California looks to pass on insurer tax savings to consumers
News: 2018 Press Release
SACRAMENTO, Calif. — Yesterday California Insurance Commissioner Dave Jones directed his department to commence a regulatory review of insurers' rates and other lines of business where insurers would benefit from the federal tax cuts. The purpose of that review is to identify specific legal authority and necessary amendments to rate formulas and the procedures for addressing insurers' rates to pass the decrease in taxes on to California policyholders where authorized.
Today Consumer Federation of America issued a letter to Commissioner Jones and other insurance regulators on this very issue asking them to require insurers to file lower rates to reflect the federal tax legislation passed by Congress. In a letter to Insurance Commissioners across the country, Consumer Federation shared examples of the impact of the reduced tax rates on insurers profitability and asked the Commissioners to ensure these significant savings be passed on to insurance consumers.
"Insurers will now realize significant savings from these recent tax reductions," said Commissioner Jones. "Policyholders should also benefit from the reduced taxes paid by insurance companies."
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
