California Settles with Insurers on Iran Issue

At the same time, the settlement allows the California Insurance Commissioner to retain the power to independently review and publicize the names of insurers with investments in Iran-related businesses.

Insurance trade groups involved in the settlement include the American Council of Life Insurers, 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.

"The resolution of this litigation is an important step forward for our efforts to make sure that the public, insurers, and investors are aware of companies doing business in the nuclear, military and energy sectors of Iran's economy, particularly in light of the growing nuclear threat posed by Iran," Jones said.

He said the settlement preserves the Department's ability to collect and publish information about insurer investments in companies doing business in Iran, "while addressing issues raised about alleged conflicts with federal and state law."

As a result of the settlement of this litigation, the Commissioner will withdraw the lawsuit against the California Office of Administrative Law (OAL), and the Insurer Trade Associations have agreed to withdraw their legal challenge to the Commissioner's efforts to publicize insurer investments in companies engaged with Iran.

Jones justified the department's aggressive efforts to curb investments in Iran. In a statement, he said that since the Department of Insurance began publicizing information about insurance companies investing in companies doing business in Iran, "significant numbers of insurance companies have ended these investments."

His statement cited a list maintained by the Department of Insurance of 43 businesses engaged in the Iranian nuclear, military or energy sectors of Iran is available to the public.