"This order will allow my department to examine workers' compensation insurers' savings and rates and provide transparency to the public," Commissioner Jones said in a statement. (Photo: Shutterstock)
Insurance Commissioner Dave Jones has issued an order that every insurer licensed to write workers' compensation insurance in California must report their federal income tax savings annually through a rate filing in light of the new tax law.
Save the date
Jones' order will require each insurer to submit a rate filing to report the dollar amount of their tax savings by Dec. 31, 2018, and on a yearly basis through Dec. 31, 2020. Insurers will need to provide details about how those savings impact their rates.
Additionally, the insurer must also provide a detailed explanation of any determination that there is no rate impact, stating why the reduction in the federal corporate tax rate, which was reduced to 21% from 35%, does not affect the company's rates.
Investing in California's businesses
"Any savings to insurers should be passed along to California businesses," Commissioner Jones said in a statement. "This order will allow my department to examine workers' compensation insurers' savings and rates and provide transparency to the public."
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