Quake Insurance

* Re “Insurers Seek to Further Curb Quake Coverage,” May 15:

Your assertion that my homeowners insurance “de-linkage” legislation, Senate Bill 58, would make it easier for insurers to refuse to renew policies for existing earthquake policyholders could not be further from the truth. In fact, SB 58 provides far greater legal protections for earthquake policyholders than they enjoy under current state law.

Specifically, my bill limits an insurers’ ability to non-renew existing earthquake policies by permitting such non-renewals only in the following circumstances: 1) the policyholder terminates the policy; 2) maintaining the policy would threaten the solvency of the insurer; 3) the policyholder fails to pay his premium or commits insurance fraud; 4) the non-renewal is based on sound underwriting principles such as a change in the conditions of the structure which is being insured (i.e., building requirements have changed and it would no longer be safe to rebuild); and, 5) the insurance commissioner certifies that the insurer is unable to obtain reinsurance.

These new consumer protections against the non-renewal of earthquake insurance policies are a major reason why SB 58 has received strong bipartisan support in the state Senate.

JOHN R. LEWIS

State Senate, R-Orange