Judge Rejects Earthquake Insurance Rates

An administrative law judge has rejected the insurance rates for residential quake coverage submitted by the California Earthquake Authority. Judge Andrea Biren rejected the rates, questioning the accuracy of computer models used to estimate average annual losses. In response to the decision, which he can challenge, state Insurance Commissioner Chuck Quackenbush requested public comment on Biren’s ruling. The Proposition 103 Enforcement Project consumer group, which was involved in the suit that challenged the rates, warned that consumers could continue to pay higher than justified rates if Quackenbush goes against Biren’s decision. The public has until March 23 to submit written comments on the judge’s ruling.