WASHINGTON - California's insurance commissioner warned insurance executives on Aug. 6 that a failure to invest more in low-income California communities might result in Community Reinvestment Act-like state legislation aimed at them.
Commissioner Harry W. Low made his warning in a letter sent to the chief executives of some 1,500 insurance companies operating in the state.
"You probably know that many prominent community advocates and legislators do not consider the current level of industry participation" in California's voluntary community development investment program "to be adequate," he wrote. "One way to avoid a mandate is by having a successful voluntary California organized investment network." Mr. Low's letter asked the chief executives to set an annual community investment goal and report it to him by Sept. 5.