California’s insurance commissioner announced the end to a pair of civil suits, filed over his agency’s efforts to force insurance companies to stop investing in corporations working in Iran.
Steve Poizner
California Insurance Commissioner Dave Jones announced the settlements, even though it was his predecessor, Steve Poizner, who targeted insurance companies in 2009 for their investments in companies that indirectly benefited Iran’s government. Iran has been labeled a government sponsor of terrorism, according to the U.S. State Department.
Insurance companies fought Poizner, arguing that his efforts to stop investments by insurers in corporations tied to energy, nuclear or defense work in Iran were illegal, amounting to the unauthorized creation of a new regulation. In November 2010, Poizner sued the state’s Office of Administrative Law, which had ruled his policy was an “underground regulation.’
The terms of the settlement permit the insurance commissioner to maintain a public list of businesses involved in “volatile sectors” of the Iranian economy, according to a statement from Jones’ office. As their financial statements already contain this information, insurers will no longer be required to file quarterly reports regarding their Iran-related investment activities nor will such investments be disallowed for purposes of determining financial solvency of the insurers. Under the terms of the settlement, the commissioner retains the power to independently review and publicize the names of insurers with investments in Iran-related businesses.
“The resolution of this litigation is an important step forward for our efforts to make sure that the public, insurers, and investors are aware of companies doing business in the nuclear, military and energy sectors of Iran’s economy, particularly in light of the growing nuclear threat posed by Iran,” Jones said. “The settlement preserves the department’s ability to collect and publish information about insurer investments in companies doing business in Iran, while addressing issues raised about alleged conflicts with federal and state law.”
Among the insurance trade associations that challenged Poizner’s policy were the American Council of Life Insurers, American Insurance Association, the Association of California Insurance Companies, the Association of California Life and Health Insurance Companies and the Personal Insurance Federation of California (insurer trade associations).
As a result of the settlement, the commissioner will withdraw the lawsuit against OAL. The insurer trade associations have agreed to withdraw their legal challenge to the commissioner’s efforts to publicize insurer investments in companies engaged with Iran.
Since the insurance department began publicizing information about insurance companies investing in companies doing business in Iran, significant numbers of insurance companies have ended these investments, Jones’ office said. The commissioner’s list of 43 businesses engaged in the Iranian nuclear, military or energy sectors of Iran is available to the public.
California, insurance companies settle suits over investments in Iran via IFAwebnews.com .
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