California Insurance Code

§ 10089.40

INS § 10089.40 Effective Oct 12, 2001Div. 2 · Part 1 · Ch. 8.6

Statute text

(a)Rates established by the authority shall be actuarially sound so as to not be excessive, inadequate, or unfairly discriminatory. Rates shall be established based on the best available scientific information for assessing the risk of earthquake frequency, severity, and loss. Rates shall be equivalent for equivalent risks. Factors the board shall consider in adopting rates include, but are not limited to, the following:

(1)Location of the insured property and its proximity to earthquake faults and to other geological factors that affect the risk of earthquake or damage from earthquake.

(2)The soil type on which the insured dwelling is built.

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Legislative history

Amended by Stats. 2001, Ch. 745, Sec. 154. Effective October 12, 2001.