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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Virginia officials encouraging residents to purchase earthquake insurance
Virginia officials are urging residents to check their home insurance policies to ensure they have protection against earthquakes. The initiative comes as a new law takes effect, which will force insurance companies to disclose what their various policies do not offer coverage for. State officials are hoping that residents will be proactive in finding out what coverage they may lacking and take steps to rectify the problem before they fall victim to a devastating natural disaster. According to the State Corporation Commission’s Bureau of Insurance, many Virginia residents do not…
Read MoreCalifornia 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 MoreOklahoma quake changes the way people think about insurance
Following the earthquake in Oklahoma many people have opened their eyes to the type of coverage that they do – and do not – have for their homes and belongings. What they’re discovering, far more often than not, is that their insurance coverage does not extend to the type of damage that would result from a quake. Typical renters’, homeowners’ and commercial insurance will not offer protection for a structure or the possessions it contains, should they be damaged in an earthquake. The residents of Oklahoma are asking questions about…
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…
Read MoreColorado continues to be rocked by aftershocks from last week’s quake, insurers highlighting the importance of protection
Last week, Colorado was rocked by a magnitude-5.3 earthquake that went largely unnoticed as it was a mere two hours before the now infamous Virginia earthquake. Both events triggered mild panic and dismay due to their rarity. While Virginia and its neighboring states have been rattled by a handful of weak aftershocks, Colorado has been shaken by a total of 13 so far. Insurance companies are taking this opportunity to promote earthquake coverage in the hopes of bolstering the meager number of such policies nationwide. Colorado’s quake was the largest…
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