In addition, Commissioner Jones said insurance companies must pass the savings obtained from the tax deductions to policyholders. They can do it by lowering premiums.
In January, Commissioner Jones instructed the department to launch a regulatory review of insurance rates. The move comes after the new tax reform law cut the corporate tax rate.
Commissioner Jones also modified the Prior-Approval Rate Making Regulations to reflect the change in tax savings from the corporate tax rate cuts.
The California Department of Insurance is the largest consumer protection agency in the state. Since 2011, the department received more than one million calls from consumers. It helped recover over $469 million in claims and premiums. Insurance companies are collecting $289 billion in premiums annually in the state.
