BILL NUMBER: AB 2160	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Blumenfield and Feuer

                        FEBRUARY 23, 2012

   An act to add Section 1241.2 to the Insurance Code, relating to
insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2160, as introduced, Blumenfield. Insurance: retention risk.
   Existing law prohibits domestic insurers from acquiring foreign
investments from or located in foreign jurisdictions designated as
state sponsors of terrorism by the United States Secretary of State.
   This bill would prohibit any indirect investment, defined as an
investment in a person that extends credit or provides goods or
services in the amount of $20,000,000 or more to the energy sector of
Iran, or extends credit or provides goods or services of any amount
to the military sector of Iran, of a domestic insurer from being
treated as an admitted asset on the financial statements the domestic
insurer files with the Insurance Commissioner.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1241.2 is added to the Insurance Code, to read:

   1241.2.  (a) The Legislature finds and declares the following:
   (1) Direct investments in Iran and investments in companies doing
business with the Iranian energy sector are subject to financial risk
as a result of Iran's pursuit of nuclear weapons, sponsorship of
international terrorism, and consequent international isolation.
   (2) This section furthers the commissioner's authority to ensure
that investments by insurers doing business in California are
financially sound and not subject to risk based on ties to Iran.
   (b) In addition to the requirements of Section 1241.1, any
indirect investment of a domestic insurer shall be treated as a
nonadmitted asset on the financial statements of the domestic insurer
filed with the commissioner.
   (c) For purposes of this section "indirect investment" shall mean
an investment in a person that extends credit or provides goods or
services in the amount of twenty million dollars ($20,000,000) or
more to the energy sector of Iran, or extends credit or provides
goods or services of any amount to the military sector of Iran.
   (d) For purposes of this section "energy sector" shall have the
same meaning as set forth in subdivision (b) of Section 2202 of the
Public Contract Code.
   (e) For purposes of this section "military sector" shall refer to
activities to supply, maintain, or enhance any aspect of the Iranian
military, including, but not limited to, the research and development
of nuclear weapons.