Homeowners InsuranceQuestion 113 of 158
The California Earthquake Authority (CEA) is BEST described as:
a.A privately funded, publicly managed entity that writes most California earthquake policies
b.A division of the federal government created by FEMA
c.A free state-funded program for low-income homeowners
d.A private mutual insurance company owned by policyholders
Explanation
The CEA is a privately funded, publicly managed entity created after the 1994 Northridge earthquake. It writes the majority of California residential earthquake policies through its participating insurers, with high deductibles and limited sublimits on contents and loss of use.
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