Sacramento

Earthquake Mediation Bill: The California Assembly opens hearings Tuesday on legislation to help earthquake victims settle disputes with their insurers without resorting to litigation. The bill, SB 882, would create a three-year pilot program giving residential earthquake victims the right to present their disputes to an independent arbitrator. An insurance company would be required to participate and bear the cost of the arbitration, up to $400. State Insurance Department officials say that about 500 complaints arising from the Jan. 17, 1994, Northridge earthquake remain unresolved, with dozens of new complaints being filed monthly. The legislation is authored by Sen. Herschel Rosenthal (D-Van Nuys) and co-sponsored by the Insurance Department, Consumers Union and Allstate Insurance Co. The hearings begin at 9 a.m. before the Senate Insurance Committee in the Capitol.