California insurance market getting a shake down A 2010 ballot initiative could cause the Seismic Safety Commission in California to lose its funding before the end of 2012. The ballot initiative was designed to help to make it more difficult for government fees to be imposed on individuals and businesses. It also caused the California Legislative Analyst’s Office to decide that the proposed funding method by the governor to the Safety Commission is now unconstitutional. The analyst made the recommendation that there be a rejection by the Legislature of the…
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California insurance regulators target GeoVera Insurance, imposing fines and requiring the company to make changes to underwriting
California insurance regulators have taken action against GeoVera Insurance Co., providers of residential earthquake insurance, this week. Regulators took notice of the company after having received a multitude of complaints from policyholders. According to these complaints, the insurer’s underwriting procedures are not as adequate as they are supposed to be. Regulators have investigated the matter and found that the insurer’s practices were indeed falling short of the state’s standards. GeoVera will be facing major changes as regulators look to make the company more compliant with state laws. The insurer will…
Read MoreWhat consumers should know about buying earthquake insurance
The number of earthquakes in states that are not known for tremors – such as the recent 5.6 point quake in Oklahoma and the earthquakes in Colorado and Virginia this summer – have underlined the fact that flooding, severe weather, and fires are not the only types of natural disaster that can cause damage to a home, no matter where you live. Though California is the state that is at the highest risk of earthquakes, and it is also long overdue for another major tremor, states that consider quakes to…
Read MoreMost California homeowners lack earthquake coverage
Data from the Insurance Information Network of California has shown that less than 12 percent of homeowners within the state were protected by earthquake insurance in 2010, and that less than 10 percent of businesses had this protection. According to the California Earthquake Authority’s CEO, Glenn Pomeroy, the standard insurance coverage for homes and businesses will not provide protection against the damage resulting from a tremor. This organization is nonprofit and works to offer homeowners in California affordable earthquake insurance products. Pomeroy also stated that among homeowners without any form…
Read MoreDisaster recovery cost reduction efforts receive applause from California Earthquake Authority
U.S. Rep. John Campbell (R-48), from California, has received praise from the California Earthquake Authority, for his introduction of H.R. 3125, which was legislation to pair with S. 637, that was introduced by U.S. Sen. Dianne Feinstein, earlier in 2011. Together, the two bills will work to bolster the system for natural disaster recovery in the United States, by setting the Earthquake Insurance Affordability Act (EIAA) into effect. CEO Glen Pomeroy from the California Earthquake Authority, has announced his gratitude to Sen. Feinstein and Rep. Campbell for the bipartisan efforts…
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