The California Earthquake Authority (CEA) was created by state law (§10089.6) under the authority of the Insurance Commissioner. It describes itself as a not-for-profit, publicly managed, privately funded entity. Its insurance authority is limited to selling residential earthquake policies.

Publicly managed: under §10089.7, the CEA's three-member governing board is the Governor, the Treasurer and the Insurance Commissioner, each of whom may name a designee. The Speaker of the Assembly and the Senate Rules chair serve only as nonvoting, ex officio members.

Who can buy: under §10089.26, the CEA issues policies to an owner of qualifying residential property as long as the owner has a residential property policy from a participating insurer, meaning an insurer that elected to join. A homeowner whose insurer did not join cannot get a CEA policy through it. That insurer still owes her an earthquake offer, but it may meet that duty another way.

Who sells and services: under §10089.28(a), the CEA writes the policy, but the participating insurer that writes the underlying residential policy markets it and services the policyholder, and is reasonably compensated for doing so. The CEA supplies applications and forms and keeps the records; it does not run its own retail sales force.