Quake Insurance Legislation a Disaster
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The story about Paul Masi and earthquake insurance should be required reading for all members of the Legislature. The disaster they created by their new legislation on earthquake insurance will exceed any actual damage from the next major earthquake.
The problems will be far worse than what was described in the article. If an earthquake depletes the state’s new earthquake authority’s fund, policy holders will have to settle claims without any insurance company or the authority being put into default. Further, policy holders without any losses can then be assessed to cover the shortfall if the fund cannot even pay that reduced amount.
We buy insurance to reduce our risks. The new law on earthquake insurance actually increases homeowners’ risks while making the insurance industry risk-free with respect to earthquakes. When my current policy expires, I will likely not renew it.
DAVID E. ROSS, Oak Park
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