2007 California Insurance Code Article 10.1. California Insurance Community Investment ... 926.1-926.2

CA Codes (ins:926.1-926.2)

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-income 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-income or moderate-income individuals or families.

   (2) Community facilities or community services providers
(including providers of education, health, or social services)
directly benefiting low-income 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-income, 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-income 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, if these
investments directly benefit low-income, 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-income 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-income 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) "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.
   (f) "Investment" means a lawful equity or debt investment, or
loan, or deposit obligation, or other investment or investment
transaction allowed by the Insurance Code.
   (g) "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.
   (h) "MSA" means a metropolitan statistical area as defined by the
Director of the Office of Management and Budget.
   (i) "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.
   (j) "Nonmetropolitan area" means any area that is not located in
an MSA.


926.2.  (a) Each insurer admitted in California shall provide
information biennially to the commissioner on all 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.
   (b) The commissioner shall biennially 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, or
have a high degree of positive impact on the economic welfare of
low-income or moderate-income individuals, families, or communities
in urban or rural California shall be identified.
   (c) The department shall also biennially 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 National
Association of Insurance Commissioners (NAIC) annual statement
filing pursuant to Section 900 or Section 11131.
   (d) The department shall also biennially 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 first report under this article shall be filed with the
commissioner by May 31, 2007.
   (f) Insurers that did not comply with the voluntary community
investment data call issued by the commissioner in May 2005 shall
provide the information requested therein to the commissioner on or
before February 28, 2007.
  (g) This article shall remain in effect only until January 1, 2011,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2011, deletes or extends that date.

   (h) Nothing in this article shall limit the authority of the
commissioner to ask for data concerning community development
investments on a voluntary basis on or after January 1, 2010, if this
article is not extended.