Wednesday, 10 February 2010

Calif. seeks full divestment of insurers from Iran

(AP) – SACRAMENTO, Calif. — California's insurance regulator plans to take steps Wednesday to pressure insurance companies into ending any financial relationship they have with Iran.

A state law that took effect last year outlaws direct investments in Iran by California-based companies. An insurance department review released in December found no such investments by any insurance company doing business in California.

However, the insurance department is taking a further step by requiring companies to disclose even indirect investments in Iran. The U.S. lists the country as a state sponsor of terrorism.

Starting April 1 in California, companies will no longer be permitted to count those indirect investments toward the surpluses and reserves they must maintain to be considered financially sound.

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