1

Request for Proposals for CEA Strategic Plan Consulting Services

(RFP #06-20) July 27, 2020

5

Additional information and a list of participating insurers is available at: www.EarthquakeAuthority.com.

B. How CEA Was Formed; Governance

Selling homeowners insurance in California carries an obligation to also offer earthquake insurance. Following the unprecedented losses from the 1994 Northridge earthquake, many insurance companies either ceased or severely restricted the sale of new homeowner earthquake insurance policies in California. In response, the California Legislature created the CEA to provide earthquake coverage throughout California. CEA began writing residential earthquake insurance effective December 1, 1996.

Overseeing CEA is a Governing Board composed of the Governor, Treasurer, and Insurance Commissioner as voting members; the Speaker of the Assembly and President Pro- Tempore of the Senate serve as non-voting members. CEA’s statute also created an Advisory Panel made up of consumer and insurance-industry representatives. The Advisory Panel advises the Governing Board and CEA management on various issues related to CEA’s earthquake insurance business.