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. Existing law, the Iran Contracting Act of 2010, provides that a person whose name appears on a list developed or contracted for development by the Department of General Services as a person determined by the department to be engaged in investment activities in Iran is ineligible to bid on, submit a proposal for, enter into, or renew a contract with a public entity. This bill would require that above-referenced 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.