Wednesday, 10 February 2010
Calif. seeks full divestment of insurers from 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.