Section 25395.41 Of Article 8.7. California Financial Assurance And Insurance For Redevelopment Program From California Health And Safety Code >> Division 20. >> Chapter 6.8. >> Article 8.7.
25395.41
. (a) The secretary shall solicit proposals for a package
of environmental insurance products from insurance companies through
a competitive bidding process. The request for proposal prepared by
the secretary shall identify the objectives of this article and the
specific types and coverage limits of the insurance products desired,
including endorsements and exclusions. The request for proposal
shall require that the proposal allow a purchaser the opportunity to
pay for additional coverage without losing the lower transaction
costs structure of the prenegotiated policy. The secretary shall hold
at least one public workshop in both the northern and the southern
part of the state to present and solicit comments on the request for
proposal prior to receiving any proposals.
(b) (1) The secretary shall evaluate the extent to which each
proposal submitted pursuant to subdivision (a) meets the objectives
of the request for proposal and shall also evaluate each proposal and
interested party using all of the following factors:
(A) Product pricing.
(B) Claims history.
(C) Underwriting history.
(D) Company financial strength and size.
(E) Scope of policy coverages, including endorsements and
exclusions.
(F) Marketing and distribution of the insurance products.
(G) Any other factor that the secretary determines will affect the
ability of the selected insurance company to meet the requirements
of this article and provide the environmental insurance products in
the most effective and efficient manner and at the least cost to the
state and to persons seeking that insurance.
(2) The secretary shall select one or more insurance companies
that have submitted a proposal pursuant to subdivision (a) to be the
exclusive state-designated provider of environmental insurance under
this article for a period of three years from the date of selection.
The secretary shall select a company that, in his or her
determination, has submitted a proposal that best meets the
requirements of this article and the objectives stated in the request
for proposal at the best possible price. Every three years, the
secretary shall repeat the competitive bidding process specified in
this section.
(c) An insurance company selected to provide prenegotiated
environmental insurance products pursuant to subdivision (b) shall
offer this prenegotiated package of insurance products to any
interested recipient of a loan under the CLEAN Program. The insurance
company shall also offer the environmental insurance products made
available under this article to any other person who conducts a
response action in the state.
(d) The secretary shall implement this section in consultation
with representatives of other appropriate state agencies, including
the Business, Transportation and Housing Agency, the Office of
Planning and Research, the Pollution Control Financing Authority, the
Department of Insurance, the state board, the department, and with
other interested parties, including developers, lenders, insurers,
and representatives from environmental organizations. The secretary
shall implement this section in a manner that is consistent with the
requirements for state procurement of services set forth in Article 4
(commencing with Section 10335) of Chapter 2 of Part 2 of Division 2
of the Public Contract Code.