Calif. insurance commissioner issues order for workers' comp insurers
Insurers will need to provide details about how savings from the new tax law impact their rates.
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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