California Earthquake Authority (CEA) 1
California Earthquake Authority (CEA) 1 : "?the California Earthquake Authority was formed in 1996 in response to a crisis in the residential property insurance market following the Northridge earthquake in 1994. According to the Insurance Information Institute, California insurers had collected only $3.4 billion in earthquake premiums in the 25-year period prior to the Northridge earthquake but had paid out more than $15 billion on Northridge claims alone. Moreover, insurers representing about 95 percent of the homeowners insurance market in California began to limit their exposure to earthquakes by writing fewer or no new homeowners insurance policies, triggering a crisis that threatened California's housing market and stalled the state's recovery from recession". (GAO, Natural Disasters: Public Policy Options?, Nov 2007, 18 See also: PP. 57-59)
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