Quake Insurance Coverage for Homeowners

* “Insurers Are Finding a Friend in Quackenbush” (editorial, Aug. 2) mentions that there is more than one way to approach the earthquake insurance problem. That is a given.

The Northridge earthquake put 20th Century Fire and Casualty out of business. There is no actuarial method of determining an adequate premium for earthquake insurance as we know it today. Therefore, any company that sells earthquake policies could be put out of business with the next major earthquake.

Does it make sense to say the insurance companies have something to gain with the creation of the California Earthquake Authority, when in reality they just want to be able to stay in business after the next earthquake hits?

CHARLES MARSHALL

Huntington Beach

* CNA Insurance Co. has notified us it will not renew our homeowners insurance and our broker tells us we better look on our own. This after approximately seven years of no claims and prompt payment of annual premiums, the last of which was almost $2,000.

The excuse given was that our house is 1,500 feet from the ocean and built on a slope; CNA knew this when it sold us the policy, so we can only speculate CNA has a hidden agenda and that we and others similarly situated are only pawns in a bigger game involving Insurance Commissioner Chuck Quackenbush, insurers and the Legislature.

This problem should be addressed immediately by our elected body and in such a manner that it protects the residents from the high-handed tactics exhibited by some insurance companies.

LYLE CRIPE

Manhattan Beach

* Re “Insurers Hatch Another Scheme,” Commentary, Aug. 5:

I would like to point out a simple but colossal flaw in Harvey Rosenfield’s logic concerning the California Earthquake Authority being a great deal for insurers and a bad one for consumers. If his argument were true, then all home insurers would be clamoring to join. Yet, only one of the 250 members in my insurance trade association has indicated any interest in joining the CEA. The rest want no part of the CEA but recognize its central role in bringing a few large carriers back into the homeowners market.

In fact, the rest of my carriers expect to compete with the CEA and have been encouraged to do so by the insurance commissioner and the Legislature.

PETER GORMAN

Associate Vice President

Alliance of American Insurers

San Francisco