What is a CEA policy?
In 1996, the California Legislature established the California Earthquake Authority (CEA) as a privately financed, publicly managed entity to help California residents protect themselves against earthquake loss. The CEA policy is written in an industry pool which in the event of a major earthquake is going to rely on a variety of financial resources to compensate insured individuals for losses bonds, reinsurance, assessments on insurers, as well as premiums from, and assessments against, policyholders. If the amount authorized by the Legislature in creating this CEA pool is not sufficient to pay all losses, policyholders could receive only a pro-rata portion of their loss in the event of a large earthquake. Western Mutual does not participate in the CEA pool. We offer private earthquake insurance to our homeowners policyholders, which is backed, among others, by Maiden RE, an AM Best rated ‘EXCELLENT’ reinsurance company.
