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Earthquake Authority in middle of fight over new
funding

Silicon Valley / San Jose Business Journal - August
24, 2007

by Kelly
Johnson

The California Earthquake Authority and its participating insurers have
agreed to create a new layer of financing for the state-run insurance
pool, but falls about $1 billion short of making up for another layer of
funding that expires at the end of next year.

Also, there are some big "ifs" related to the agreement designed to
bolster the authority's claims-paying capacity. While the CEA's governing
board approved the plan by a 2-1 vote last week, the Legislature and
governor also must come on board, through legislation. A competing bill
could surface that would ask legislators to force insurers to maintain the
existing, much larger layer of financing, even though that responsibility
is supposed to sunset.

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KELLY JOHNSON writes for the Sacramento Business Journal, an
affiliated publication. Reach her at 916-558-7860.

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