California Insurance Code CHAPTER 8.6 - California Earthquake Authority

  • Section 10089.5.
    As used in this chapter:(a) “Authority” means the California Earthquake Authority.(b) “Available capital” means the sum of all moneys and invested assets actually held in the California...
  • Section 10089.6.
    (a) There is hereby created the California Earthquake Authority, which shall be administered under the authority of the commissioner and have the powers conferred by this...
  • Section 10089.7.
    (a) The authority shall be governed by a three-member governing board consisting of the Governor, the Treasurer, and the Insurance Commissioner, each of whom may name...
  • Section 10089.8.
    (a) The authority shall operate pursuant to a written plan of operations. The panel shall submit a plan to the board for approval. If it approves...
  • Section 10089.9.
    (a) Upon commencement of participation in the authority, each participating insurer shall be required to execute a contract with the commissioner and the authority that sets...
  • Section 10089.10.
    To expand the capacity of the authority and achieve maximum capacity for writing earthquake coverage, the authority shall do both of the following acts, on...
  • Section 10089.11.
    (a) The commissioner shall adopt regulations to implement the provisions of this chapter within 60 days of its effective date. The regulations shall be adopted as...
  • Section 10089.12.
    The commissioner shall have full power and authority to examine the books and records of the authority at any time, and in connection with the...
  • Section 10089.13.
    (a) One year following its commencement of operations, and annually thereafter by each August 1, the authority shall report to the Legislature and the commissioner on...
  • Section 10089.14.
    (a) The authority shall not issue any earthquake policy and no insurer shall transfer any earthquake risk to the authority until all of the following conditions...
  • Section 10089.15.
    (a) Initial operating capital shall be contributed by insurance companies admitted to write residential property insurance in the state. Each insurer that elects to participate in...
  • Section 10089.16.
    (a) On application to the board, payment of any assessments and fees calculated by the board, and fulfillment of any additional requirements imposed by the board,...
  • Section 10089.17.
    Notwithstanding subdivision (h) of Section 10089.7, the authority shall be subject to the provisions of the Political Reform Act of 1974 (Title 9 (commencing with...
  • Section 10089.19.
    (a) Participating insurers that want to withdraw from the authority may do so on 12 months’ written notice to the authority. Insurers that withdraw shall not...
  • Section 10089.20.
    The authority shall renew any policy of basic residential earthquake insurance, provided the authority receives payment of the applicable renewal premium on or before the...
  • Section 10089.21.
    The authority is a public instrumentality of the State of California and the exercise of its powers is an essential state governmental function. No provision...
  • Section 10089.22.
    (a) The authority shall be continued in existence for so long as its bonds are outstanding. Unless and until the authority is terminated pursuant to Section...
  • Section 10089.23.
    (a) (1) If at any time following the payment of earthquake claims and claim expenses the authority’s available capital is reduced to less than three hundred fifty...
  • Section 10089.24.
    (a) Notwithstanding any other provision of this chapter, the maximum permissible assessment pursuant to Section 10089.23 of a participating insurer that began renewing business into the...
  • Section 10089.25.
    Beginning December 31, 1997, and annually thereafter on the 30th of April, the board shall notify each participating insurer of the maximum earthquake loss funding...
  • Section 10089.26.
    (a) The authority shall issue policies of basic residential earthquake insurance, including an option for earthquake loss assessment policies for individual condominium unit properties, to any...
  • Section 10089.27.
    (a) Every participating insurer that has in-force residential earthquake insurance policies in the state as of the date of commencement of authority operations shall renew each...
  • Section 10089.28.
    (a) All policies of residential earthquake insurance provided by the authority shall be written by the authority. Authority policies shall be marketed and policyholders serviced by...
  • Section 10089.29.
    (a) If benefits paid by the authority following an earthquake event exhaust the total of (1) the authority’s available capital, (2) the maximum amount of all...
  • Section 10089.30.
    If claims and claim expenses paid by the authority due to earthquake events exhaust the total of (a) the authority’s available capital, (b) the maximum...
  • Section 10089.31.
    If claims and claim expenses paid by the authority due to earthquake events that commence on or after December 1, 2008, exhaust the total of...
  • Section 10089.32.
    The authority shall endeavor at all times to make specific authority earthquake policyholder assessments, and the Treasurer shall endeavor at all times to secure debt...
  • Section 10089.33.
    (a) If the average daily balance of the authority’s available capital exceeds six billion dollars ($6,000,000,000) for the last 180 days of any calendar year, the...
  • Section 10089.34.
    (a) (1) The policies issued by the authority shall not be subject to assessment for, nor shall any authority policyholder be eligible for benefits from, the California...
  • Section 10089.35.
    (a) If at any time the board determines that all the authority’s available capital may be exhausted and no source of additional funds such as assessments,...
  • Section 10089.36.
    In the event a natural disaster program is enacted by Congress, the panel shall convene and prepare a plan to dissolve the authority or conform...
  • Section 10089.37.
    The board shall set aside in each calendar year an amount equal to 5 percent of investment income accruing on the authority’s invested funds, or...
  • Section 10089.38.
    Upon the development and implementation of an economical system satisfactory to the board and the commissioner to prevent misapplication of mitigation funds, the Earthquake Loss...
  • Section 10089.39.
    (a) The operational rules of the Earthquake Loss Mitigation Fund shall be part of the authority’s plan of operations.(b) On or before July 1, 2000, the authority...
  • Section 10089.395.
    (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority created in 2012...
  • Section 10089.397.
    (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority created in 2012...
  • Section 10089.40.
    (a) Rates established by the authority shall be actuarially sound so as to not be excessive, inadequate, or unfairly discriminatory. Rates shall be established based on...
  • Section 10089.41.
    (a) The offer of an authority policy by a participating insurer shall constitute a mode of insurer compliance with Chapter 8.5 (commencing with Section 10081) of...
  • Section 10089.42.
    (a) At least once each year a participating insurer shall provide each of its residential property insureds with marketing documents produced at the authority’s expense.(b) This section...
  • Section 10089.43.
    Upon termination of the authority by the Legislature, its remaining funds shall be transferred to the General Fund unless otherwise directed by the Legislature.(Added by...
  • Section 10089.44.
    Notwithstanding any other provision of law, premiums collected by the authority shall be exempt from collection of the state’s insurance premium tax, and the amount...
  • Section 10089.46.
    Bonds issued under this chapter shall not be a debt or liability of the state or of any political subdivision of the state, or a...
  • Section 10089.47.
    Bonds issued by the authority are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors, administrators, trustees, and...
  • Section 10089.48.
    Interest earned on any bonds issued by the authority shall at all times be free from state personal income tax and corporate income tax.(Added by...
  • Section 10089.49.
    The state hereby pledges to and agrees with the holders of bonds that the state will not limit, alter, or restrict the rights hereby vested...
  • Section 10089.50.a.
    The Treasurer may from time to time enter into one or more credit facilities permitting the authority to draw an amount up to one billion...
  • Section 10089.51.
    The authority shall have the power to pledge to the providers of credit facilities and to the owners of bonds the surcharges imposed or to...
  • Section 10089.52.
    Nothing in Section 10089.50 or 10089.51 is intended to limit the applicability to the authority of any provision of Section 5450 or subdivision (c) of...
  • Section 10089.53.
    (a) Any insurer that withdraws from the authority under Section 10089.19 while bonds or other debt is outstanding shall impose annually a premium surcharge on each...
  • Section 10089.54.
    (a) Unless authorized by a statute enacted subsequent to the effective date of this section, the authority shall cease writing new earthquake insurance policies 180 days...

Last modified: October 22, 2018