20th Century Insurance Co

Sunrise came two hours after the Northridge earthquake struck in January 1994, and the morning light showed what looked like bomb blast wreckage at 20th Century Insurance's headquarters in Woodland Hills. Computers had crashed through the floor. More than 100 windows were shattered and office curtains--blown out by a rush of air--hung over window sills like laundry set out to dry.

A.M. Best last week upgraded its financial rating of 20th Century Insurance Co. by two grades to an A minus, up from a B plus rating. "We are pleased 20th Century's financial strength has been continually recognized and ratings upgraded by these rating agencies," said 20th Century's chief executive William Mellick in a statement.

A Los Angeles jury Wednesday awarded a North Hills woman $65,000 after finding 20th Century Insurance guilty of breach of contract and bad faith in its handling of the earthquake damage claim on her home. Renee Zabel, who has lived in her home for 34 years, filed a damage claim shortly after the January 1994 Northridge earthquake. 20th Century sent out a claims adjuster who inspected Zabel's home and, after allowing for deductibles in her policy, paid her about $13,000 to cover damages.

A Los Angeles jury Wednesday awarded a North Hills woman $65,000 after finding 20th Century Insurance guilty of breach of contract and bad faith in its handling of the earthquake damage claim on her home. Renee Zabel, who has lived in her home for 34 years, filed a damage claim shortly after the 1994 Northridge earthquake. 20th Century sent a claims adjuster who inspected Zabel's home and, after allowing for deductibles in her policy, paid her about $13,000 to cover damages.

A Superior Court judge Thursday denied 20th Century Insurance's motion to force an executive of a nonprofit earthquake consumer group to turn over a list of thousands of names of homeowners who had either attended its meetings or later joined the organization. 20th Century Insurance had asked George Kehrer, head of Community Assisting Recovery (CARe) in Northridge, to produce a list of its members, sign-up sheets and other documents relating to its group.

On the eve of the third anniversary of the Northridge earthquake, some homeowners plan to gather for a candlelight vigil tonight at the Woodland Hills headquarters of 20th Century Insurance to protest the company's handling of their quake claims. Organizers from the group Community Assisting Recovery, or CARe, maintain that too many claims have been denied or ignored in the past three years.

20th Century Insurance, which was almost knocked out of business by $1 billion in Northridge earthquake insurance damage claims, has decided to resume offering homeowners earthquake insurance. 20th Century will offer earthquake insurance as an option to its remaining 68,000 homeowner policyholders as of Feb. 15. This quake coverage will not be part of the new California Earthquake Authority.

Almost three years after the Northridge earthquake caused the most costly urban disaster in U.S. history, the first among hundreds of insurance claim lawsuits just now are reaching trial and several thousand other quake damage claims remain unsettled outside the courts. The long wait for resolution has left many homeowners embittered and frustrated as they live in severely damaged houses and deal with lingering uncertainty. And even a courtroom victory can feel a lot like losing.

20th Century Industries has agreed to a $500,000 settlement of a shareholder lawsuit that alleged mismanagement of the company's earthquake insurance coverage. The Woodland Hills-based parent of 20th Century Insurance has agreed to pay attorneys for shareholders who filed the suit up to $500,000. And the company agreed to set up an ad hoc committee of its board of directors to review its catastrophic-loss policies.