California’s insurance commissioner Steve Poizner has left no
doubt about his dislike of Iran’s political regime, backing it with
an order to insurers licensed in California to sell shareholdings
in 50 international companies he has identified as “propping up
Iran’s energy, nuclear, and defence sectors” (see LII 245).
However, not all insurers share Poizner’s
enthusiasm for the wholesale disposal of Iran-related
shareholdings.
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Taking a first step to oppose the commissioner,
five national and state trade associations representing
California’s life, health and property and casualty insurance
industry have filed a petition with the California Office of
Administrative Law opposing what they claim is a move by Poizner
that exceeds his legal authority.
The groups are the American Council of Life
Insurers, the 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.
In their petition the groups stressed: “With no
legal authority, the commissioner would establish a perilous
precedent by regulating investments in this fashion.
“Future insurance commissioners could take
similar action to restrict investments in companies that engage in
any number of practices that a commissioner disagrees with or finds
politically offensive. The potential list is limited only by the
imagination.”
Adding further to their frustration, the trade
groups noted that there are companies on Poizner’s sale-list that
no longer do business in Iran.
Signaling that they will not to back down on
their opposition to Poizner, the trade groups concluded: “Insurance
companies will consider their options and take appropriate steps
within the boundaries of California law.”
