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March 2018 Archives

Insurance companies may try to charge policyholders unfair rates

Following last year’s national tax overhaul, California State is reminding its insurance companies that their rates must reflect the new corporate tax rate. The Tax Cuts and Jobs Act was passed in December of 2017. One of its components was a major reduction of the corporate tax rate. Under the new law, the tax rate for corporations was slashed from 35 percent to 21 percent—a 14 percent difference. This means that insurers are obligated to adjust their prices to accommodate the new tax rate.

Insurance companies often let down wildfire survivors

Although it has been nearly five months since devastating wildfires damaged thousands of California homes, thousands residents are still struggling to get their insurance providers to pay their damages. Many policyholders are realizing an uncomfortable, frustrating truth: That their insurance companies do not want to fulfill their promises.

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