Create Account

Still Have Questions? Contact Us

Matt Brady

Matt Brady
Senior Director
Media and Federal Advocacy Communications

Telephone: 202.580.6742

Lisa Floreancig

Lisa Floreancig
Public Affairs Director
State Affairs

Telephone: 317.876.4246

NAMIC Joins Coalition in Veto Request Letter on AB 2160, Domestic Insurer Investments

A coalition of state and national insurance trade associations, including NAMIC and its state trade advocacy partner the Pacific Association of Domestic Insurance Companies and the California Chamber of Commerce, sent a letter Sept. 4 to Gov. Edmund G. Brown Jr. requesting that he veto AB 2160, legislation that would impose new administrative costs and burdens on California-only domestic insurers and discourage insurers from selecting California as their state of domicile.

As stated in the Legislative Counsel's Digest, AB 2160 "would require that investments by a domestic insurer in companies that are included on the list maintained by the Department of General Services be treated as nonadmitted assets on the financial statements of the domestic insurer. The bill would deem use of the list developed for purposes of the Iran Contracting Act of 2010 as automatic compliance with these requirements. The bill would require the insurer to provide the Department of Insurance, on an annual basis, with a list of the investments the insurer has in companies included on the Department of General Services list."

In the veto request letter, the coalition noted that insurers currently comply with State Department and the Department of Treasury rules that prohibit investments in Iran, and that state legislation pertaining to foreign policy cannot interfere with the federal government's primacy in that area. AB 2160 would interfere with federal law on point.

The coalition also brought to the attention of the governor the fact that AB 2160 is inconsistent with the recent settlement of litigation between the insurance commissioner and several insurance trade associations, and could lead to litigation over the constitutionality of the bill.

Christian J. Rataj
State Affairs Manager