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Insurers Sued Over Northridge Quake Claims

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Times Staff Reports

More than 40 insurance companies are being sued for allegedly neglecting to tell policyholders they have a 12-month extension to file claims stemming from the 1994 Northridge earthquake.

Community Assisting Recovery, an organization focused on helping disaster victims, said Tuesday it filed suit late Friday in Superior Court against insurance companies including 21st Century, Allstate and Farmers.

A state law that took effect Jan. 1 gives many policyholders unhappy with their settlements until the end of the year to revive their damage claims or sue.

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That law does not specifically call on insurers to publicize the extension.

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