the basic charge. + Multiply the premium by any applicable accident and conviction surcharge and round Total AB Uninsured Automobile (UA) There is a basic charge and a per seat rate. Select the per seat premium that corresponds to the driving record. Multiply the premium by the number of seats. Select the basic charge that corresponds to the same driving record. Add the premium calculated for the number of seats to the basic charge. + Multiply the premium by any applicable accident and conviction surcharge and round Total UA 3
DCPD The premium is per vehicle. Select the premium that corresponds to the driving record and deductible in Multiply the premium by any applicable accident and conviction surcharge and Total DCPD Premiums Collision (Coll) Private Passenger Type Establish the CLEAR rate group. Using Class 07 and the same driving record used for Road Hazard and Passenger Hazard and the private passenger territory establish the private passenger Collision Multiply the premium by the deductible factor found on the private passenger rate Multiply the premium by.50 Multiply the resulting premium by any applicable accident and conviction surcharge and Commercial Type Establish the rate group using Table II. Using the same driving record used for Road Hazard and Passenger Hazard and the commercial territory establish the commercial Collision Multiply the premium by the deductible factor found on the commercial rate Multiply the premium by.50 Multiply the resulting premium by any applicable accident and conviction surcharge and Total Coll 4
Comprehensive/Specified Perils (CP/SP) Private Passenger Type Establish the CLEAR rate group. Using the private passenger territory, establish the private passenger Comprehensive/Specified Perils Multiply the premium by the deductible factor found on the private passenger rate Multiply the premium by.75 and Commercial Type Establish the rate group using Table II. Using the commercial territory establish the commercial Comprehensive/Specified Perils Premium. Multiply the premium by the deductible factor found on the commercial rate page to reduce or increase the deductible as required. _ Multiply the premium by.75 and Total CP/SP 5