California Earthquake Authority (CEA) 2
California Earthquake Authority (CEA) 2 : "The CEA is structured with many different layers of capital: (1) Initial layers from private insurers who were permitted not to offer earthquake coverage in exchange for their voluntary participation in capitalizing the CEA and covering the next limited layer of earthquake losses (2) Various layers of reinsurance (3) A layer financed by state revenue bonds (4) A top layer funded by post-event assessments on participating private insurers. The coverage provided by the CEA is capped, currently at approximately $8.2 billion. This means that in a future earthquake, insured parties would bear any losses exceeding the CAT limit (unless they bought additional coverage on their own)". 4 (Financial Services Roundtable, Nation, 2007, 47)
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