The California Department of Insurance said it has signed a memorandum of understanding with German insurance regulators, the first the state has signed with a foreign country.

Insurance Commissioner Steve Poizner announced Monday that the department signed the memorandum with Bundesanstalt f?r Finanzdienstleistungsaufsicht (BaFin), Germany's regulator.

"Consumers in California and Germany will be better protected with this agreement in place," said Mr. Poizner in a statement. "Our insurance industries will be better served, too."

The department said the memorandum "provides a formal basis for reasonable cooperation and coordination between the CDI and BaFin to exchange information and, where appropriate, investigative assistance regarding companies and persons engaged in the business of insurance."

The memorandum does not affect any laws or regulations in either California or Germany, the department said. It contains privacy provisions to protect confidential information of individuals and companies.

The commissioner said he believes the memorandum "will provide a blueprint for future agreements" between the state and other nations.

"In a flat world, business is more migratory than ever, so governments must work together regardless of boundaries," he said.

According to the National Association of Insurance Commissioners, there is a similar agreement between Pennsylvania and Australia, and other such agreements are in the works.

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Calif. Insurance Dept. Signs Pact With Germany

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