Seismic Safety Account: funding.

Existing law establishes the Seismic Safety Commission to perform specified duties relating to earthquake hazard reduction and other seismic safety issues. Existing law also provides for the Seismic Safety Account within the Insurance Fund. Money in the account may be appropriated by the Legislature to fund the Seismic Safety Commission and certain administrative costs incurred by the Department of Insurance. Existing law provides for assessments levied against certain insurers to be deposited in the Seismic Safety Account. Under existing law, the provisions establishing the Seismic Safety Account and authorizing these assessments expire on July 1, 2012. This bill would require the department, instead, to calculate an annual assessment to be charged to each commercial and residential property exposure in an amount set annually by the department based on specified factors, including the amount required for the support of the Seismic Safety Commission and the collection and administrative costs of the department, not to exceed $0.15 per property exposure. The bill would require the insurer to collect the assessment and remit it to the department unless the insurer elects to pay the assessment on the insured's behalf. The bill would extend the operation of these provisions indefinitely. This bill would declare that it is to take effect immediately as an urgency statute.