CA AJR6

Urges the President and Congress of the United States to enact federal legislation establishing guarantees for post-earthquake financing by state-based earthquake insurance programs, specifically including the California Earthquake Authority (CEA).

Notes that only 12 percent of Californians with homeowners insurance also purchase earthquake insurance, citing high costs and high deductibles as key barriers to coverage.

Identifies that the CEA, operating since 1996, must maintain actuarially sound rates and build sufficient reserves to independently cover catastrophic earthquake losses, which keeps insurance premiums elevated.

Proposes that federal debt guarantees for post-event financing would strengthen the CEA's financial capacity and allow it to reduce pre-event insurance expenses and reinsurance costs.

Estimates that a federal partnership limited to prequalified, actuarially sound state earthquake programs would cost the federal government only $25 million over 10 years.