California Insurance

Direction: What is the assessment of damage caused by the earthquake in California exceeded one billion dollars, hundreds of insurance claims adjustment devices, settled a day yesterd to assess the devastation and pay claims.

What is the assessment of damage caused by the earthquake in California exceeded one billion dollars, hundreds of insurance claims adjustment devices, settled a day yesterd to assess the devastation and pay claims.

Jeff Beyer, spokesman for the Farmers Group of Los Angeles, the second insurer of automobiles and homes in California after a car Land Farm Mutual Insurance Company, said:”Our priority now is to right the man in form as quickly as we do. ”

But always and forever, insurers, said the disaster was so widespread and communication was so poor that it was difficult to assess losses. It might at least two weeks before, there is a clear picture of losses.

Owners of vehicles were heavily damaged or broken is expected that little problem, collect their money, because most of them is the coverage pay for such damage. Nearly 90 percent of farm state politics, holders of such coverage.

But only about 20 percent of homeowners for earthquakes are insured damaged. The cost of such a report on a house in masonry with a value of $ 500000 may be above $ 6000 per year, the cost of coverage in homes for executives, for whom the greatest probability that tremor, it is as little as $ 630 per year for a $ 500000 home. Estimates of up to 3 billion dollars of USA

In total, the Bay Area damage was estimated at 1 billion dollars by David Crocker, Area Manager for the Western Insurance Information Center in Tustin, California, far south of the quake center. For a grobe”erraten,”he said, he doubled the $ 553 million in damages in the area of San Fernando earthquake of 1971. The earthquake in the Los Angeles area registered 6.4 on the Richter scale, the quake registered 6.9 on Tuesday.

Orin Kramer, a consultant from Manhattan and associate director of the White House domestic policy staff of President Jimmy Carter, the estimated amount of damage between $ 1 billion and $ 3 billion.

Insurers could widespread losses across the industry. The Fireman’s Fund Corporation, which he could not lose more than $ 50 million after taxes and after the company, reinsurers, buy a portion of the risk on the major policies of the insurer of origin. Other major insurers in the Bay Area, the American International Group, Aetna Life and Casualty Company, Chubb Corporation, CIGNA Corporation, the group Continental, CNA Financial Corporation, Hartford Fire Insurance Company and hospitality and insurance life. Many have feared that serious claims. Cigna lost $ 90 million in Hurricane Hugo said, it is feared that the losses, but was speculating. Insurers’ stocks gain

Despite losses of the insurer face, the scholarship covers civil liability insurance positive today, the prospect of the high probability that it might be time for companies on the demand increases. Among insurance stocks that were American International Group, the biggest commercial insurer in the country, the General Re Corporation, the largest nation reinsurers and Marsh & McLennan Companies, the largest insurance broker. Maurice R. Greenberg, president of the American International, said, insurance, price cycles. The cycle sweet from my point of view and insurance firm, prices will have to increase.

Mr. Greenberg added: If this earthquake was 8.2 on the Richter scale, it could not insurance today.

For almost the past ten years, he said, he opted for reinsurance, the federal government because we are sure, reinsurers is it financially.

A major problem for insurers is at home, where all people come to San Francisco. L. Ron Arnold, Vice President of State Farm in Bloomington, Ill., said the company had 100 people with experience of earthquakes ready to move when we hotel and motel rooms.