California Insurance Commissioner Dave Jones has mandated insurance companies writing workers' compensation in the state to report their savings from the recent U.S. tax cuts on an annual basis.
The commissioner said the measure will allow the California Department of Insurance to review the insurers' savings and rates as well as provide transparency to the public. Jones said any savings to insurers from the reduction in corporate tax rates to 21% from 35% "should be passed along to California businesses."
The report will be submitted through a rate filing by Dec. 31, 2018, and on a yearly basis up until Dec. 31, 2020. Insurers must provide details about how the savings affect their rates or explain if they do not.