Application

1  This special direction is issued by the Lieutenant Governor in Council to the British Columbia Utilities Commission (the "commission") under the authority of section 47 of the Insurance Corporation Act (the "Act") with respect to the exercise of the commission's powers and functions as they apply to the corporation.

 Direction relating to the corporation

2  (1)  The following financial outcome targets are established for the corporation:

(a) the net income target for the corporation generally for 2004 is $36 million;

(b) the net income target for the corporation's optional automobile insurance business for 2004 is $0.

(2)  With respect to the exercise of its powers and functions under the Act in relation to the corporation, the commission must

(a) fix rates for universal compulsory automobile insurance that the commission believes are consistent with the corporation achieving the net income targets established for 2004 under subsection (1), after taking into account

(i)  the costs that are to be incurred by the corporation in that year for road safety programs under section 7 (i) of the Act, including, without limitation, payments by the corporation to any level of government with respect to road safety,

(ii)  the costs that are to be incurred by the corporation in that year for vehicle licensing, driver licensing and other services and activities of the corporation under section 7 (g) and (h) of the Act that are to be undertaken in that year in accordance with the agreement, as amended from time to time, entitled "Service Agreement between The Ministry of Public Safety and Solicitor General and the Insurance Corporation of British Columbia" and dated as of September 1, 2003,

(iii)  the payments that the corporation is to make in that year under the agreement entitled "Memorandum of Understanding between B.C. Provincial Government and ICBC" and executed in February, 2003, and

(iv)  the commissions that the corporation is to pay in that year to persons appointed as agents by the corporation under section 16 of the Insurance (Motor Vehicle) Act for collecting government fees and other revenue on behalf of the corporation, and

(b) subject to subsection (4) of this section, ensure that universal compulsory automobile insurance rates are not based on age, gender or marital status.

(3)  With respect to the exercise of its powers and functions under the Act in relation to the corporation, the commission must not fix rates applicable to optional automobile insurance.

(4)  The commission may approve universal compulsory automobile insurance rates that provide discounts to or are otherwise preferential for

(a) persons who are at least 65 years of age, or

(b) persons with disabilities.

(5)  In regulating and fixing rates for the corporation, the commission must treat any premiums levied under section 34 (1.1) (e) of the Insurance (Motor Vehicle) Act as revenue for the corporation's universal compulsory automobile insurance business.