INSURANCE DECISION REVERSED : 20TH CENTURY CLEARED TO RENEW QUAKE POLICIES.Byline: Gregory J. Wilcox Daily News Staff Writer Reversing an earlier position, state regulators Tuesday said that Woodland Hills-based 20th Century Industries can renew homeowner insurance policies that had been scheduled for cancellation. Renewals can start Feb. 15, said 20th Century spokesman Rick Dinon. The ruling provides the company with an alternative to joining 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. , the nation's first state-run quake insurance program. The ruling also saves 20th Century the $11 million fee it would have had to pay to join the authority. Faced with huge losses from the January 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. , former 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. John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. ordered the company to stop selling quake insurance that July. The company had to stop renewing policies as of last July. At that time the company, which had quake claims totaling about $1 billion, still had about 170,000 homeowner policies. The ruling Tuesday by Insurance Commissioner Charles Quackenbush means that about 70,000 policy holders can preserve their coverage. Quackenbush was not available for comment Tuesday. One of his spokeswoman, Danna Spurrier Spur´ri`er n. 1. One whose occupation is to make spurs. , said that the ruling is intended to protect the company's remaining 70,000 policy holders. She could not address the question of fairness to the approximately 100,000 policy holders who had their insurance canceled. ``Unfortunately there is nothing that can be done about the canceled policies,'' she said. ``But this is one part of a step-by-step plan to stabilize the homeowner market and get the best possible rates for consumers.'' California regulations require that companies selling homeowner insurance in the state also offer earthquake coverage. Reversal of the state's cancellation order was possible because 20th Century forged a business partnership with American Home Assurance Co., a subsidiary of American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group will underwrite the earthquake coverage. ``Partnering with AIG to offer earthquake protection for 20th Century homeowner customers is a creative, market-driven solution to the earthquake mandate,'' William L. Mellick, 20th Century's president and chief executive officer said in a statement. AIG executives could not be reached for comment. |
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