View this article online: https://www.insurancejournal.com/news/west/2020/04/29/566785.htm
The California Catastrophe Response Council, which oversees the Wildfire Fund, has formally named the California Earthquake Authority the fund’s administrator.
The Wildfire Fund was established by the California Legislature, under Assembly Bill 1054 and Assembly Bill 111, and was signed into law by Gov. Gavin Newsom on July 12, 2019. At that time, CEA was designated the fund’s interim administrator until the nine-member California Catastrophe Response Council could be formed and appoint an administrator.
During the new council’s quarterly meeting on April 23 the council evaluated the potential options. It also reviewed materials about CEA’s operating structure and more than 23 years of experience before making its decision in a unanimous vote.
“CEA readily accepts the role of administrator. We’re proud of the work we’ve been doing since the Wildfire Fund was established last summer, and we’re pleased to have the confidence of the California Catastrophe Response Council,” CEA CEO Glenn Pomeroy said in a statement.
Assets in the CEA fund for residential earthquake insurance policyholders are segregated and separately managed and maintained from assets in the Wildfire Fund, which was established to provide a source of money to pay or reimburse eligible claims arising from a covered wildfire caused by a participating utility company. All costs and expenses incurred by CEA to administer the Wildfire Fund are allocated to and paid from the Wildfire Fund.
The CEA is a not-for-profit, privately funded, publicly managed organization that provides residential earthquake insurance.
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