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February 8, 1994
BULLETIN #627
RE: EMERGENCY DIRECTIVE REGARDING POLICIES IN AREAS AFFECTED BY JANUARY 17,1994 EARTHQUAKE

It is extremely important that you read this document, and familiarize yourself with the information contained therein.

Association Counsel LeBoeuf, Lamb, Greene & MacRae have kindly offered to answer any questions or provide additional information; please call John Finston, Thomas McDonald or Kenneth Schnoll at (415) 951-1100.

Assistant Manager
JSP/Ijl
Enclosure
EBOEUF, LAMB, GREENE & MACRAE
A PARTNERSHIP INCLUDING PROFESSIONAL. CORPORATIONS
ONE EMBARCADERO CENTER
SAN FRANCISCO, CA 94111~-3619

February 8, 1994
FOR: our Clients
FROM: LeBoeuf, Lamb, Greene & MacRae
SUBJECT:Emergency Directive Regarding Policies in Areas Affected by January 17, 1994 Earthquake

On February 1, 1994, Insurance Commissioner John Garamendi announced that he has issued an emergency directive intended to protect persons affected by the January 17, 1994 Southern California earthquake from adverse action by their insurers. A copy of the emergency directive, which is addressed to all admitted insurers, the Surplus Lines Association, producer associations and other interested persons, is attached.

The emergency directive states that it applies to all classes of insurance (and to other contracts regulated under the Insurance Code) issued, delivered or covering risks in areas subject to the earthquake state of emergency. An attachment to the directive identifies the zip code areas within Los Angeles, Orange and Ventura counties covered by the directive. The directive:

  1. Extends until March 18, 1994 the time for an insured or claimant to perform any act with respect to a contract of insurance (other than communications regarding earthquake property damage claims) that was to occur on or after January 17, 1994.

  2. Prohibits: (a) the cancellation or nonrenewal of any insurance contract for nonpayment of premium between January 17 and March 18, 1994, (b) the issuance of a notice of cancellation until March 19, 1994 and (c) the cancellation or nonrenewal of a policy solely due to claims from the earthquake.

  3. Requires withdrawal and reissuance of notices of cancellation and nonrenewal mailed during the seven days before the earthquake, and makes any adverse action with respect to an insurance policy ineffective unless the insurer can demonstrate that the insured or claimant personally received prior notice of the proposed action. Our Clients
    February 8, 1994
    Page 2

  4. Makes an agent not liable to the insurer for premiums not collected from qualified persons between January 17 and March 18, 1994.

  5. Establishes detailed rules for policies financed by a premium finance lender.

  6. Persons outside the identified zip codes may qualify for relief under the directive upon presentation of evidence supporting their claims for relief.

  7. If you have any questions or would like additional information, please call John Finston, Thomas McDonald or Kenneth Schnoll at (415) 951-1100.

STATE OF CALIFORNIA
DEPARTMENT OF INSURANCE
45 FREMONT STREET, 23RD FLOOR
SAN FRANCISCO# CA 9410S

January 31, 1994
TO: All Insurers Admitted To Transact Business in the State of California, The Surplus Lines Association, Producer Associations, and Other Interested Persons

FROM: John Garamendi Insurance Commissioner

  1. This Emergency Directive applies to all insurance policies or contracts that provide coverage for any or all insurance classes referenced in California Insurance Code Section 100 and to other contracts which are subject to regulation under the California Insurance code issued, delivered, or covering risks located, in areas subject to a state of emergency proclaimed due to the 1/17/94 Southern California Earthquake.

    Reference herein to "Policy" or "contract of insurance" includes all agreements regulated under the Insurance Code.

  2. The primary purpose for this Emergency Directive is to provide temporary and emergency relief to persons located in areas subject to the above-referenced state of emergency who have been displaced by the loss of their homes, living quarters or other premises, or damage thereto, which has caused them to reside elsewhere on a temporary basis. 'This Directive is also intended to provide relief to persons who have become temporarily unemployed as the result of the 1/17/94 Southern California Earthquake. Specifically, those persons residing in the counties in the zip codes listed in attachment A, are presumed to be qualified under this section.

    Residents or businesses of other zip codes may also qualify upon presentation of evidence which supports their claims to relief under this section.

  3. Whenever any policy provision or law imposes upon an insured or claimant a time period for performing any act or transmitting any information or funds with respect to a contract of insurance (other than communications with respect to property damage claims arising from the earthquake), and such action was to have been taken on or after 1/17/94, the end of that time period shall be extended to the close of business on 3/18/94. No penalty or other interest provisions should accrue as the result of the extensions required herein.

  4. Except as provided in Section (5) below, no insurer or other regulated entity shall between 1/17/94 and 3/18/94 cancel or nonrenew a policy or contract of insurance, that covers a qualified person in the referenced areas, for nonpayment of premium. Additionally, until 3/19/94 no insurer or other regulated entity shall issue a notice of cancellation or nonrenewal for nonpayment of premium which was due on 1/17/94 or becomes due thereafter. Furthermore, a policy may not be canceled or nonrenewed solely because of claims resulting from the Southern California Earthquake.

  5. As for policies and contracts for which notices of cancellation or nonrenewal were mailed during the seven days preceding 1/17/94, all such notices shall be withdrawn and reissued to insureds in areas subject to a state of emergency. Any notice period prescribed by law or contract shall begin to run from the date the notice was received by the insured. No cancellation, nonrenewal or other limitation or adverse action with respect to an insurance policy shall be effective, unless the insurer or other regulated entity can demonstrate that the insured or claimant has personally received prior notice of the proposed action.

  6. No agent shall be liable to an insurer for premiums not actually collected from qualified persons between 1/17/94 and 3/18/94.

  7. From the issuance date of this Directive, if the contract of insurance was financed by a premium finance lender, the following shall apply:
    (a)Insurers that receive notice of intent to cancel and/or notice of cancellation under premium finance agreements shall, immediately upon receipt thereof, mail to the insured a notice that prominently sets forth the following statement:
    "If you have been displaced through the loss of your home or damage to your home which has caused you to reside elsewhere on a temporary basis, or if you have temporarily become unemployed due to the destruction caused by the 1/17/94 Southern California Earthquake please contact your premium finance lender at once, to seek an extension of time to pay charges that are past due. At the direction of the Insurance Commissioner, this insurer will process cancellation requests, but hold all premium refunds in connection with this policy until 3/18/94 to enable rescission of the cancellation notice on account of the extraordinary circumstances attributable to the earthquake.

    "If you decide that you no longer need or desire to keep the coverage provided by the insurance policy financed by your premium finance lender, please contact us at once so that we may instruct you on how to effect cancellation."

    (b) In addition, the insurer shall be responsible for obtaining proof that the insured received such notice. Proof of receipt may be established through mailing by certified mail, return receipt requested, or through any other method that establishes actual receipt by the insured.

    ( c )Upon receipt of a notice of cancellation from the premium finance lender, the insurer will process the cancellation and confirmation from the insured that cancellation is desired, in accordance with current law.

    (d) The insurer shall hold all refunds through 3/18/94 in accordance with the following:

    i. If the insurer receives notice of a claim that occurred on or before 3/18/94 on the canceled policy, and the policy is reinstated as provided in subsection ii below, the time shall be extended for that claim. No claim received under a policy for which a cancellation notice was received need be processed until the policy is reinstated.

    ii. If the insurer receives a request for reinstatement from the premium finance lender, the insurer shall immediately reinstate the policy with no lapse in coverage.

    iii. Late charges should not be assessed for any insured who qualifies for protection under this Emergency Directive in as much as the average was due to circumstances beyond the insured's control.

    iv. If the insurer has not received a reinstatement request from the premium finance lender pursuant to subsection ii above, the insurer shall issue its return premium checks to the premium finance lender no later than 3/21/94 (the next business day following 3/18/94), based upon the lender's requested cancellation date.

    DATED: JAN 31, 1994
    JOHN GARAMENDI
    Insurance Commissioner

    ATTACHMENT "A" TO EMERGENCY DIRECTIVE



    LAC 90001 Los Angeles LAC 90062 Los Angeles
    LAC 90002 Los Angeles LAC 90063 Los Angeles
    LAC 90003 Los Angeles LAC 90064 Los Angeles
    LAC 90004 Los Angeles LAC 90065 Los Angeles
    LAC 90005 Los Angeles LAC 90066 Los Angeles
    LAC 90006 Los Angeles LAC 90067 Los Angeles
    LAC 90007 Los Angeles LAC 90068 Los Angeles
    LAC 90008 Los Angeles LAC 90069 Los Angeles
    LAC 90009 Los Angeles LAC 90070 Ambassador
    LAC 90009 Los Angeles LAC 90070 Los Angeles
    LAC 90009 LAC 90071 Los Angeles
    LAC 90010 Los Angeles LAC 90072 Los Angeles
    LAC 90011 Los Angeles LAC 90072 Santa Western
    LAC 90012 L03 Angeles LAC 90073 Los Angeles
    LAC 90013 Los Angeles LAC 90073 Veterans Administration
    LAC 90014 L03 Angeles LAC 90074 Bank of America
    LAC 90015 Los Angeles LAC 90075 Los Angeles
    LAC 90016 L03 Angeles LAC 90076 Los Angeles
    LAC 90017 Los Angeles LAC 90077 Los Angeles
    LAC 90018 Los Angeles LAC 90078 Los Angeles
    LAC 90019 L03 Angeles LAC 90079 Los Angeles
    LAC 90020 Los Angeles LAC 90079 Textile Boxes
    LAC 90021 L03 Angeles LAC 90080 Los Angeles
    LAC 90022 Los Angeles LAC 90082 Los Angeles
    LAC 90023 L03 Angeles LAC 90083 Los Angeles
    LAC 90024 Los Angeles LAC 90084 First Interstate Bank
    LAC 90025 L03 Angeles LAC 90086 Los Angeles
    LAC 90026 Los Angeles LAC 90087 Los Angeles
    LAC 90027 Los Angeles LAC 90088 lst Interstate Bank
    LAC 90028 Los Angeles LAC 90089 University of So. Ca
    LAC 90029 Los Angeles LAC 90091 Commerce
    LAC 90030 Los Angeles LAC 90091 Commerce Boxes
    LAC 90031 Los Angeles LAC 90091 Commerce Contract Sta
    LAC 90032 Los Angeles LAC 90091 Los Angeles
    LAC 90033 Los Angeles LAC 90093 Los Angeles
    LAC 90034 Los Angeles LAC 90094 L03 Angeles
    LAC 90035 Los Angeles LAC 90094 Playa Vista
    LAC 90036 Los Angeles LAC 90096 Los Angeles
    LAC 90037 Los Angeles LAC 90097 Los Angeles
    LAC 90038 Los Angeles LAC 90099 Bar Code Term Annex
    LAC 90039 Los Angeles LAC 90099 Los Angeles
    LAC 90040 Los Angeles LAC 90201 Bell
    LAC 90041 Los Angeles LAC 90209 Beverly Hills
    LAC 90042 Los Angeles LAC 90210 Beverly Hills
    LAC 90043 Los Angeles LAC 90211 Beverly Hills
    LAC 90044 Los Angeles LAC 90212 Beverly Hills
    LAC 90045 Los Angeles LAC 90213 Beverly Hills
    LAC 90046 Los Angeles LAC 90220 Compton
    LAC 90047 Los Angeles LAC 90221 Compton
    LAC 90048 Los Angeles LAC 90222 Compton
    LAC 90049 Los Angeles LAC 90223 Compton
    LAC 90050 Los Angeles LAC 90224 Compton
    LAC 90051 Los Angeles LAC 90224 Compton
    LAC 90052 Los Angeles LAC 90224 Rancho Dominguez
    LAC 90052 Postmaster LAC 90230 Culver City
    LAC 90053 Federal Boxes LAC 90231 Culver City
    LAC 90053 Los Angeles LAC 90232 Culver City
    LAC 90054 Los Angeles LAC 90233 Culver City
    LAC 90055 Los Angeles LAC 90239 Downey
    LAC 90056 Los Angeles LAC 90240 Downey
    LAC 90057 Los Angeles LAC 90241 Downey
    LAC 90058 Los Angeles LAC 90242 Downey
    LAC 90059 Los Angeles LAC 90245 El Segundo
    LAC 90060 Los Angeles LAC 90247 Gardena
    LAC 90061 Los Angeles LAC 90248 Gardena

    LAC 90249 Gardena LAC 90606 Santa Fe Springs
    LAC 90250 Hawthorne LAC 90607 Whittier
    LAC 90251 Hawthorne LAC 90608 Whittier
    LAC 90254 Hermosa Beach LAC 90609 Whittier
    LAC 90255 Huntington Park LAC 90610 Los Nietos
    LAC 90260 Lawndale LAC 90610 Whittier
    LAC 90261 Lawndale LAC 90612 American SavingsLoan
    LAC 90262 Lynwood LAC 90631 La Habra
    LAC 90265 Malibu LAC 90637 La Mirada
    LAC 90266 Manhattan
    Beach LAC 90638 La Mirada
    LAC 90270 Bell LAC 90639 Biola University
    LAC 90272 Pacific
    Palisades LAC 90640 Montebello
    LAC 90274 Palos Verdes
    Peninsula LAC 90650 Norwalk
    LAC 90277 Redondo Beach LAC 90651 Norwalk
    LAC 90278 Redondo Beach LAC 90652 Norwalk
    LAC 90280 South Gate LAC 90659 Montgomery Ward
    LAC 90290 Topanga LAC 90660 Pico Rivera
    LAC 90291 Venice LAC 90661 Pico Rivera
    LAC 90292 Venice LAC 90662 Pico Rivera
    LAC 90293 Venice LAC 90665 Caseys-Carnation
    LAC 90294 Venice LAC 90670 Santa Fe Springs
    LAC 90295 Marina Del Rey LAC 90701 Artesia
    LAC 90295 Venice LAC 90702 Artesia
    LAC 90296 Playa Del Rey LAC 90703 Artesia
    LAC 90296 Venice LAC 90703 Cerritos
    LAC 90301 Inglewood LAC 90704 Avalon
    LAC 90302 Inglewood LAC 90706 Bellflower
    LAC 90303 Inglewood LAC 90707 Bellflower
    LAC 90304 Inglewood LAC 90710 Harbor City
    LAC 90305 Inglewood LAC 90711 Lakewood
    LAC 90306 Inglewood LAC 90712 Lakewood
    LAC 90307 Inglewood LAC 90713 Lakewood
    LAC 90308 Inglewood LAC 90714 Lakewood
    LAC 90309 Inglewood LAC 90715 Lakewood
    LAC 90310 Inglewood LAC 90716 Lakewood
    LAC 90311 Inglewood LAC 90717 Lomita
    LAC 90312 Inglewood LAC 90723 Paramount
    LAC 90313 General
    Telephone LAC 90731 San Pedro
    LAC 90398 Electronic
    Data Systems LAC 90732 San Pedro
    LAC 90401 Santa Monica LAC 90733 San Pedro
    LAC 90402 Santa Monica LAC 90734 San Pedro
    LAC 90403 Santa Monica LAC 90744 Wilmington
    LAC 90404 Santa Monica LAC 90745 Long Beach
    LAC 90405 Santa Monica LAC 90746 Long Beach
    LAC 90406 Santa Monica LAC 90747 Cal State Univ DomHills
    LAC 90407 Santa Monica LAC 90748 Wilmington
    LAC 90408 Santa Monica LAC 90749 Carson
    LAC 90409 Santa Monica LAC 90749 Long Beach
    LAC 90410 Santa Monica LAC 90801 Long Beach
    LAC 90411 Santa Monica LAC 90802 Long Beach
    LAC 90501 Torrance LAC 90803 Long Beach
    LAC 90502 Torrance LAC 90804 Long Beach
    LAC 90503 Torrance LAC 90805 Long Beach
    LAC 90504 Torrance LAC 90806 Long Beach
    LAC 90505 Torrance LAC 90807 Long Beach
    LAC 90506 Torrance LAC 90808 Long Beach
    LAC 90507 Torrance LAC 90809 Long Beach
    LAC 90508 Torrance LAC 90810 Long Beach
    LAC 90509 Torrance LAC 90813 Long Beach
    LAC 90510 Torrance LAC 90814 Long Beach
    LAC 90601 Whittier LAC 90815 Long Beach
    LAC 90602 Whittier LAC 90822 Long Beach
    LAC 90603 Whittier LAC 90831 Long Beach
    LAC 90604 Whittier LAC 90832 Long Beach
    LAC 90605 Whittier LAC 90833 Long Beach

    2

    LAC 90834 Long Beach LAC 91128 Allstate Ins
    LAC 90835 Long Beach LAC 91129 Ambassador IC Foundation
    LAC 90840 Cal State Univ
    Long Beach LAC 91131 World vision
    LAC 90842 Department of
    Gas & Water International
    LAC 90844 Press Telegram LAC 91182 Fuller Theological Semin
    LAC 90845 Buffums LAC 91184 Tournament Of Roses A33o
    LAC 90846 McDonnell
    Douglas LAC 91185 Mellon Regional Lockbox
    LAC 90847 Aarp, LAC 91186 Sears Merchandise Group
    LAC 90848 AARP Pharmacy LAC 91187 Mellon Financial Service
    LAC 90853 Long Beach LAC 91188 Kaiser Foundation Health
    LAC 90888 Foundation
    Airborne Reli LAC 91189 First Chicago Service Co.
    LAC 91001 Altadena LAC 91191 World Vision Inc Brm
    LAC 91002 Altadena LAC 91201 Glendale
    LAC 91003 Altadena LAC 91202 Glendale
    LAC 91006 Arcadia LAC 91203 Glendale
    LAC 91007 Arcadia LAC 91204 Glendale
    LAC 91009 Duarte LAC 91205 Glendale
    LAC 91010 Duarte LAC 91206 Glendale
    LAC 91011 La Canada
    Flintridge LAC 91207 Glendale
    LAC 91012 Flintridge LAC 91208 Glendale
    LAC 91012 La Canada LAC 91209 Glendale
    LAC 91012 La Canada
    Flintridge LAC 91210 Glendale
    LAC 91016 Monrovia LAC 91210 Glendale Galleria
    LAC 91017 Monrovia LAC 91214 Glendale
    LAC 91020 Montrose LAC 91221 Glendale
    LAC 91021 Montrose LAC 91222 Glendale
    LAC 91023 La Canada LAC 91224 Glendale
    LAC 91023 La Canada
    Flintridge LAC 91224 La Crescenta
    LAC 91023 Mount Wilson LAC 91225 Glenddle
    LAC 91024 Sierra Madre LAC 91226 Glendale
    LAC 91025 Sierra Madre LAC 91301 Agoura Hills
    LAC 91030 South Pasadena LAC 91302 Woodland Hills
    LAC 91031 South Pasadena LAC 91303 Canoga Park
    LAC 91040 Sunland LAC 91304 Canoga Park
    LAC 91041 Sunland LAC 91305 Canoga Park
    LAC 91042 Tujunga LAC 91306 Canoga Park
    LAC 91043 Tujunga LAC 91307 Canoga Park
    LAC 91046 Verdugo City LAC 91308 Canoga Park
    LAC 91050 Sea Pacific
    Nat Bk LAC 91308 West Hills
    LAC 91051 Sea Pacific
    Nat Bk LAC 91309 Canoga Park
    LAC 91052 LA County
    Tax Collector LAC 91309 West Hills
    LAC 91066 Arcadia LAC 91310 Castaic
    LAC 91077 Arcadia LAC 91310 Santa Clarita
    LAC 91101 Pasadena LAC 91311 Chatsworth
    LAC 91102 Pasadena LAC 91316 Van Nuys
    LAC 91103 Pasadena LAC 91321 Santa Clarita
    LAC 91104 Pasadena LAC 91322 Newhall
    LAC 91105 Pasadena LAC 91322 Santa Clarita
    LAC 91106 Pasadena LAC 91324 Northridge
    LAC 91107 Pasadena LAC 91325 Northridge
    LAC 91108 Pasadena LAC 91326 Northridge
    LAC 91109 Pasadena LAC 91327 Northridge
    LAC 91114 Pasadena LAC 91327 Porter Ranch
    LAC 91115 Pasadena LAC 91328 Northridge
    LAC 91116 Pasadena LAC 91329 J B Lansing Co
    LAC 91117 Pasadena LAC 91330 California State Univers
    LAC 91118 Pasadena LAC 91331 Pacoima
    LAC 91118 San Marino LAC 91333 Pacoima
    LAC 91121 Avon Products LAC 91334 Arleta
    LAC 91122 Bank Americard LAC 91334 Pacoima
    LAC 91123 Ambassador
    College LAC 91335 Reseda
    LAC 91124 Ralph M
    Parsons Co LAC 91337 Reseda
    LAC 91125 Cal Tech LAC 91340 San Fernando
    LAC 91126 Cal Tech LAC 91341 San Fernando
    LAC 91127 Bank Amer
    Center LAC 91342 San Fernando


    LAC 91343 San Fernando LAC 91416 Van Nuys
    LAC 91344 San Fernando LAC 91423 Van Nuys
    LAC 91345 San Fernando LAC 91426 Encino
    LAC 91346 Mission Hills LAC 91426 Van Nuys
    LAC 91346 San Fernando LAC 91436 Van Nuys
    LAC 91350 Santa Clarita LAC 91461 Media Zip
    LAC 91351 Santa Clarita LAC 91462 Media Zip
    LAC 91352 Sun Valley LAC 91463 Media Zip
    LAC 91353 Sun valley LAC 91470 Blue Cross of So. Calif
    LAC 91354 Santa Clarita LAC 91494 Transamerica Insurance C
    LAC 91355 Santa Clarita LAC 91495 Multi-Million Sweep3take
    LAC 91356 Tarzana LAC 91496 US Purchasing Corp
    LAC 91357 Tarzana LAC 91497 Southern California Gas
    LAC 91359 Thousand Oaks LAC 91499 Business Reply
    LAC 91359 Westlake Village LAC 91501 Burbank
    LAC 91361 Thousand Oaks LAC 91502 Burbank
    LAC 91362 Thousand Oaks LAC 91503 Burbank
    LAC 91363 State Farm LAC 91504 Burbank
    LAC 91364 Woodland Hills LAC 91505 Burbank
    LAC 91365 Woodland Hills LAC 91506 Burbank
    LAC 91367 Woodland Hills LAC 91507 Burbank
    LAC 91370 Childhelp USA LAC 91508 Burbank
    LAC 91371 Pierce College LAC 91510 Burbank
    LAC 91372 Calabasas LAC 91520 Lockheed
    LAC 91372 Woodland Hills LAC 91521 Disney Productions
    LAC 91375 Tailer Life LAC 91522 Burbank Studios
    LAC 91376 Agoura LAC 91523 N B C
    LAC 91376 Agoura Hills LAC 91601 North Hollywood
    LAC 91380 Santa Clarita LAC 91602 North Hollywood
    LAC 91380 Valencia LAC 91603 North Hollywood
    LAC 91381 Santa Clarita LAC 91604 North Hollywood
    LAC 91384 Santa Clarita LAC 91605 Horth Hollywood
    LAC 91385 Magic mountain LAC 91606 North Hollywood
    LAC 91385 Santa Clarita LAC 91607 North Hollywood
    LAC 91385 Valencia LAC 91608 North Hollywood
    LAC 91386 Canyon Country LAC 91608 Universal City
    LAC 91386 Santa Clarita LAC 91609 North Hollywood
    LAC 91388 Pacific Tel LAC 91610 North Hollywood
    LAC 91392 San Fernando LAC 91610 Toluca Lake
    LAC 91392 Sylmar LAC 91611 US Purchasing Exchange
    LAC 91383 Lincoln Acres LAC 91612 US Purchasing Exchange
    LAC 91393 North Hills LAC 91614 North Hollywood
    LAC 91393 San Fernando LAC 91614 Studio City
    LAC 91393 Sepulveda LAC 91615 North Hollywood
    LAC 91394 Granada Hills LAC 91616 North Hollywood
    LAC 91394 San Fernando LAC 91617 North Hollywood
    LAC 91395 Mission Hills LAC 91617 Valley Village
    LAC 91395 San Fernando LAC 91702 Azusa
    LAC 91399 Lockheed Corp LAC 91706 Baldwin Park
    LAC 91401 Van Nuys LAC 91711 Claremont
    LAC 91402 Van Nuys LAC 91714 City of industry
    LAC 91403 Van Nuys LAC 91715 City of Industry
    LAC 91404 Van Nuys LAC 91716 City of Industry
    LAC 91405 Van Nuys LAC 91722 Covina
    LAC 91406 Van Nuys LAC 91723 Covina
    LAC 91407 Van Nuys LAC 91724 Covina
    LAC 91408 Van Nuys LAC 91731 El Monte
    LAC 91409 Van Nuys LAC 91732 El Monte
    LAC 91410 Van Nuys LAC 91733 El Monte
    LAC 91411 Van Nuys LAC 91734 El Monte
    LAC 91412 Panorama City LAC 91735 Wells Fargo Bank
    LAC 91412 Van Nuys LAC 91740 Glendora
    LAC 91413 Sherman Oaks LAC 91744 La Puente
    LAC 91413 Van Nuys LAC 91745 La Puente
    LAC 91416 Encino LAC 91746 La Puente

    4

    LAC 91747 La Puente ORG 90633 La Habra
    LAC 91748 La Puente ORG 90680 Stanton
    LAC 91749 La Puente ORG 90720 Los Alamitos
    LAC 91750 La Verne ORG 90721 Los Alamitos
    LAC 91754 Monterey Park ORG 90740 Seal Beach
    LAC 91756 Southern
    California Gas ORG 90742 Sunset Beach
    LAC 91765 Pomona ORG 90743 Surfside
    LAC 91766 Pomona ORG 92601 Atwood
    LAC 91767 Pomona ORG 92605 Center Ave
    LAC 91768 Pomona ORG 92605 Hunting-ton Beach
    LAC 91769 Pomona ORG 92607 Laguna Beach
    LAC 91770 Rosemead ORG 92607 Laguna Niguel
    LAC 91771 So Cal
    Edison Co ORG 92610 El Toro
    LAC 91772 So Cal
    Edison co ORG 92613 Orange
    LAC 91773 San Dimas ORG 92615 Huntington Beach
    LAC 91775 San Gabriel ORG 92619 Irvine
    LAC 91776 San Gabriel ORG 92621 Brea
    LAC 91778 San Gabriel ORG 92624 Dana Point
    LAC 91780 Temple City ORG 92625 Corona Del Mar
    LAC 91788 Walnut ORG 92626 Costa Mesa
    LAC 91789 Walnut ORG 92627 Costa Mesa
    LAC 91790 West Covina ORG 92628 Costa Mesa
    LAC 91791 West Covina ORG 92629 Dana Point
    LAC 91792 West Covina ORG 92630 El Toro
    LAC 91793 West Covina ORG 92631 Fullerton
    LAC 91795 Federal Home
    Loan Bank ORG 92632 Fullerton
    LAC 91799 Focus on
    The Family ORG 92633 Fullerton
    LAC 91801 Alhambra ORG 92634 Fullerton
    LAC 91802 Alhambra ORG 92635 Fullerton
    LAC 91803 Alhambra ORG 92640 Garden Grove
    LAC 91841 Carter Hawley
    Hale ORG 92641 Garden Grove
    LAC 91899 Alhambra ORG 92642 Garden Grove
    LAC 91899 City of
    Industry ORG 92643 Garden Grove
    LAC 92621 Brea ORG 92644 Garden Grove
    LAC 92622 Brea ORG 92645 Garden Grove
    LAC 93243 Lebec ORG 92646 Huntington Beach
    LAC 93510 Acton ORG 92647 Huntington Beach
    LAC 93523 Edwards ORG 92648 Huntington Beach
    LAC 93532 Lake Hughes ORG 92649 Huntington Beach
    LAC 93534 Lancaster ORG 92650 East Irvine
    LAC 93535 Lancaster ORG 92650 Irvine
    LAC 93536 Lancaster ORG 92651 Laguna Beach
    LAC 93539 Lancaster ORG 92652 Laguna Beach
    LAC 93543 Littlerock ORG 92652 Playa
    LAC 93544 Llano ORG 92653 Laguna Beach
    LAC 93550 Palmdale ORG 92654 Laguna Beach
    LAC 93551 Palmdale ORG 92654 Laguna Hills
    LAC 93552 Palmdale ORG 92655 Midway City
    LAC 93553 Pearblossom ORG 92656 Laguna Beach
    LAC 93560 Rosamond ORG 92657 Newport Beach
    LAC 93563 Pearblossom ORG 92658 Newport Beach
    LAC 93584 Lancaster ORG 92659 Newport Beach
    LAC 93586 Lancaster ORG 92660 Newport Beach
    LAC 93586 Quartz Hill ORG 92661 Newport Beach
    LAC 93590 Palmdale ORG 92662 Newport Beach
    LAC 93591 Palmdale ORG 92663 Newport Beach
    LAC 93599 Lockheed
    Advanced Dev Co ORG 92664 Orange
    ORG 90620 Buena Park ORG 92665 Orange
    ORG 90621 Buena Park ORG 92666 Orange
    ORG 90622 Buena Park ORG 92667 Orange
    ORG 90623 Buena Park ORG 92668 Orange
    ORG 90624 Buena Park ORG 92669 Orange
    ORG 90630 Cypress
    ORG 92670 Placentia
    ORG 90631 La Habra ORG 92672 San Clemente
    ORG 90632 La Habra ORG 92673 San Clemente

    5


    ORG 92675 San Juan
    Capistrano VEN 91301 Agoura Hills
    ORG 92676 Modjeska VEN 91304 Canoga Park
    ORG 92676 Modjeska
    Canyon VEN 91307 Canoga Park
    ORG 92676 Silverado VEN 91311 Chatsworth
    ORG 92677 Laguna Beach VEN 91312 Deluxe Check Printers
    ORG 92678 Trabuco Canyon VEN 91313 Chatsworth
    ORG 92679 San Juan
    Capistrano VEN 91319 Newbury Park
    ORG 92680 Tustin VEN 91319 Thousand Oaks
    ORG 92681 Tustin VEN 91320 Thousand Oaks
    ORG 92683 Westminster VEN 91358 Thousand Oaks
    ORG 92684 Westminster VEN 91360 Thousand Oaks
    ORG 92686 Yorba Linda VEN 91361 Thousand Oaks
    ORG 92687 Yorba Linda VEN 91362 Thousand Oaks
    ORG 92688 San Juan
    Capistrano VEN 93001 Ventura
    ORG 92690 Mission Viejo VEN 93002 San Buenaventura
    ORG 92690 San Juan
    Capistrano VEN 93002 Ventura
    ORG 92691 San Juan
    Capistrano VEN 93003 Ventura
    ORG 92692 San Juan
    Capistrano VEN 93004 Ventura
    ORG 92693 Mission Viejo VEN 93005 Montalvo
    ORG 92693 San Juan
    Capistrano VEN 93005 San Buenaventura
    ORG 92701 Santa Ana VEN 93005 Ventura
    ORG 92702 Santa Ana VEN 93006 East Ventura
    ORG 92703 Santa Ana VEN 93006 San Buenaventura
    ORG 92704 Santa Ana VEN 93006 Ventura
    ORG 92705 Santa Ana VEN 93007 San Buenaventura
    ORG 92706 Santa Ana VEN 93007 Saticoy
    ORG 92707 Santa Ana VEN 93007 Ventura
    ORG 92708 Santa Ana VEN 93009 County Government Center
    ORG 92709 Irvine VEN 93009 Ventura
    ORG 92710 Irvine VEN 93009 Ventura County Govt Cntr
    ORG 92710 Tustin marine
    Corps Air VEN 93010 Camarillo
    ORG 92711 Santa Ana VEN 93011 Camarillo
    ORG 92712 Santa Ana VEN 93012 Camarillo
    ORG 92713 Irvine VEN 93015 Fillmore
    ORG 92714 Irvine VEN 93016 Fillmore
    ORG 92715 Irvine VEN 93020 Moorpark
    ORG 92716 Irvine VEN 93021 Moorpark
    ORG 92716 University VEN 93022 Oak View
    ORG 92717 Univ of
    California
    Irvine VEN 93023 Ojai
    ORG 92718 Irvine VEN 93024 Ojai
    ORG 92720 Irvine VEN 93030 Oxnard
    ORG 92728 Fountain valley VEN 93031 Oxnard
    ORG 92728 Santa Ana VEN 93032 Oxnard
    ORG 92730 Fluor Corp VEN 93033 Oxnard
    ORG 92799 Santa Ana VEN 93034 Oxnard
    ORG 92801 Anaheim VEN 93034 Saviers
    ORG 92802 Anaheim VEN 93035 Oxnard
    ORG 928U3 Anaheim VEN 93040 Piru
    ORG 92804 Anaheim VEN 93041 Port Hueneme
    ORG 92805 Anaheim VEN 93042 Port Hueneme
    ORG 92806 Anaheim VEN 93043 Port Hueneme
    ORG 92807 Anaheim VEN 93044 Port.Hueneme
    ORG 92808 Anaheim VEN 93060 Santa Paula
    ORG 92812 Anaheim VEN 93061 Santa Paula
    ORG 92814 Anaheim VEN 93062 Simi
    ORG 92815 Anaheim VEN 93062 Simi Valley
    ORG 92816 Anaheim VEN 93063 Simi Valley
    ORG 92817 Anaheim VEN 93064 Brandeis
    ORG 92817 Anaheim
    Hills VEN 93064 Simi valley
    ORG 92825 Anaheim VEN 93065 Simi Valley
    ORG 92850 Household
    Finance Corp VEN 93066 Somis
    VEN 00206 Los Padres
    Ntl Forest VEN 93093 Simi Valley
    VEN 90263 Malibu VEN 93097 First Interstate Bancorp
    VEN 90264 Malibu VEN 93099 Farmers Ins
    VEN 90265 Malibu

    February 18, 1994
    SUPPLEMENT TO BULLETIN #627
    BULLETIN TO ALL MEMBERS:

    RE: SUPPLEMENT TO BULLETIN #627 REGARDING CALIFORNIA DEPARTMENT OF INSURANCE EMERGENCY DIRECTIVE OF JANUARY 31, 1994

    Attached is a memo issued by John Garamendi, Insurance Commissioner on February 14, 1994. It serves as an addendum to the Surplus Line Association Bulletin #627, dated February 8, 1994 and provides clarification of the January 31, 1994 emergency directive set forth by the California Department of Insurance.

    To further assist in understanding the implications of this directive, LeBoeuf, Lamb, Greene and MacRae issued a memo to their clients. This memo is also attached. LeBoeuf references three contacts in their firm, John Finston, Thomas McDonald or Kenneth Schnoll who may be contacted for additional information. You can reach them at telephone 415-9511100.

    James S. Pugh
    Assistant Manager
    JSP/imb
    Attachments
    FEB 17 1994

    STATE OF CALIFORNIA
    DEPARTMENT OF INSURANCE
    45 FREMONT STREET, 23RD FLOOR
    SAN FRANCISCO, CA 94105
    February 14, 1994

    TO: All Insurers Admitted To Transact Business in the State of California, The Surplus Lines Association, Producer Associations, and Other Interested Persons

    FROM: John Garamendi Insurance Commissioner

    RE: Clarification Of January 31, 1994 Emergency Directive

    On January 31, 1994, as a result of the January 17, 1994 Northridge Earthquake, the California Department of Insurance issued an Emergency Directive regarding forbearance in cancellations or nonrenewals of insurance resulting from nonpayment of premiums caused by hardship due to the state of emergency.

    The primary purpose of this Emergency Directive was to assure temporary and emergency relief to persons located in areas subject to the state of emergency who suffered displacement or dislocation, or who -became temporarily unemployed as a result of the 1/17/94 earthquake.

    The Department has received numerous inquiries from the regulated industry concerning some practical difficulties in complying with the directive and the scope of relief and geographical territory encompassed by the directive.

    The purpose of this document is to confirm the purposes of the initial Directive and to clarify that it was designed to provide illustrative guidelines, and was not intended as a mandatory procedure applicable to all circumstances. Individual insurers are urged to adopt policies for disaster affected customers that will achieve the stated purposes of the January 31, Directive and that are consistent with their own business practices and organizational considerations. The January 31 Directive may be considered as a checklist of the types of actions the Department urges be undertaken.

    The Department will examine individual complaints by insureds who were denied any accommodations regarding cancellation or nonrenewal in spite of demonstrable hardships in order to determine whether any duties imposed on insurers by law or regulation have been violated or whether any prohibited acts performed.-

    DATED: February 14, 1994

    John Garamendi
    Insurance Commissioner

    February 16, 1994
    FOR: Our clients
    FROM: LeBouf, Lamb,Greene & MacRae
    SUBJECT: Clarification of Emergency Directive Regarding policies in Areas Affected by January 17, 1994 Earthquake

    On February 11, 1994, we reported that Deputy Commissioner Hattie Hoge announced that, on Monday,, February 14, 1994, the Department planned to issue a clarification of its emergency directive intended to protect persons affected by the January 17, 1994 Southern California earthquake. (For a description of the emergency directive, please see our memorandum of February 2, 1994.) The Department's two page clarification is attached. The clarification states that the emergency directive provides illustrative guidelines,, and van not intended an a mandatory procedure applicable to all circumstances." The Department urges insurers to adopt procedures implementing the stated purposes of the emergency directive that are consistent with the insurer's "own business practices and organizational considerations."

    The Department also warns insurers that it will investigate complaints by insureds who were denied accommodations in spite of "demonstrable hardships* in order to determine whether the insurer violated any "duties imposed on insurers by law or regulation."

    If you have any questions or would like additional information, please call John Finston, Thomas McDonald or Kenneth Schnoll at (415) 931-1100.