2.1 (1) This section establishes an industry-wide target for the reduction of rates that insurers are permitted to charge for the Personal Vehicles — Private Passenger Automobile category of automobile insurance. 2013, c. 2, Sched. 1, s. 3. Target (2) The target is a 15 per cent reduction in the average of the authorized rates that may be charged by all insurers.  The average is to be determined in accordance with the regulations, and the reduction must be achieved during the period prescribed by regulation. 2013, c. 2, Sched. 1, s. 3. Periodic reductions (3) The regulations may provide for periodic reductions toward the target and may specify the period within which each such reduction must be achieved. 2013, c. 2, Sched. 1, s. 3. Applications by insurers (4) When making an application under section 3 or 7 or making written submissions under section 7.1, every insurer is required to propose a risk classification system and rates that contribute adequately to the achievement of the target. 2013, c. 2, Sched. 1, s. 3. Contribution to achieving the target (5) When making a decision under section 3, 7 or 7.1, the Chief Executive Officer shall consider such factors as may be prescribed by regulation and such other factors as the Chief Executive Officer considers reasonable in determining whether an insurer’s risk classification system and rates contribute adequately to the achievement of the target. 2013, c. 2, Sched. 1, s. 3; 2018, c. 17, Sched. 4, s. 1. Presumption, consistency with rate reduction target (6) For the purposes of clauses 3 (5) (a), 7 (7) (a) and 7.1 (1) (a), an insurer’s current or proposed risk classification system and rates are presumed not to be just and reasonable if, in the Chief Executive Officer’s opinion, they do not contribute adequately to the achievement of the target. 2013, c. 2, Sched. 1, s. 3; 2018, c. 17, Sched. 4, s. 1, 2. Presumption, safe driving history (7) For the purposes of clauses 3 (5) (a), 7 (7) (a) and 7.1 (1) (a), an insurer’s current or proposed risk classification system is presumed not to be just and reasonable unless it includes one or more elements that, in the Chief Executive Officer’s opinion, appropriately take into account the safe driving history of the persons who would be insured under a contract. 2013, c. 2, Sched. 1, s. 3; 2018, c. 17, Sched. 4, s. 1, 2. Regulations (8) The Lieutenant Governor in Council may make the regulations referred to in this section. 2013, c. 2, Sched. 1, s. 3. Referral of regulations to Standing Committee (9) Each of the following regulations stands permanently referred to the Standing Committee on General Government (established under the Standing Orders of the Assembly) when the regulation is filed with the Registrar of Regulations under section 18 of the Legislation Act, 2006: 1. Every regulation referred to in subsection (2) concerning the average of the authorized rates that may be charged by all insurers and concerning the period within which the 15 per cent reduction in the average of the authorized rates must be achieved. 2. Every regulation referred to in subsection (3) concerning periodic reductions toward the target and the period within which each such reduction must be achieved. 2013, c. 2, Sched. 1, s. 3. Terms of reference (10) The Standing Committee may examine the regulations with particular reference to whether they are reasonable in the circumstances and with respect to such other matters as the Standing Committee considers appropriate. 2013, c. 2, Sched. 1, s. 3. Authority to call persons (11) The Standing Committee may examine any member of the Executive Council or any public servant designated by the member respecting the regulations. 2013, c. 2, Sched. 1, s. 3. Report (12) The Standing Committee shall report its observations, opinions and recommendations about the regulations to the Assembly from time to time. 2013, c. 2, Sched. 1, s. 3. Section Amendments with date in force (d/m/y) 2013, c. 2, Sched. 1, s. 3 - 16/08/2013 2018, c. 17, Sched. 4, s. 1, 2 - 08/06/2019