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Acts and Regulations

2004-140 - Recently Licensed Driver Rate Reduction

Table of contents

Regulation number	Title
I-12	Insurance Act

Full text

NEW BRUNSWICK

REGULATION 2004-140

under the

Insurance Act

(O.C. 2004-531)

Filed December 23, 2004

Under section 267.9 of the Insurance Act, the Lieutenant-Governor in Council makes the following Regulation:

Citation

1This Regulation may be cited as the Recently Licensed Driver Rate Reduction Regulation - Insurance Act.

Definitions

2The following definitions apply in this Regulation.

“extrajudicial measures” means measures other than judicial proceedings under any Act of Parliament or the Legislature used to deal with a person who is alleged to have committed an offence, and includes extrajudicial sanctions and alternative measures. (mesures extrajudiciaires)

“good driving record” means the driving record of a driver who is not disqualified by the provisions of section 6 from receiving the credits described in section 4. (bon dossier de conduite automobile)

“licensed driver training course” means a driver training course that is licensed by the Registrar of Motor Vehicles and is established and operated in accordance with the regulations under the Motor Vehicle Act. (cours de formation de conducteur licencié)

“recently licensed driver” means a person who(conducteur récemmement titulaire d’un permis)

(a) holds a valid stage two learner’s licence or driver’s licence, class 5, 4, 3, 2 or 1, issued under the Motor Vehicle Act, and

(b) has been so licensed for an aggregate period of less than 6 years, including any periods licensed at an equivalent level elsewhere in North America for the operation of a private passenger vehicle.

Application

3(1)This Regulation applies to automobile insurance rates for a recently licensed driver with a good driving record where the recently licensed driver owns a private passenger automobile or is listed on a motor vehicle liability policy as a driver of a private passenger automobile.

3(2)An insurer shall reduce its approved rates in accordance with the credits required to be applied under this Regulation.

Recently licensed driver credits

4(1)An insurer, when determining the rates to be paid, shall credit driving experience without accidents or convictions in accordance with subsection (2) to a recently licensed driver with a good driving record.

4(2)The credits, when combined with the actual driving experience of the driver, shall be an amount that totals

(a) 6 years, if the driver

(i) has passed a licensed driver training course, or

(ii) has passed a driver training course elsewhere in North America that is substantially similar to a licensed driver training course, and

(b) 3 years in all other cases.

Period of credit

5(1)An insurer shall continue the credits described in paragraph 4(2)(a) until a recently licensed driver with a good driving record has begun his or her seventh year of driving experience or until he or she is disqualified as set out in section 6, whichever occurs first.

5(2)An insurer shall maintain the credits described in paragraph 4(2)(b) until a recently licensed driver with a good driving record has begun his or her fourth year of driving experience or until he or she is disqualified as set out in section 6, whichever occurs first.

Disqualification

6(1)A recently licensed driver is disqualified from the credits described in section 4 if, on or after January 1, 1999:

(a) he or she is a driver at fault for an accident arising out of the use or operation of a motor vehicle, in accordance with the laws of the jurisdiction where the accident occurred;

(b) subject to subsection (2), his or her driver’s licence has been suspended as a result of the non-payment of a fine, a finding of guilt or a conviction for an offence relating to the use or operation of a motor vehicle;

(c) he or she is the owner of a motor vehicle and the insurer has paid a claim arising out of the ownership of the vehicle, when the vehicle was operated by someone other than the owner;

(d) he or she has been convicted of an offence

(i) involving the use of a motor vehicle in motion under any of the sections of the Motor Vehicle Act set out in Schedule A,

(ii) under the Criminal Code (Canada) while operating a motor vehicle, or

(iii) under the laws of another jurisdiction in North America that is substantially similar to an offence described in subparagraph (i) or (ii), or

(e) he or she has benefitted from a program of extrajudicial measures in relation to an alleged offence while operating a motor vehicle.

6(2)A recently licensed driver is not disqualified from the credits described in section 4 by the suspension of his or her driver’s licence solely as a result of offences arising from the unlawful parking of a motor vehicle.

Commencement

7This Regulation comes into force on January 1, 2005.

SCHEDULE A

Provisions of the Motor Vehicle Act

91(1.02)

105.1(1)