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AB-1694 Insurance: investment disclosures.(2021-2022)

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Date Published: 03/08/2022 09:00 PM
AB1694:v98#DOCUMENT

Amended  IN  Assembly  March 08, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1694

Introduced by Assembly Member Levine

January 25, 2022

An act to add Section 1183 to the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 1694, as amended, Levine. Insurance: investment disclosures.
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, which regulates insurers and insurance practices. Existing law authorizes domestic incorporated insurers to invest their assets in specified securities or loans upon those securities. Existing law requires admitted insurers with annual premiums written in California equal to or in excess of $100,000 to provide information to the commissioner on their community development investments, community development infrastructure investments, and green investments in California.
This bill would require an admitted insurer, on or before January 1, 2024, and on or before each January 1 thereafter, to disclose its investments in fossil fuel-related entities and the fossil fuel-related fuel companies and projects it underwrites or otherwise insures. The bill would require the department to publish that information on its internet website on or before April 1, 2024, and on or before each April 1 thereafter. The bill would authorize the commissioner to take regulatory action to prohibit or restrict fossil fuel-related investments and underwriting.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1183 is added to the Insurance Code, to read:

1183.
 (a) On or before January 1, 2024, and on or before each January 1 thereafter, an admitted insurer shall disclose both of the following to the department in a form and manner determined by the department:
(1) All of the insurer’s investments in fossil fuel-related entities.
(2) All of the fossil fuel-related fuel companies and fossil fuel projects that the insurer underwrites or otherwise insures.
(b) On or before April 1, 2024, and on or before each April 1 thereafter, the department shall publish the information submitted pursuant to subdivision (a) on its internet website.

(c)The commissioner may take regulatory action to prohibit or restrict insurers from investing in fossil fuel-related entities or underwriting or otherwise insuring fossil fuel-related companies and projects.

(c) For purposes of this section:
(1) “Fossil fuel company” means a company that derives 15 percent or more of its revenue from exploration, extraction, processing, exporting, transporting, or any other significant action with respect to oil, natural gas, or coal, or any byproduct thereof.
(2) “Fossil fuel project” means a project intended to do either of the following:
(A) Facilitate or expand exploration, extraction, processing, exporting, transporting, or any other significant action with respect to oil, natural gas, or coal, or any byproduct thereof.
(B) Construct infrastructure related to the activities described in subparagraph (A), including wells, pipelines, terminals, or refineries.
(3) “Investments in fossil fuel-related entities” means investments in either of the following:
(A) A fossil fuel company.
(B) A fossil fuel project.