Zurich Insurance Group AG is among companies being questioned by New York’s insurance regulator in a widening probe into compliance with an Iran sanctions law, according to a person familiar with the matter.The state Department of Financial Services is asking insurers to explain their policies and procedures to avoid violations of the Iran Freedom and Counter-Proliferation Act of 2012, according to the person. The act took effect July 1.
“The resulting sanctions could jeopardize the ability of any involved insurer to conduct business in the United States,” the department said in a letter to the insurers obtained by Bloomberg News. “Recently, the Department learned that several companies have insured trades made with Iran.”
The regulator, led by Superintendent Benjamin Lawsky, contacted a group of insurers in June about compliance with the law. That group included Swiss Reinsurance Co. and Lloyd’s of London.
Besides Zurich, other companies contacted in the newest letter are American International Overseas Ltd., AXA Global Risks, and St. Paul Reinsurance Co. Ltd.
–With assistance from Noah Buhayar in New York. Editors: John Pickering
Copyright 2013 Bloomberg.