Article 10.1. California Insurance Community Investment of California Insurance Code >> Division 1. >> Part 2. >> Chapter 1. >> Article 10.1.
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) "High-impact investments" means investments that are
innovative, responsive to community needs, not routinely provided by
insurers, 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 areas of California.
(g) "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.
(h) "Investment" means a lawful equity or debt investment, or
loan, or deposit obligation, or other investment or investment
transaction allowed by the Insurance Code.
(i) "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.
(j) "MSA" means a metropolitan statistical area as defined by the
Director of the Office of Management and Budget.
(k) "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.
(l) "Nonmetropolitan area" means any area that is not located in
an MSA.
(a) (1) Each admitted insurer with annual premiums written
in California equal to or in excess of one hundred million dollars
($100,000,000) for any reporting year shall provide information to
the commissioner on all of its community development investments,
community development infrastructure investments, and green
investments in California. This information shall be reported by July
1, 2016, on investments made or held during the calendar years 2013,
2014, and 2015 and list, if applicable, investments that are
high-impact, green, or rural. The information reported by insurers
may include investments both held and originated, the percentage of
any investment that qualifies, and why an investment qualifies. This
information shall be provided as part of the required filing pursuant
to Section 900 or 11131, or through a data call, or by other means
as determined by the commissioner. The California Organized
Investment Network (COIN) shall provide insurers with information on
why investments, if any, were found not to be qualified by the
commissioner.
(2) This subdivision does not 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) This subdivision does not 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 December 31, 2016, provide all of
the following:
(1) Information on the department's Internet Web site on the
aggregate insurer community development investments and community
development infrastructure investments. Insurers that make
high-impact investments that are defined as innovative, responsive to
community needs, not routinely provided by insurers, 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 areas of California shall be identified.
(2) Information on the department's Internet Web site on the
actions taken by COIN to analyze the data by insurers for the purpose
of creating and identifying potential investment opportunities,
including the development of investment opportunity bulletins. This
information shall state the efforts made by COIN to market and expand
outreach to communities.
(c) The department shall also, by December 31, 2016, 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 11131.
(d) The department shall also, by December 31, 2016, 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 11131.
(e) The department shall also by December 31, 2016, 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,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
(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. 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).