RESOURCES

The California Earthquake Authority

Topics: Emergency Management,

This discussion paper by Daniel Marshall, General Counsel of the California Earthquake Authority, discusses the factors that led to the creation of the California Earthquake Authority. In California, all insurers that offer homeowners insurance are required to also offer earthquake insurance. The economic damage from the 1994 Northridge Earthquake was was far greater than expected. As a result, many insurers refused to sell homeowners insurance in order to circumvent selling earthquake insurance. This paper outlines the steps that the California legislature took to address the market failure which ultimately resulted in the creation of the California Earthquake Authority.

View Source