Which statement about the California Earthquake Authority (CEA) is correct?
Explanation
The CEA, established under Cal. Ins. Code §10089.5 et seq., is a publicly managed but privately financed entity. Participating residential insurers issue CEA earthquake policies to their own customers, who can choose CEA coverage instead of the insurer's own. The CEA is neither a mutual insurer nor a direct-to-public carrier, and it covers only policies written by participating insurers.
Law Reference: Cal. Ins. Code §10089.5+ (CEA)This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Under California Civil Code §3287, what statutory rate of interest accrues on amounts wrongfully withheld from a claimant once the amount becomes certain?
- How many days written notice must a California private passenger auto insurer give before non-renewing a policy?
- A California private passenger auto policyholder wants to reject uninsured motorist (UM) coverage. The rejection is effective only if:
- Which best describes the California FAIR Plan?
- Under California's Auto Body Repair Consumer Bill of Rights, which practice is prohibited?
- The California Low Cost Automobile Insurance Program (CLCA) is designed primarily for which group of drivers?
Last reviewed: · editorial process