CA| Bulletin 2026-2 from the California Insurance Commissioner reminds all Proposition 103 prior-approval property and casualty insurers that rate applications must use the Department’s official Prior Approval Application, Templates, Standard Exhibits, and SIS Exhibits without altering any of the Department’s proprietary formulas, and that any adjustments must instead be disclosed and explained in the Filing Memorandum and supported by a variance request where applicable. Undisclosed or unauthorized formula changes violate the Prior Approval Instructions, undermine the truthfulness of the required perjury affidavit, and may constitute violations of the California Insurance Code and regulations, exposing insurers to severe administrative penalties, civil liability, and potential prosecution for perjury or related offenses if the changes amount to misrepresentation to the Department.
Risk of Penalties & Perjury: CA Insurance Commissioner Targets Undisclosed Formula Edits in Rate Exhibits
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