California Insurance Code & EthicsQuestion 45 of 215
When an insurer offers a new or renewal residential property policy, California law requires it to offer earthquake coverage through:
a.An automatic endorsement included at no charge
b.A separate mandatory offer of earthquake insurance
c.A surplus lines broker only
d.The federal flood insurance program
Explanation
Section 10086 of the Mandatory Earthquake Insurance Offer Law requires every residential property insurer to offer earthquake coverage at the time it issues or renews a homeowners policy. The offer must be written and may be accepted or declined; coverage is not bundled automatically, and surplus lines and the federal NFIP do not satisfy the requirement.
Law Reference: Cal. Ins. Code §10086Practice all 215 questions free — no signup required.
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