1. How Changes to Auto Insurance Impact Brokers
James L. Vigmond, Partner
Robert M. Durante, Partner
Bill Kirwin, Accident Benefits Specialist
Steven Smyth, Accident Benefits Specialist
(or am I living in the shadow – the sword of Damocles)

2. HOW CHANGES TO AUTO INSURANCE IMPACT BROKERS
What are the changes?
What effect does it have on third party liability limits?
The duty to inform myself of my insured’s needs
The “deep pockets” effect

3. What Are The Changes?
The amount of available benefits are dramatically reduced
Threshold for meeting CAT impairment is dramatically increased
… a toxic combination

4. Available Benefits – Non-CAT
Before
After
Medical/Rehab
$50,000 // 10 years
$65,000 combined // 5 years
with monthly max. of $3,000
Attendant Care
$36,000 // 2 years
Non-Earner Benefit
$185/week* payable
6 months post-accident
(Payable for life if insured suffered a complete inability to carry on normal life)
$185/week payable
4 weeks post-accident
(Payable for 2 years)
*$320/week at 2 year mark if Student Benefits

5. Available Benefits – CAT
Before
After
Medical/Rehab
$1,000,000
(lifetime)
$1,000,000 combined
Attendant Care

6. Enhanced Benefits are Available

7. Changes to Catastrophic Impairment
Most frequent before changes:
Glasgow Coma Scale of 9 or less
55% Whole Person Impairment
A single marked mental/behavioural impairment

8. Post-June 1st, 2016 No Glasgow Coma Scale
Use of 6th edition of guides artificially & dramatically reduces assessment for mental/behavioural disorders
Requires 3+ marked mental/behavioural impairments
Very few people will qualify for Catastrophic Benefits
Requires positive imaging for adult brain injury

9. Interplay of A/B and Tort
Tort gets credit for available benefits
Abundant benefits decreases tort exposure
Scarce benefits increases tort exposure
Plaintiffs will identify targets with deep pockets

10. The Duty to Inform Myself of Insured’s Needs
Arises from obligation to give advice
Existing renewal practice conflicts with duty established in case law
“What did my insurance broker recommend?”
Affects third party liability limits
Affects enhanced limits for accident benefits
The insurance broker will become the next “deep pocket”