In view of the law requiring inclusion of earthquake coverage in homeowners’ poli-
cies, the only legal response to their fear of high losses was for insurers to stop offering
new homeowners’ policies. The California Insurance Department surveyed insurers and
found that up to 90 percent of them had either stopped or had placed restrictions on the
selling of new homeowners’ policies. After extended discussions between the California
Insurance Department and the large insurers in 1996, an advisory group of insurers and
actuaries proposed the formation of a state-run earthquake insurance company—the ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month, and much more.