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Panel
OKs cut in insurance company backing for
earthquake coverage

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Associated Press - August 30, 2007 6:24
PM ET

SACRAMENTO (AP) - An Assembly committee has
approved a bill that could shift more of the
cost of providing earthquake insurance in
California from insurers to homeowners.

The legislation by Senator Mike Machado
(Ma-SHA-do) of Linden would replace an expiring
requirement that insurers provide $2.2 billion
to help underwrite the California Earthquake
Authority with a $1.2 billion, 12-year
commitment.

The bill was approved today by the
Appropriations Committee although some committee
members expressed reservations about the change
and indicated they might oppose it when the bill
comes up for a vote in the full Assembly.

Consumer advocates predicted the change would
force California's largest provider of
earthquake insurance to raise its rates.

Copyright 2007 The
Associated Press. All rights reserved. This
material may not be published, broadcast,
rewritten or redistributed.

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