Congress revised the Federal Tax Cuts and Jobs Act in December 2017, reducing tax rates and modifying tax policies, credits, and deductions for individuals and businesses. One of the revisions lowered the corporate tax rate from 35 percent to 21 percent.
TDI continues to receive rate filings using the prior corporate tax rate for insurance rates effective in 2018. TDI expects insurers to use the new, revised tax rate and update the tax assumptions in their ratemaking methodologies, in keeping with actuarial standards. Insurers subject to filing requirements must update relevant calculations and exhibits demonstrating use of the updated tax provisions in their rate filings.
For questions regarding this bulletin, email PCActuarial@tdi.texas.gov.