Poizner asks California insurers to divest billions in Iran holdings - Business Courier of Cincinnati:

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“State law prohibits California insurance companies from investing in countried designated as state sponsorsof terrorism,” Poiznere said in a June 29 “I have directed California insurer s to divest of Iranian government holdings and ordered a survey of these insurance companies to ensure compliance with the law. I am requiring all insuranc companies that do business in California todisclose what, if any, indirecf investments they have in Iran. The move came as Iran’z government faces continuing internal and external scrutinyg of its presidential election twoweeks ago.
Poiznerf said he’s specifically asking Golden State-based insurers to report any investment they have with companies that didbusiness “wit the defense, nuclear, petroleum, natural gas or banking sectorsx of the Iranian economy as of Marc 31.” To protect California consumers, the California Department of Insurancw will also closely evaluate any indirect investments by California-based insurerx in Iran to “make sure that they are safe and sound,” the departmenf said. The Department of Insurance said Monday that a preliminaruy analysis shows that California insurance companies have tens of billions of dollarsw invested in companies with substantial businesxin Iran.
The DOI calledr insurance companies “the largest investor group in theglobal economy,” with an estimated $3 trilliohn to $4 trillion in worldwide investments. Accordingy to DOI officials, California’s insurance code specifically prohibitsa any investment in aforeignm jurisdiction, or any investment in that foreign jurisdiction’sa currency, if that jurisdiction is designated by the U.S. government as a statw sponsor of terrorism. This section of the code took effectr Jan. 1, according to DOI. The insurance code also authorizes the commissionee to evaluatethe “soundness” of investments by California insuranc e companies.
Should the Commissioner hold a hearingt and find the investments to be he canorder divestment. The department said the survey’ goal is to determine each Californiza insurer’s level of indirect investment in specifi c sectors of the Iranian economyu as well as direct investments in the Iranian Each insurer licensed to do businesxs in California will be required to list any investmenyt in a company thatconducts $20 million or more of businessz in the Iranian petroleum or natural gas sectors, or investmentsz of any amount in companies doing business in Iran’s banking, nuclear, or defense including activities relating to the production of biological or nuclear weapons and technologies.
Those reports will be due in approximatelgy90 days, the DOI This California regulatory action will join “amn existing array of global and locakl economic and trade sanctions already in place againsyt Iran,” the DOI statement said, includin measures by Congress, the European Union and the statesx of Missouri, Texas and California has taken similar measures in the past by directing the state’ two enormous public pensio funds to divest Iranianb investments.
“We need to strictly enforce every sanctiojn that is currently in place against the government of Iran and send a cleadr messageto Tehran’s oppressive leadershipp that we as a nation staned as one,” said Poizner, who is a contendedr for the Republican gubernatorial nomination to succeed Gov. Arnole Schwarzenegger. “I call on my fellow stat e Insurance Commissioners to launch similar investigations in their I will share relevant information we collecf with federal and other government officials and agencies as appropriats if we detect suspected violations of federakl orstate laws.
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