Bill > AB2160

This bill adds Section 1241.2 to the Insurance Code, requiring domestic insurers to treat investments in companies with business operations in Iran, as defined by the bill, as "nonadmitted assets," meaning they are not counted towards the insurer's financial strength. The bill defines "business operations" broadly to include various commercial activities in Iran, and "company" to encompass entities, including those owned or controlled by the Iranian government. Insurers must annually identify and report these investments to the Department of General Services, which maintains a list of sanctioned companies. This requirement will cease to be operative if Iran is removed from the U.S. Department of State's list of terrorism-sponsoring countries and the President certifies that Iran has ceased its nuclear weapons development efforts. The bill aims to address concerns that investments in companies with ties to Iran, which is identified as a sponsor of terrorism and human rights violator, could negatively impact the financial value of insurance companies and, consequently, their policyholders.