California Insurance Commissioner Steve Poizner is initiating a review of insurance companies doing business in California to determine their level of Iran-related investments.

Poizner, who will officially announce his review on Monday, is acting on two fronts.

He wants to ensure compliance with a state law that took effect in January that prohibits California-based companies from investing directly in Iran’s government or companies associated with it.

He then wants to review investments in certain sectors for all insurance companies operating in California to determine whether they indirectly benefit Iran.

The insurers will be required to list any investment in companies that conduct at least $20 million of business in the Iranian petroleum or natural gas sectors. They also will be required to list investments of any amount in companies doing business in the banking, nuclear or defense sectors of Iran.

“Our preliminary analysis does indicate there are tens of billions of dollars by companies that do business in California invested indirectly in Iran,” Poizner told The Associated Press. “They’re investing in companies that it turns out have substantial investments in Iran, in defense sectors and energy sectors. That’s what convinced me to take this next step.”

He will give companies 90 days to report their investments to his office. Depending on the information revealed, Poizner’s office might share the reports with the state Legislature or members of Congress.

It has not yet informed the insurance industry of the details of the investment review, said Darrel Ng, a spokesman for Poizner’s office.

Holding investments in private companies that may do business with Iran does not violate California or federal law, and Poizner has no authority to order insurance companies to divest in those companies.

Yet he does have broad authority to scrutinize the financial soundness of the investments held by all insurance companies licensed in California. As a consumer-protection measure, Poizner can force California-based insurance companies to divest in any investment he deems unsound.

He could, for example, order divestment if he determined that even an indirect investment in an Iranian defense, energy or banking sector was financially risky because of questions about the country’s stability. A public hearing is required before such an order could take effect.

The state cannot require divestment by companies headquartered outside California.

Poizner explained his decision to seek the information partly as a way to determine whether indirect investments in the Iranian economy provide a way for California-based insurance companies to get around the state law that took effect this year.

“That might be a major loophole here, where billions might be flowing into Iran,” Poizner said.

He also said his review could help determine whether insurance companies are helping finance a terrorist threat against the United States or its allies. The U.S. has listed Iran as a state sponsor of terrorism.

Insurance companies in general are the world’s largest investors, using premiums to invest $3 trillion to $4 trillion, Poizner said. About 250 insurance companies are headquartered in California, while about 1,500 do business in the nation’s most populous state.

Poizner said he is sending letters to other insurance regulators nationwide asking them to perform similar reviews using their powers to scrutinize insurers’ investments.

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