CSAA to discontinue accepting new homeowner insurance applications.SAN FRANCISCO--(BUSINESS WIRE)--Oct. 31, 1994--The California State Automobile Association The California State Automobile Association is a motor club dedicated to improving roads, proposing traffic laws and improvement of overall driving conditions. It was founded in 1907 as an offshoot of the Automobile Club of Southern California (ACSC) to serve members in Northern Inter-Insurance Bureau (CSAA CSAA Child Study Association of America. ) will discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: accepting new applications for homeowner insurance policies in California beginning Nov. 4. The company will continue to provide coverage to its current homeowner policyholders. Automobile insurance applications will not be affected, and the company will continue to accept applications for homeowner coverage in Nevada. The not-for-profit insurer cited its mounting earthquake exposure, made worse by the withdrawal of many insurers from the California homeowner market earlier this year, as the reason for its decision. ``Continuing to accept new homeowner policies could threaten our ability to protect existing policyholders in the event of a major earthquake,'' said CSAA spokesperson Barry Shiller. Thirty percent of CSAA's 257,000 California homeowner policyholders carry earthquake coverage, up from 8 percent in 1983. In the Bay Area, more than 40 percent of CSAA homeowner policyholders carry earthquake coverage, and seismologists have predicted that there is a 90 percent likelihood of a major earthquake in the urban Bay Area within the next 30 years. Shiller emphasized that CSAA continued to sell homeowner policies after many insurers stopped doing so. ``We've hung in there long after many insurers withdrew from the market, but it would be unfair to our existing policyholders to allow our catastrophe exposure to expand any further. ``Our earthquake exposure has grown dramatically in our most earthquake-prone territory, and we simply cannot continue to accept a disproportionate share of California's 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. demand.'' Shiller expressed hope that Congress will give swift attention to the National Disaster Protection Act (NDPA NDPA National Decorating Products Association NDPA National Disaster Protection Act ), which could provide a solution to the nation's growing catastrophe problem. ``A national program is the best approach for managing future property disasters in California and elsewhere. CSAA hopes that the Congress gives this issue prompt and serious attention.'' CSAA is the Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern and Nevada AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. club. It offers auto, home and personal liability insurance protection to club members through the not-for-profit CSAA Inter-Insurance Bureau. CONTACT: California State Automobile Association Barry Shiller, 415/565-2291 |
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