BILL MOVES PAST BIG OBSTACLE IN TRY FOR STATE QUAKE INSURANCE\AGENCY.Byline: Mark Katches Daily News Sacramento Bureau A bill that would create a state-operated agency to sell scaled-down earthquake insurance Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. policies cleared a major hurdle Wednesday, but 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. argued the coverage would be too generous. The Senate Insurance Committee amended SB 1993 on a 6-1 vote and sent it to the Senate Judiciary Committee The U.S. Senate established the Committee on the Judiciary on December 10, 1816, as one of the original 11 standing committees. It is also one of the most powerful committees in Congress; among its wide range of jurisdictions is investigation of federal judicial nominees and oversight of for a hearing today. The bill by Sen. Charles Calderon, D-Montebello, would offer a 10 percent deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). , $4,000 in living expenses and $7,500 in contents coverage. It also would require a $6 billion insurance industry contribution to the $10.5 billion quake Quake - A string-oriented language designed to support the construction of Modula-3 programs from modules, interfaces and libraries. Written by Stephen Harrison of DEC SRC, 1993. fund as long as it operates. But, Quackenbush said the version isn't satisfactory, and will discourage insurers from participating. The commissioner, who drafted the original plan, wants the state to offer policies that include a 15 percent deductible and lower payouts - $1,500 in living expenses and $5,000 in contents coverage in the event of an earthquake. "As currently constructed, this will not work," Quackenbush said. Committee Chairman Herschel Rosenthal, D-Los Angeles, cast the lone vote against the plan after his alternative to the state authority was defeated. Rosenthal wanted to create a fund that would allow insurance firms to keep offering earthquake policies with the government acting as a backstop against massive losses. The authority must be created by March 31, or it will lose $1.8 billion in financial commitments to provide part of the seed money for the fund, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. state officials. Insurance companies since the 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. have been reluctant to write new homeowner policies with earthquake coverage out of concern that another big quake will bankrupt them. They also have threatened to cancel up to 1 million policies this year if the state authority is not created. Consumer groups have lobbied against the idea, saying that only insurers will benefit from the plan. |
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