EPICENTER OF QUAKE ANGUISH PANEL HEARS INSURANCE COMPLAINTS.

Byline: Jason Kandel Staff Writer

GRANADA HILLS - Hundreds of Northridge earthquake victims attended a state Senate Insurance Committee hearing Wednesday night saying they were cheated over home insurance quake payments, causing six years of anguish. Jean Bomar, of Winnetka, was at ground zero, and was awakened by the rocking and rolling of the Northridge earthquake on Jan. 17, 1994, about 4:30 a.m.

``The insurance company and the employees did their best to delay the settlement, prolonging my agony,'' she said in an interview. ``I think (state Insurance Commissioner Charles) Quackenbush looked the other way on a lot of complaints. I fear for the Valley next time there's an earthquake.''

State Senator Jackie Speier, D-San Mateo, chairwoman of the state Senate Insurance Committee, led the panel that included state senators Tom Hayden, D-Los Angeles, and Richard Alarcon, D-Van Nuys, among others. They listened to sometimes emotional testimony from many victims of the earthquake.

Speier reassured anxious people in the audience.

``I will not leave, and I'm sure many of my coleagues will not leave, until we here from all of you,'' she said, and added, ``but we can't promise that all of your claims will be paid. I can guarantee you one thing, that the state Insurance Committee is committed to making things right.''

Representative from several insurance companies were on hand Wednesday to hear from the public, and some vowed to help out.

``For anyone who has not had their day in court, who has not had an appraisal, who wants to be heard, we want to hear from them,'' said 21st Century Insurance vice president of corporate relations Ric Hill. ``That's why I'm here. I have waiver forms.''

The meeting was an opportunity for the committee to identify factors that have held up insurance payments to the victims, and examine how $6 million in restitution funds from 21st Century Insurance Company might be used to help remaining victims.

Teri Diamond, of the nonprofit Community Assisting Recovery Inc., which has helped earthquake victims, spoke out on behalf of many of the victims.

``I'm here for two reasons,'' she said. ``To personally attest that the insurance companies failed us, and that the deptartment of insurance failed us.''

Diamond was among hundreds of victims who rallied together Wednesday.

Shortly before the insurance hearing, CARE Inc. held a press conference to complain of inaction by the state Legislature and abuses by the insurance industry.

Also, Simi Valley Councilwoman Sandi Webb passed around a petition to recall Quakenbush, who is at the center of the furor.

Critics have accused him of pressuring companies, under threat of enormous fines, into paying off millions of dollars into foundations that he created and controlled, leaving thousands of earthquake victims in the lurch.

The Wall Street Journal reported Wednesday that Quackenbush received a $50,000 campaign contribution from the head of Mercury Insurance Group less than two weeks after regulators froze a proposed enforcement action against the company.

Quackenbush held a press conference Wednesday afternoon attempting to shift some of the blame from himself to the Legislature.

He called for an end to delays in passing legislation that would give policy holders reasonable time in which to file claims insurance companies following an earthquake.

``This bill must be taken off the inactive file and passed immediately for the benefit of eathquake victims in Northridge, as well as for future victims who will suffer damage by the inevitable quakes that will strike California in years to come,'' Quackenbush said.

A Sacramento Superior Court judge on May 5 froze the funds in the California Research and Assistance Fund which was scheduled to receive $6.3 million this week from 21st Century for distribution to earthquake victims.

The judges order followed a filing by the Attorney General that described CRAF as a sham operation whose monies were improperly diverted by one of the insurance commissioner's deputies.

At the meeting Wednesday, Hayden called for a ban on contributions by insurance companies to politicians.

``Money talks,'' he said. ``I think we have a powerful and vivid case here. We need to take the insurance companies out of the political process to keep it entirely democratic.''

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Photo: (1 -- 2) Hundreds of Northridge Earthquake victims attend a meeting of the state Senate Insurance Committee Wednesday night in Granada Hills. Below, state Sens. Tom Hayden, Jackie Speier, Nell Soto and Richard Alarcon listen to sometimes emotional testimony over insurance payments for quake damage.