20TH CENTURY ALLOWED TO INSURE HOMES.Byline: Staff and Wire reports 20th Century Insurance Co., which was almost destroyed by the 1994 Northridge Earthquake The Northridge earthquake occurred on January 17, 1994 at 4:31 AM Pacific Standard Time in the city of Los Angeles, California. The earthquake had a "strong" moment magnitude of 6. , was allowed to resume selling homeowners policies Tuesday after agreeing to set up a fund for people whose earthquake-damaged homes still haven't been fixed. The insurer, which lost about $1.1 billion after the January 1994 quake, stopped selling homeowners policies late that year and was allowed by the state Department of Insurance to let about 80,000 homeowners policies lapse. The company was subsequently fined $100,000 for problems it had handling the 46,400 claims that arose from the quake, said Department of Insurance spokeswoman Dana Spurrier Spur´ri`er n. 1. One whose occupation is to make spurs. . The insurer, which teetered on the edge of bankruptcy after the earthquake, regained its financial footing by concentrating on its auto insurance business and by receiving a $371 million cash infusion from American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. in exchange for a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in the firm. The agency allowed 20th Century to start selling homeowners insurance again after it agreed to establish a $6 million fund for both insured and uninsured homeowners and nonprofit organizations Nonprofit Organization An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well. Notes: Examples of non-profit organizations are charities, hospitals and schools. with property damage from the 1994 temblor. The Northridge Earthquake Hardship/Humanitarian Fund will be administered by a still-unnamed third party, Spurrier said. State Insurance Commissioner Chuck Quackenbush Charles "Chuck" Quackenbush (born 1954) is a Florida law enforcement officer and former California politician. He served as Insurance Commissioner of California from 1995–2000 and as a California State Assemblyman representing the 22nd District, from 1986–1994. said the company's re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had. 2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the will ``spark additional competition in the homeowners insurance market to further drive down policyholder costs.'' 20th Century spokesman Ric Hill said the $6 million fund was not established to punish the company for the problems it had after the earthquake, but as an extension of its charitable activities. ``We took the steps we had to take to settle the claims because of our reputation. This is totally separate from that,'' Hill said. He said 20th Century will begin offering new homeowners policies in the second half of this year. Prior to its suspension of homeowner sales, 20th Century insured more than 236,000 residences in California. 20th Century currently insures more than 1.1 million vehicles in California. |
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