California Earthquake Authority Governing Board Approves Rate Application.SACRAMENTO, Calif. -- The California Earthquake Authority Established in September 1996 by the California Legislature, the California Earthquake Authority is a privately funded, publicly managed organization that sells California earthquake insurance policies through participating insurance companies. (CEA CEA carcinoembryonic antigen. CEA abbr. carcinoembryonic antigen CEA (Carcinoembryonic antigen) ) announced successful placement and approval of its reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. program for 2008 and submission of an application for a 3.5 percent base program rate increase. Staff continues work on legislation to address the December 2008 expiration of its ability to assess insurance companies that sell CEA insurance policies. The Governing Board Noun 1. governing board - a board that manages the affairs of an institution board - a committee having supervisory powers; "the board has seven members" of the CEA, in a regular public meeting on June 26, 2007, approved reinsurance contracts with 43 reinsurers for the CEA's program that will provide $2.268 billion in reinsurance coverage for 2008. This reinsurance is part of the claim-paying capacity recommended by to allow the CEA to pay, at a minimum, all claims from a 1-in-600-year earthquake or series of earthquakes, and a financial structure that continues to provide a 99.833 percentage probability of paying all claims that might arise from any earthquake, or series of earthquakes, that might occur through November, 2008. The Governing Board also approved submission of an application to the California Insurance Commissioner California Insurance Commissioner is an elected executive office position in California who is in charge of the California Department of Insurance. The current Insurance Commissioner is Steve Poizner. for an overall 3.5 percent rate increase to the base program. If approved, new rates will take effect January 1, 2008. The change replaces a previous approved "dwelling" rate change scheduled to become effective July 1, 2008, as part of a three-year rate plan implemented July 1, 2006. Under current California law California Law consists of 29 codes, covering various subject areas, the State Constitution and Statutes. See also
v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. its capital. Approximately $2.183 billion of this assessment authority expires on December 1, 2008. Staff advised it is highly desirable to find a method of replacing this claim-paying capacity to ensure the continued strong financial backing of CEA policies that remain in force after November, 2008. At its meeting on June 26, 2007, the Governing Board discussed this matter and directed staff to seek the enactment of legislation in 2007 to address this issue, including the consideration of replacing the expiring assessment authority with new assessment authority. |
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