The California Department of Insurance has recently adopted regulations governing how and when insurers may elect to use the "cash" or "accrual" basis of reporting for purposes of completing their annual insurance gross premium returns.
Until recently, the CDI had a set administrative procedure in place requiring insurers to report their gross premiums utilizing the "accrual" basis.
"In the Matter of the Petitions for Redetermination Under the Tax on Insurers Law of California Automobile Insurance Company," Dec. 12, 2006, the State Board of Equalization ruled that gross premiums were required to be reported utilizing the "cash" basis of reporting. Consequently, the CDI has adopted new regulations clarifying how gross premiums should be reported by insurers in the future. The CDI has also provided insurers with a summary statement explaining the regulation and the legal/regulatory history behind the regulation.
Christian J. Rataj
State Affairs Manager
Posted: Wednesday, September 19, 2012 2:29:44 PM.
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