John Drennan, an actuary, and Dennis Kuzak, a senior consultant to EQE International, defended the adopted rating structure Thursday, saying it took into account varying overall quake risks.
But they said it was not practical to have a different rate for each of California's 2,100 ZIP Codes, so some "averaging" had to be done.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Proposed New Rates
Shown by region of Los Angeles County is a sampling of rates approved by the California Earthquake Authority but not yet made final. The figures are for a basic earthquake policy for homes of frame construction, per $1,000 of coverage.
BUILT 1979 BUILT 1960 BEFORE AREA TO PRESENT TO 1978 1960 *Antelope Valley $1.50 $1.90 $2.00 *San Fernando Valley $3.90 $4.80 $5.10 *Part of Westside $1.70 $2.10 $2.20 *Most other areas $2.70 $3.30 $3.50
Note: Rates shown are generalized by area. The structure is set by ZIP Code and some communities within each area may have different rates.
Source: state Department of Insurance