SECTIONS 926.1-926.3 - California Statutes

INSURANCE CODE

SECTION 926.1-926.3

926.1. As used in this article, the following terms shall have the
following meanings:
(a) "Area median income" (AMI) means either of the following:
(1) The median family income for the Metropolitan Statistical Area
(MSA), if a person or geography is located in an MSA, or for the
metropolitan division, if a person or geography is located in an MSA
that has been subdivided into metropolitan divisions.
(2) The statewide nonmetropolitan median family income, if a
person or geography is located outside an MSA.
(b) "Community development investment" means an investment where
all or a portion of the investment has as its primary purpose
community development for, or that directly benefits, California low-
or moderate-income individuals, families, or communities. "Community
development investment" includes, but is not limited to, investments
in California in the following:
(1) Affordable housing, including multifamily rental and ownership
housing, for low- or moderate-income individuals or families.
(2) Community facilities or community services providers
(including providers of education, health, or social services)
directly benefiting low- or moderate-income individuals, families, or
communities.
(3) Economic development that demonstrates benefits, including,
but not limited to, job creation, retention, or improvement, or
provision of needed capital, to low- or moderate-income, individuals,
families, or communities, including urban or rural communities, or
businesses or nonprofit community service organizations that serve
these communities.
(4) Activities that revitalize or stabilize low- or
moderate-income communities.
(5) Investments in or through California Organized Investment
Network (COIN)-certified community development financial institutions
(CDFIs) and investments made pursuant to the requirements of
federal, state, or local community development investment programs or
community development investment tax incentive programs, including
green investments, if these investments directly benefit low- or
moderate-income individuals, families, and communities and are
consistent with this article.
(6) Community development infrastructure investments.
(7) Investments in a commercial property or properties located in
low- or moderate-income geographical areas and are consistent with
this article.
(c) "Community development infrastructure" means California public
debt (including all debt issued by the State of California or a
California state or local government agency) where all or a portion
of the debt has as its primary purpose community development for, or
that directly benefits, low- or moderate-income communities and is
consistent with subdivision (b).
(d) "Geography" means a census tract delineated by the United
States Bureau of the Census in the most recent decennial census.
(e) "Green investments" means investments that emphasize renewable
energy projects, economic development, and affordable housing
focused on infill sites so as to reduce the degree of automobile
dependency and promote the use and reuse of existing urbanized lands
supplied with infrastructure for the purpose of accommodating new
growth and jobs. "Green investments" also means investments that can
help communities grow through new capital investment in the
maintenance and rehabilitation of existing infrastructure so that the
reuse and reinvention of city centers and existing transportation
corridors and community space, including projects offering energy
efficiency improvements and renewable energy generation, including,
but not limited to, solar and wind power, mixed-use development,
affordable housing opportunities, multimodal transportation systems,
and transit-oriented development, can advance economic development,
jobs, and housing.
(f) "Insurer" means an admitted insurer as defined in Section 24,
including the State Compensation Insurance Fund, or a domestic
fraternal benefit society as defined in Section 10990.
(g) "Investment" means a lawful equity or debt investment, or
loan, or deposit obligation, or other investment or investment
transaction allowed by the Insurance Code.
(h) "Low-income" means an individual income that is less than 50
percent of the AMI, or a median family income that is less than 50
percent of the AMI in the case of a geographical area.
(i) "MSA" means a metropolitan statistical area as defined by the
Director of the Office of Management and Budget.
(j) "Moderate-income" means an individual income that is at least
50 percent but less than 80 percent of the AMI, or a median family
income that is at least 50 percent but less than 80 percent of the
AMI in the case of a geographical area.
(k) "Nonmetropolitan area" means any area that is not located in
an MSA.

926.2. (a) (1) Each insurer admitted in California shall provide
information, by January 1, 2014, to the commissioner on all of its
community development investments and community development
infrastructure investments in California. This information shall be
provided as part of the required filing pursuant to Section 900 or
Section 11131, or through a data call, or by other means as
determined by the commissioner. COIN shall provide insurers with
information on why investments, if any, were found not to be
qualified by the commissioner.
(2) Nothing in this subdivision shall preclude an insurer that is
a member of an insurance holding company system, as defined in
Article 4.7 (commencing with Section 1215) of Chapter 2, from
complying with paragraph (1) through a single filing on behalf of the
entire group of affiliated companies, provided that the data so
filed accurately reflects the investments made by each of the
affiliates, and accurately attributes, by National Association of
Insurance Commissioners (NAIC) number or other identifier required by
the commissioner, which of the investments were made by each
affiliated company.
(3) Nothing in this subdivision shall preclude an insurer from
satisfying the requirements of paragraph (1) through a filing made by
a community development financial institution, provided all of the
following conditions are met:
(A) The insurer has no less than a 10 percent ownership interest
in a COIN-certified community development financial institution.
(B) The insurer makes community development investments and
community development infrastructure investments in and through the
community development financial institution.
(C) The community development financial institution accurately
files the information required by paragraph (1) with the commissioner
on behalf of the insurer and accurately attributes, by NAIC number
or other identifier required by the commissioner, which investments,
including the dollar amounts of the investments, were made by each
insurer on whose behalf the community development financial
institution is reporting.
(b) The commissioner shall, by May 31, 2014, provide information
on the department's Internet Web site on the aggregate insurer
community development investments and community development
infrastructure investments. Insurers that make investments that are
innovative, responsive to community needs, not routinely provided by
insurers, qualify as green investments, or have a high degree of
positive impact on the economic welfare of low- or moderate-income
individuals, families, or communities in urban or rural California
shall be identified.
(c) The department shall also, by May 31, 2014, provide
information on the department's Internet Web site regarding the
aggregate amount of California public debt (including all debt issued
by the State of California or a California state or local government
agency) purchased by insurers as reported to the department in their
NAIC annual statement filing pursuant to Section 900 or Section
11131.
(d) The department shall also, by May 31, 2014, provide on its
Internet Web site the aggregate amount of identified California
investments, as reported to the NAIC in the annual statement filed
pursuant to Section 900 or Section 11131.
(e) The department shall also biennially provide information on
its Internet Web site regarding the aggregate amount of identified
California insurer investments in green investments.
(f) This article shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.

926.3. (a) It is the policy of the State of California that (1)
insurers should, where practicable, be supportive of community
development investments and community development infrastructure
investments, and insurers should be encouraged to invest in prudent
community development investments and community development
infrastructure investments that benefit California and California's
low- and moderate-income communities; (2) every admitted insurer that
writes a substantial amount of insurance in the state should
consider community development investments and community development
infrastructure investments; and (3) the California Organized
Investment Network is a part of the department, and has the
responsibility to pursue active measures to encourage community
development investing by admitted insurers.
(b) Each insurer admitted in California that writes premium in
California equal to or in excess of one hundred million dollars
($100,000,000) annually shall develop, and file with the commissioner
no later than July 1, 2011, a policy statement on community
development investments and community development infrastructure
investments that expresses the insurer's goals for these investments
during the current and following calendar year. Thereafter, each
insurer subject to this subdivision shall biennially review its
policy statement on community development investments and community
development infrastructure investments and, if the insurer revises or
changes its policy statement, submit the new policy statement to the
commissioner no later than July 1 of each odd-numbered year. The
initial policy statement filed with the commissioner shall satisfy
the requirement of this subdivision if the insurer's policy statement
has not changed. These filings shall be public information. For
purposes of this subdivision, "policy statement" means a statement of
principle intended to influence a decision or action. The policy
statement may include general goals or specific investment goals, but
is not required to contain specific investment goals or thresholds.
(c) The commissioner shall establish a link on the department's
Internet Web site that provides public access to the contents of each
insurer's policy statement and the data on community development
investments and community development infrastructure investments
provided by each insurer pursuant to subdivision (b).