Insurers must OFFER earthquake coverage with residential property policies (§10081); buying is optional.

No acceptance within 30 days of mailing = presumed declined; re-offer every other year (§10083).

Three offer methods: direct, affiliated insurer, or agent/broker with a nonaffiliated insurer (§10084).

Offer applies to owned structures of up to 4 units, condo units, mobilehomes and tenants' contents (§10087).

Minimum offer: dwelling + contents + at least $1,500 additional living expense (§10089).

Pools and landscaping are left out of the minimum dwelling coverage.

CEA = publicly managed, not-for-profit, privately funded; residential earthquake policies only.

Board: Governor, Treasurer, Insurance Commissioner (§10089.7).

Need a policy from a participating insurer, which markets and services the CEA policy (§10089.26, §10089.28).

CEA policies are NOT covered by CIGA.

If resources run short, the CEA may reduce payments or pay in installments.

Possible surcharge: up to an additional 20% of the annual premium.

Earthquake deductible = % of the coverage amount, not % of the loss.

Minimum offer: deductible no more than 15% of the dwelling coverage (§10089(b)).

Higher deductible = lower premium, more paid out of pocket.

FAIR Plan = market of last resort for basic property insurance (§10090).

Membership is mandatory for licensed insurers writing basic property insurance (§10095(a)); not a state agency.

The clearinghouse (§10095(i)) lets admitted insurers offer policies to FAIR Plan policyholders.

Two areas: urban (inner city) and brush fire; since Northridge (1994) the whole state is designated.

Eligible: anyone with an insurable interest who, after diligent effort, cannot get basic property insurance (§10093(a)).

Tenants can qualify; shopping for a lower price does not.

Basic property insurance = direct loss at a fixed location from standard fire policy and extended coverage perils, plus vandalism and malicious mischief.

Leaves out autos and commercial agricultural commodities or livestock; includes mobilehomes.

No personal liability: buy it from a private insurer.

Outline FAIR Plan perils: fire or lightning, explosion, smoke, windstorm or hail, vehicles, vandalism/malicious mischief.

DIC from a private insurer adds water damage, theft and liability; FAIR Plan + DIC is close to a homeowners policy.

The FAIR Plan does not sell DIC policies.

Flood = general, temporary inundation of 2+ acres of normally dry land or 2+ properties.

Mudflow counts as flood; landslide and slope failure do not.

Homeowners policies generally exclude flood.

Only participating communities are eligible; renters can insure contents.

No additional living expense or loss of use under the SFIP.

Proof of loss within 60 days; suit within 1 year of written denial, in U.S. District Court.

Emergency = initial phase, limited amounts; Regular = FIRM in effect, full limits.

Single-family building: $35,000 (Emergency) / $250,000 (Regular); Regular contents up to $100,000.

Required amount = lesser of loan balance or program maximum; force-placed after 45 days.

Any licensed P&C agent can sell NFIP policies, through a WYO insurer or NFIP Direct.

Agents have no binding authority; oral binders have no effect; usual 30-day wait.

Flood training: one-time, three-hour, FEMA-approved course.