Calif. Bill Extends Quake Claims; Heads to Governor’s Desk

A bill that could give thousands of Northridge earthquake victims another chance to file damage claims is on its way to Calif. Gov. Gray Davis. The bill, approved 21-7 Friday by the state’s Senate, was prompted by the Quackenbush scandal earlier this year.

Quackenbush allowed numerous insurers accused of mishandling the 1994 earthquake claims to escape paying potentially billions of dollars in fines by giving money to a fund he created. His department then dropped its claims violation investigations.

Gov. Davis has not decided whether he will sign the bill, which will give many property owners who say their insurance companies have not compensated them for the earthquake damage another year to file claims. The bill would not, however, cover property owners who did not contact their insurers about potential quake damage before this year.

Topics California Claims