Not all policyholders will automatically see reduced rates, however. Whether a policyholder receives a decrease and the amount of the decrease depends on a number of factors, including the insured property's location and other individual risk characteristics and coverage features, Jones said.

Since Jones took office in 2011, the California Department of Insurance has processed nearly 40,000 property and casualty insurance rate filings under Proposition 103, the voter-enacted rate regulation law, the department said.

During this same period, Jones has reduced the overall amount of requested rate increases by $1.093 billion and obtained more than $1.562 billion in rate reductions from insurers, totaling more than $2.655 billion in savings to California consumers and businesses. According to the insurance department, this total includes approximately $975 million in rate reductions for personal auto coverage and $616 million in rate reductions for personal homeowners' coverage.

Rate regulation in California applies to homeowners', auto, and other property and casualty insurance. Under Proposition 103, which was passed by California voters in 1987, insurers must obtain approval from the insurance commissioner before they increase or reduce rates.

The insurance commissioner approves rates that are intended to be sufficient to cover claims costs, reasonable administrative expenses and a reasonable return for the insurance company, officials said. The commissioner has the authority to reject what he determines are "excessive" property and casualty insurance rates.