The California Department of Insurance should go through proper rulemaking procedures if it wants to regulate Iran-linked investments, a Golden State administrative law official says.
Susan Lapsley, director of the California Office of Administrative Law (OAL), makes that argument in a response to news that California Insurance Commissioner Steve Poizner is suing in a state court in Los Angeles to overturn a recent OAL decision.
Poizner has been trying to keep insurers that do business in California from investing in companies that have dealings with Iran. He recently decided to stop giving insurers credit for investments. Iran-linked
Insurance trade groups asked the OAL to overturn Poizner’s Iran-linked investment policy, arguing that Poizner had failed to put the policy through the comment period required by the California Administrative Procedure Act (APA).
The OAL sided with the insurance groups and found that the Poizner Iran-linked investment requirements were illegal “underground regulations.”