The Negative Binomial Applied to the Canadian Merit Rating Plan [Discussion]

Mr. Hewitt's interesting paper carries on the discussion of automobile rating plans which consider the accident, conviction, claim and/or fault, experience of the auto and its drivers. There is a lack of general agreement whether such plans properly should be classified as individual risk rating plans or as extensions of the classification system. The Canadian plan, to which Mr. Hewitt refers specifically, is designated as a "Merit rating plan"; the European plans are referred to as "no loss bonus" plans; and the bureau plan in the United States bears the hopeful appellation "Safe Driver Insurance Plan". By whatever name called and however categorized, such plans have been the subject of much current discussion and many papers.