Financial Services Commission of Ontario Bulletin No. A-09/03
Property & Casualty ) Auto
July 29, 2003
Technical Notes for
Automobile Insurance Underwriting Rules
All insurers that are licensed to write automobile insurance in Ontario are required to make a
filing in respect of their underwriting rules with the Financial Services Commission of Ontario
The Section 238 Underwriting Rules Filing Guidelines set out the information that is required to
be filed and the format for the filing. These Technical Notes identify the relevant legislation and
regulations, and other specific items to take into consideration in developing your underwriting
Underwriting rules are those rules that a company uses to decline all coverages to a risk, or to
deny certain coverages to a risk, or to limit coverage in some way such as offering only higher
deductible levels or lower liability limits. Underwriting rules deal with the coverage that will or
will not be provided.
B. Legislation and Regulations
The requirements to file underwriting rules are outlined in section 238 of the Insurance Act (the
Act), R.S.O. 1990, chap. I.8, as amended.
Under subsection 238(1), an insurer cannot decline to issue, terminate or refuse to
renew a contract or refuse to provide or continue a coverage or endorsement except on
a ground (underwriting rule) filed with the Superintendent.
Subsection 238(2) requires every insurer to file underwriting rules with the
Subsection 238(3) requires that underwriting rules be filed in a form approved by the
Superintendent (i.e., the Section 238 Underwriting Rules Filing Guidelines) together with
other information as may be specified.
An insurer will be prohibited from using an underwriting rule if the Superintendent is of the
opinion that the rule, or the manner in which it is applied:
has little or no