SWG Continues Development of Pooled Mechanism for Transfer of SRL-V Buildings

October 5, 2007:  Advised Board that the deadline to transfer expired June 30, 2007.  In anticipation that the legislature will adopt new legislation to allow additional transfers, the SWG has continued development of the pooled mechanism for transfer of SRL-V buildings.  The JPA will be called the Earthquake Recovery Indemnity Authority (ERIA).  The funding mechanism will include a 35-year premium calculation payable in annual installments, credit for maintaining separate insurance, $50M annual aggregate limit, and limited assessment provisions including a 10% increase and 5 year cash call.  Priority of payments will be insurance coverage, then ERIA, then FEMA, then any additional loss will be considered a shared cost under the transfer agreement.