Which rates are used to calculate the premium for an automobile policy issued by the Facility Association?

The correct answer is based on how the Facility Association, which is an organization designed to provide automobile insurance to those who may not be able to obtain coverage through standard market insurers, calculates its premiums. The rates are specifically derived from the association rate manual, which includes rates that have been carefully compiled and approved for use in various jurisdictions.

This systematic approach ensures that the rates reflect the conditions and risks associated with insuring drivers who are often considered higher risk. Using the rates shown in the association rate manual provides a consistent basis for premium determination across different policies issued by the Facility Association, which is crucial in maintaining fairness and transparency in the underwriting process for those insured through this organization.

Other options may involve rates that are not as structured or could lead to inconsistencies. For example, rates determined by the insured could lead to subjective assessments that do not accurately reflect risk levels, while standard market rates from private insurers cater to a different clientele and pricing strategy typically aimed at lower-risk drivers. Rates determined by provincial regulations might represent mandated minimums or frameworks but do not directly relate to the specific calculations required by the Facility Association's manual.