2005
Insurance Reference Manual
Personal Insurance Federation of California Insurance Reference Book
Foreword
Insurance touches the lives of every Californian everyday. As California's Governor Arnold Schwarzenegger begins his second year, his goals for 2005 are numerous, but the number one issue is restructuring California government. He has called for a vast reduction in spending without offering or raising any taxes.
Economic recovery for California won't be easy, but the insurance industry stands ready to help. With more than $80 billion in premiums collected annually and investments in California that exceed $450 billion, insurance has and will continue to be, a key player in the economic growth of the state.
The insurance industry stands prepared to help in all situations.
Earthquakes. The Northridge quake struck in 1994 causing more than $15.3 billion in insurance losses. The Napa quake followed in 2002 and the Paso Robles quake occurred in 2003 claiming two lives. Representatives of the insurance industry were on the scene immediately during and following of each of these disasters to assist policyholders in their time of need.
Fires. Fueled by the Santa Ana winds, a major conflagration began in San Bernardino and roared through San Diego in late 2003 killing 25, burning more than 3,700 homes and countless structures as well as destroying more than 740,000 acres of land. Again, the insurance industry responded to this crisis. Thus far, the insurance claim costs for this fire have exceed $2.03 billion.
Homeowners' and Auto Insurance. Every year the insurance industry in California handles millions of homeowners and automobile insurance claims. Whether it's a kitchen fire or a fender-bender, the insurance industry can always be counted on to respond.
As California's economy improves, the California insurance industry will continue its pursuit to ensure that there will always be a financially viable marketplace to handle all insurance claims, whether they are catastrophic or normal, both now and in the future.
The PIFC Reference Book is dedicated to increasing the understanding of insurance, its function and its limitations. We encourage legislators, executive branch officials, the media and other stakeholders to utilize its contents when seeking information about the California insurance industry. The book is also available on PIFC's website at www.pifc.org.
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