We’ve seen a lot of media coverage of the brutal suppression of pro-democracy protests in Iran over the last several weeks. Although a lot of our leaders have condemned Tehran for the way in which the Iranian government has handled the protests, few of them have actually bothered to step up and do something about it. That’s why I applaud California Insurance Commissioner and 2010 Republican gubernatorial candidate Steve Poizner for his bold and forward-thinking action yesterday to limit the amount of money invested by insurers in Iran, which is also one of the world’s most prominent state sponsors of terrorism. It’s about time that we had leadership in Sacramento that does more than just make empty promises.
Yesterday, Commissioner Poizner used the authority vested in him to enforce an existing state law that prohibits California-based insurance companies from investing in corporations that fund the Iranian regime. That means that he will order California insurers to divest of Iranian government holdings and, moreover, he will order a survey of these insurers to ensure that they are complying with the law.
Commissioner Poizner’s recent order also touches any insurer who does business in California, not just insurers based in the Golden State–it requires these insurers to disclose what, if any, indirect investments they may have in Iran.
A preliminary analysis conducted by the California Department of Insurance suggests that insurance companies that do business in California have tens of billions of dollars of investments in companies with substantial business interests in Iran.
The action taken by Commissioner Poizner yesterday is consistent with an existing array of economic and trade sanctions already placed on the government of Iran by Congress, the United Nations Security Council, the European Union, individual nations and others.
Commissioner Poizner’s action demonstrates his commitment not only to ensuring that these insurers are following the law, but also that consumers like you and me are being protected as well. Why is this? Because insurance companies invest the premium dollars they receive from consumers until they’re needed to pay claims.
So, for example, a life insurer collects premiums for decades until a policy needs to be paid out. More of our leaders around the country should be taking action, as Commissioner Poizner did, to ensure that our hard-earned money is not going to back a repressive regime like the one in Tehran. He’s asked state insurance commissioners across the country to join him and order similar reviews of insurance companies based in their states. I, for one, hope that other public servants follow Steve Poizner’s lead.
You can read more about Commissioner Poizner’s very specific plan
It isn‚t every day that we see this type of bold leadership coming from our leaders in state government. We’re used to a lot of cheap talk and empty promises from our elected leaders in Sacramento. That’s why Steve Poizner should be commended for using the resources at his disposal to actually make a difference. He’s managed, through his recent action, to ensure that our state’s laws are enforced, consumers are protected, and to send a stern message to the repressive regime. Isn’t it refreshing to see an elected official do their job. I should note that I am a consultant for his election as Governor. It is because of actions like this that I am pleased to have decided to help elect him as our next Governor.