Amended in Senate April 2, 2014

Senate Bill No. 1273

Introduced by Senator Lara

February 21, 2014

An act to amend Sections 11629.7, 11629.71, begin delete and end delete 11629.72 begin insert , 11629.73, 11629.745, 11629.75, 11629.76, 11629.77, 11629.81, 11629.85, and 11629.87 end insert of, and to repeal Section 11629.84 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

SB 1273, as amended, Lara. Insurance: low-cost automobile insurance program.

begin delete

Existing

end delete

begin insert (1) end insert begin insert   end insert begin insert Existing end insert law establishes within the California Automobile Assigned Risk Plan (CAARP) a low-cost automobile insurance program for all counties in California, until January 1, 2016, in order to provide a means for eligible consumers to buy automobile insurance, as specified. The parameters of the program, include, but are not limited to, value limits for the insured vehicle, initial ratesetting for certain counties, a surcharge for specified high-risk drivers, eligibility, sales commissions set at the rate CAARP pays for private passenger nonfleet risks, cancellation restrictions, and reporting requirements.

This bill would revise and recast the parameters of the program by, among other things, deleting provisions that limit the initial implementation of the program to specified counties and require the Insurance Commissioner to make a need-based assessment as to implementation in all other counties, deleting the repeal date of the program, thereby extending the operation of the program indefinitely, and deleting the limits on the value of an automobile that can be insured through the program. The bill would also expand the surcharge and eligibility requirements to include drivers with fewer than 3 years of driving history, including a person who operates a motor vehicle with a specified type of driver’s license, or drivers who have not been continually licensed for the past 3 years.

begin insert

(2) Existing law requires an agent or broker, referred to as a producer, to inform every new prospective automobile insurance policyholder who requests specified information that the low-cost automobile insurance policy may be available for qualifying motorists. Under existing law, if a consumer requests more information about the program from a producer who is not certified under the plan, that producer is required to provide the consumer with a toll-free telephone number for the plan as an alternative coverage option for the consumer.

end insert begin insert

This bill would allow those producers to alternatively provide the consumer with the programs’s Internet Web site.

end insert begin insert

(3) Under existing law, a certified producer who issues a low-cost automobile insurance policy pursuant to the program is entitled to the same commission rate as is paid by the plan for private passenger, nonfleet risks.

end insert begin insert

This bill would instead entitle those certified producers to an unspecified percentage rate of commission. The bill would require the plan and an insurance carrier to notify producers of pending policy cancellation, allow a consumer to reinstate a policy in lieu of canceling a policy that has been canceled for nonpayment of premium, to accept payment by check or money order, to allow a consumer or producer to make a down payment and installment payments by debit card or credit card either by telephone or through its Internet Web site.

end insert begin insert

(4) Existing law requires the plan to report to the Legislature annually on the status of the program, and requires the commissioner to make an annual report to specified committees of the Legislature.

end insert begin insert

This bill would instead require the plan to make the former report to the commissioner and to include specified data in that report, and would require the commissioner to combine the 2 reports and submit the combined report to the Legislature on or before March 15 annually.

end insert begin insert

(5) Existing law requires, in order to be eligible for funding through the budget process, that the plan be reviewed by specified committees of the Legislature.

end insert begin insert

This bill would delete that provision.

end insert begin insert

(6) Existing law requires the plan to establish and maintain an Internet Web site that provides members of the public with an option for either a referral to a list of certified agents or brokers, as specified, or an assignment to a randomly selected certified agent or broker, as specified.

end insert begin insert

This bill would, instead require the plan’s Internet Web site to provide consumers both of those options and the additional option to apply directly on the Internet Web site. The bill would require the plan and an insurance carrier to establish a data system, as specified. The bill would also delete obsolete provisions and make conforming changes.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 11629.7 of the Insurance Code is
amended to read:

11629.7.  

(a) There is established, within the California
Automobile Assigned Risk Plan established under Section 11620,
a low-cost automobile insurance program for all counties in
California.

(b) The commissioner, after a public hearing, shall approve or
issue a reasonable plan for the equitable apportionment, among
insurers required to participate in the California Automobile
Assigned Risk Plan established under Section 11620, of persons
who are eligible to purchase through the program a low-cost
automobile insurance policy, as described in Section 11629.71.
The program shall be conducted in conjunction with the California
Automobile Assigned Risk Plan established under Section 11620.

SEC. 2.  

Section 11629.71 of the Insurance Code is amended
to read:

11629.71.  

A low-cost automobile insurance policy for purposes
of the program established under this article shall have all of the
following attributes:

(a) The policy shall offer coverage in the amount of ten thousand
dollars ($10,000) for bodily injury to, or death of, each person as
a result of any one accident and, subject to that limit as to one
person, the amount of twenty thousand dollars ($20,000) for bodily
injury to, or death of all persons as a result of any one accident,
and the amount of three thousand dollars ($3,000) for damage to
property of others as a result of any one accident.

(b) The coverage required by Section 11580.2 shall be made
available to the consumer. However, an insurer may charge a
premium for that coverage in addition to the premium set forth in
Section 11629.72. Notwithstanding the coverage amounts required
by Section 11580.2 and Section 16056 of the Vehicle Code,
uninsured motorist coverage issued in conjunction with a low-cost
automobile policy under the program, with coverage limits at least
equal to the limits of liability in the underlying low-cost automobile
policy, shall satisfy the requirements of Section 11580.2 and the
financial responsibility requirements of Sections 4000.37, 16021,
and 16431 of the Vehicle Code.

(c) Medical payments coverage shall be made available to the
consumer. However, an insurer may charge a premium for that
coverage in addition to the premium set forth in Section 11629.72.

(d) The policy shall have an initial term of one year, renewable
on an annual basis thereafter.

(e) The policy shall cover the person named in the policy, and
to the same extent that insurance is provided to the named insured,
any other person using the automobile, provided the use is with
his or her permission, express or implied, and within the scope of
that permission, except that the policy shall not cover members of
the named insured’s household who do not satisfy the requirements
of subdivisions (b) to (e), inclusive, of Section 11629.73.

SEC. 3.  

Section 11629.72 of the Insurance Code is amended
to read:

11629.72.  

(a) The annual rate offered under the program for
each of the counties in California shall be established at a date
according to the discretion of the commissioner. A surcharge, as
a percentage of the base rate, shall be added to the base rate and
that percentage shall be set at the discretion of the commissioner,
if the named insured or a resident of the household of the named
insured will be a driver of the automobile covered under the
low-cost policy, and is begin delete any end delete begin insert both end insert of the following:

(1) An unmarried male between 19 and 24 years of age.

(2)  begin delete Operates end delete begin insert To whom one or more of the following applies: end insert

begin insert (A) end insert begin insert   end insert begin insert Operates end insert a vehicle with a driver’s license issued by the
Department of Motor Vehicles pursuant to Section 12801.9 of the
Vehicle Code and has fewer than three years of driving history.

begin delete

(3)

end delete

begin insert (B) end insert  Has fewer than three years of driving history.

begin delete

(4)

end delete

begin insert (C) end insert  Has not been continually licensed to drive for the past three
years.

(b) (1) In addition to existing premium installment options
offered by the California Automobile Assigned Risk Plan under
Article 4 (commencing with Section 11620), the plan shall also
make available to an insured under the program a premium
installment option pursuant to which an insured is required to pay
not more than 15 percent of the total policy cost upon issuance of
the low-cost policy, followed thereafter by six other payments.

(2) Beginning on January 1, 2015, the commissioner may
approve or issue new installment plans in addition to or replacing
those offered pursuant to paragraph (1).

(3) No other premium financing arrangement shall be permitted.

(c) Rates for policies issued under the program in each county
or city and county shall be reviewed and revised as follows:

(1) Rates shall be sufficient to cover (A) losses incurred under
policies issued under the program, and (B) expenses, including,
but not limited to, all reasonable and necessary expenses such as
the costs of administration, underwriting, taxes, commissions, and
claims adjusting, that are incurred due to participation in the
program. For purposes of this paragraph, “losses incurred” means
claims paid, claims incurred and reported, and claims incurred but
not yet reported. In assessing loss reserves, the commissioner shall
only allow loss reserves that are estimated from actual losses in
the program or comparable data by a licensed statistical agent, as
adjusted to reflect coverage provided under the program.

(2) Rates shall be set so as to result in no projected subsidy of
the program by those policyholders of insurers issuing policies
under the program who are not participants in the program.

(3) Rates shall be set with respect to the program so as to result
in no projected subsidy by policyholders in one county of
policyholders in any of the other counties.

(4) Commencing on January 1, 2015, and no less than every
three years thereafter, the California Automobile Assigned Risk
Plan shall submit the loss and expense data, together with a
proposed rate and the surcharge authorized by subdivision (a) for
the low-cost automobile policy for the program, to the
commissioner for approval in accordance with this chapter. The
commissioner shall act on the recommendation within 90 days.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 11629.73 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.73.  

A low-cost automobile insurance policy under the
program shall only be available for purchase by persons who satisfy
the following eligibility requirements:

(a) The person shall be in a household with a gross annual
household income that does not exceed 250 percent of the federal
poverty level, as defined in Part 6.2 (commencing with Section
12693) or as defined in an equivalent manner that is approved by
the commissioner.

(b) The person shall be no less than 19 years of age and have
been continuously licensed to drive an automobile for the previous
three years begin insert , except that a person who has not been continually
licensed to drive or has fewer than three years of driving history
may qualify for the surcharge under subdivision (a) of Section
11629.72 end insert .

(c) The person shall have not more than one of either, but not
both, of the following within the previous three years:

(1) A property damage only accident in which the driver was
principally at fault.

(2) A point for a moving violation.

(d) The person shall not have on record within the previous
three years, an at-fault accident involving bodily injury or death.

(e) The person shall not have a felony or misdemeanor
conviction for a violation of the Vehicle Code on his or her motor
vehicle record.

(f) The person shall not be a college student claimed as a
dependent of another person for federal or state income tax
purposes.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 11629.745 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.745.  

(a) An agent or broker (hereafter referred to as a
producer) who conducts business in a county in which a low-cost
automobile insurance policy is available pursuant to this article
shall inform every new prospective automobile insurance
policyholder who requests a minimum limits or basic limits
insurance policy, or coverage to meet California’s minimum limits
automobile insurance requirements, that the low-cost automobile
insurance policy may be available for qualifying motorists. The
information may be provided begin delete verbally end delete begin insert orally end insert if the producer has
been contacted by telephone, or in writing, but shall be
communicated to the policyholder prior to the application for
automobile insurance coverage in the language in which the
producer has otherwise communicated with the consumer.

(b) If the consumer requests more information about the low-cost
program the producer shall do either of the following:

(1) If the producer is California Automobile Assigned Risk Plan
certified, provide the consumer with an explanation in an
information pamphlet produced by the California Automobile
Assigned Risk Plan and approved and provided by the Department
of Insurance of the qualifications, cost and coverage provided by
the policy. If the consumer qualifies for the low-cost policy and
wishes to purchase the policy, the California Automobile Assigned
Risk Plan certified producer shall provide the application and,
upon completion, submit the application, supporting documents,
and the applicant’s certification to the California Automobile
Assigned Risk Plan. The submittal of the California Automobile
Assigned Risk Plan application may be in addition to any other
coverage offered or applied for through the producer.

(2) If the producer is not California Automobile Assigned Risk
Plan certified, the producer shall provide the consumer with the
toll-free telephone number for the California Automobile Assigned
Risk Plan begin insert or the program’s Internet Web site address end insert as an option
to coverage offered by the producer.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 11629.75 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.75.  

(a) A certified producer shall provide to an applicant
for a low-cost automobile insurance policy under this article a
notice relating to coverage under the policy. The notice shall be
provided in a separate document at the time of application, and
include the following statement in 14-point boldface type:

“NOTICE

INSURANCE COVERAGE PROVIDED IN THE POLICY YOU
ARE BUYING CONTAINS REDUCED LIABILITY
COVERAGE FOR PERSONAL INJURIES OR PROPERTY
DAMAGE RESULTING FROM THE OPERATION OF THE
INSURED VEHICLE. IF LOSSES FROM AN AUTOMOBILE
ACCIDENT EXCEED THE COVERAGE PROVIDED BY THIS
POLICY, YOU CAN BE HELD PERSONALLY LIABLE AND
RESPONSIBLE FOR THOSE LOSSES.

THIS POLICY PROVIDES LIABILITY COVERAGE FOR
INJURIES OR DEATH CAUSED TO OTHER PERSONS IN
THE TOTAL AMOUNT OF TEN THOUSAND DOLLARS
($10,000) PER PERSON IN ANY ONE ACCIDENT, AND UP
TO A TOTAL AMOUNT OF TWENTY THOUSAND DOLLARS
($20,000) FOR ALL PERSONS IN ANY ONE ACCIDENT. THE
POLICY ALSO PROVIDES UP TO A TOTAL AMOUNT OF
THREE THOUSAND DOLLARS ($3,000) IN LIABILITY
COVERAGE FOR PROPERTY DAMAGE IN ANY ONE
ACCIDENT. IF YOU WANT MORE INSURANCE COVERAGE,
YOU MUST REQUEST A DIFFERENT POLICY.

THIS POLICY ALSO DOES NOT COVER DAMAGE TO YOUR
OWN VEHICLE, LOSSES RESULTING FROM YOUR BODILY
INJURY OR DEATH, OR COVERAGE FOR LOSSES CAUSED
BY AN UNINSURED OR UNDERINSURED DRIVER.
HOWEVER, THESE OTHER COVERAGES MAY BE
AVAILABLE AT EXTRA COST THROUGH OTHER
INSURERS.

THIS POLICY MAY ALSO CONTAIN UNINSURED
MOTORIST BODILY INJURY COVERAGE IN THE TOTAL
AMOUNT OF TEN THOUSAND DOLLARS ($10,000) PER
PERSON IN ANY ONE ACCIDENT AND UP TO A TOTAL
AMOUNT OF TWENTY THOUSAND DOLLARS ($20,000)
FOR ALL PERSONS IN ANY ONE ACCIDENT, IF YOU SO
CHOOSE. IN ADDITION, THIS POLICY MAY ALSO
CONTAIN MEDICAL PAYMENTS COVERAGE IN THE
AMOUNT OF ONE THOUSAND DOLLARS ($1,000) PER
PERSON IN ANY ONE ACCIDENT, IF YOU SO CHOOSE.

THIS POLICY DOES NOT COVER ANY OTHER DRIVER IN
YOUR HOUSEHOLD WHO:

(a) IS UNDER 19 YEARS OF AGE; OR

(b) HAS LESS THAN 3 YEARS OF CONTINUOUSLY
LICENSED DRIVING EXPERIENCE begin insert (UNLESS THE POLICY
INCLUDES A SURCHARGE FOR THIS DRIVER) end insert ; OR

(c) HAS MORE THAN ONE OF EITHER, OR BOTH, OF THE
FOLLOWING:

--A PROPERTY DAMAGE ONLY ACCIDENT IN WHICH
THE DRIVER WAS PRINCIPALLY AT FAULT.

--A POINT FOR A MOVING VIOLATION; OR

(d) HAS IN THE PREVIOUS 3 YEARS AN AT-FAULT
ACCIDENT INVOLVING BODILY INJURY OR DEATH; OR

(e) HAS A FELONY OR MISDEMEANOR CONVICTION
FROM A VIOLATION OF THE VEHICLE CODE ON HIS OR
HER MOTOR VEHICLE RECORD.”

(b) When the certified producer establishes delivery of the
disclosure form specified in subdivision (a) by obtaining the
signature of the applicant or insured, there shall be a conclusive
presumption that the certified producer has complied with the
disclosure requirements of this section.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 11629.76 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.76.  

(a) For a low-cost automobile insurance policy
issued pursuant to the program, certified producers shall be entitled
to begin delete the same end delete begin insert a end insert commission rate begin delete as is paid by the California
Automobile Assigned Risk Plan for private passenger, nonfleet
risks under Article 4 (commencing with Section 11620). end delete begin insert of ____
percent. end insert

(b) Notwithstanding subdivision (a), the commissioner may at
any time establish a commission for a low-cost automobile
insurance policy issued pursuant to the program and may make
the commission effective on any policy originated within an entire
year, or any portion of a year, as is needed to provide an incentive
to certified producers to sell low-cost automobile insurance to
eligible applicants. The commissioner shall not establish a
commission pursuant to this subdivision if the commissioner
determines that setting the commission rate will result in a lower
commission begin delete percentage than would exist pursuant to subdivision
(a). end delete begin insert than the commission paid by the California Automobile
Assigned Risk Plan for private passenger, nonfleet risks under
Article 4 (commencing with Section 11620). end insert

(c) No other fees of any kind may be charged or collected
pursuant to this section and the sale of a low-cost policy under this
article shall not be conditioned on the purchase of any other product
or service.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 11629.77 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.77.  

(a) A low-cost automobile insurance policy issued
pursuant to the program shall be canceled only for the following
reasons:

(1) Nonpayment of premium.

(2) Fraud or material misrepresentation affecting the policy or
the insured.

(3) The purchase of additional automobile liability insurance
coverage in violation of subdivision (a) of Section 11629.78.

(4) The purchase or maintenance of automobile liability
insurance coverage other than a low-cost policy for any additional
vehicles in the insured’s household, in violation of subdivision (b)
of Section 11629.78.

begin insert

(b) The California Automobile Assigned Risk Plan and an
insurance carrier shall notify producers of pending policy
cancellations. The plan and an insurance carrier shall allow a
consumer to reinstate, in lieu of canceling, all policies that have
been canceled for nonpayment of premium. The plan and an
insurance carrier shall accept payment by check or money order,
and shall allow a consumer or producer to make a down payment
and installment payments by debit card or credit card, either by
telephone or through its Internet Web site.

end insert begin delete

(b)

end delete

begin insert (c) end insert  A policy shall be nonrenewed only for the following reasons:

(1) A substantial increase in the hazard insured against.

(2) The insured no longer meets the applicable eligibility
requirements. In this regard, the eligibility of an insured shall be
recertified by the California Automobile Assigned Risk Plan after
the first year of eligibility, and annually thereafter by the insurer
that issued the policy.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 11629.81 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.81.  

begin insert (a) end insert begin insert   end insert The California Automobile Assigned Risk Plan
shall report to the begin delete Legislature end delete begin insert commissioner end insert on an annual basis,
and at those additional times as it deems prudent, on the status of
the program. begin insert The report shall include data regarding new policies,
renewed policies, and policy cancellations or nonrenewals. end insert

begin insert

(b) The department shall combine the report pursuant to
subdivision (a) with the report required by Section 11629.85 and
submit the combined report to the Legislature on or before March
15 of each year.

end insert begin insert

(c) A report submitted pursuant to subdivision (b) shall be
submitted in compliance with Section 9795 of the Government
Code.

end insert

begin delete SEC. 4. end delete
begin insert SEC. 10. end insert   

Section 11629.84 of the Insurance Code is repealed.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 11629.85 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.85.  

(a) On or before March begin delete 1 end delete begin insert 15 end insert of each year, the
commissioner shall prepare and propose a plan begin insert in a report end insert to the
begin delete Senate Committee on Banking, Finance, and Insurance and the
Assembly Committee on Insurance end delete begin insert Legislature end insert setting forth the
methods the commissioner intends to implement to inform
households eligible for the program about the availability of
low-cost automobile insurance. begin delete To be eligible for funding through
the budget process, the plan shall be reviewed by the Senate
Committee on Banking, Finance, and Insurance and the Assembly
Committee on Insurance. The information required under
subdivision (c) shall also be provided to the Senate Committee on
Transportation and Housing and the Assembly Committee on
Transportation. end delete

(b) The plan shall include, at a minimum, a brief description of
methods proposed to be used, anticipated costs, sources of revenue,
goals, targets, objectives, and a justification of the proposed
methods. The plan shall also explain how the department proposes
to work in cooperation with the California Automobile Assigned
Risk Plan, the social service begin delete departments in eligible counties, end delete
begin insert agencies, end insert the Department of Motor Vehicles, and community-based
organizations in order to inform eligible households of the
existence of the program.

(c) The plan shall also include all of the following:

(1) The commissioner’s determination regarding whether the
program has been successful, based on the criteria specified in
subdivision (d), and an explanation regarding that success or lack
thereof.

(2) In cooperation with the California Automobile Assigned
Risk Plan, structural characteristics of the program that may require
statutory revision in order for the program to succeed or to improve
upon existing success.

(3) Impediments to success of the program that can reasonably
be overcome by revision to the strategies adopted by the
department.

(4) A detailed explanation of the department’s use for the
program of funds assessed pursuant to Section 1872.81 begin insert for the
previous fiscal year end insert .

(5) For the previous calendar year, a list of the total low-cost
auto premium for each county in which the program was available.

(d) The program is successful if the following occur:

(1) The program generated sufficient premiums to cover losses
incurred under policies issued under the program, and expenses
incurred by the program, as calculated pursuant to subdivision (c)
of Section 11629.72.

(2) The program served the public purpose of offering access
to automobile insurance to otherwise underserved communities in
the program areas.

(3) The program offered access to automobile insurance to
previously uninsured motorists seeking affordable coverage in the
program areas.

(4) The program’s outreach efforts lead uninsured motorists to
contact a producer, and the driver obtains any auto insurance policy
that complies with California law.

(e) Any written or oral advertisements, including, but not limited
to, paid or unpaid commercial or noncommercial advertising, by
the department with reference to the low-cost automobile insurance
program shall reference the department and shall not reference the
commissioner by name or office, or include the commissioner’s
voice, image, or likeness. The department shall not participate with
any nongovernmental entity that produces or intends to produce
advertisements or educational material that include the name of
the commissioner or his or her voice, image, or likeness, and that
are intended to make eligible households aware of the existence
of low-cost automobile insurance.

begin insert

(f) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government
Code.

end insert

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 11629.87 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

11629.87.  

(a) Subject to the approval of the commissioner,
the California Automobile Assigned Risk Plan shall establish and
maintain begin delete , or contract with an entity to establish and maintain, end delete an
Internet Web site that shall provide members of the public with
an option for begin delete either end delete begin insert each end insert of the following:

(1) Referral to a list of certified agents or brokers with an office
in the same geographic area as the consumer who may be contacted
to purchase a low-cost automobile insurance policy. This list shall
contain the name, address, telephone number, and, if available,
the begin delete e-mail end delete begin insert email end insert address and Internet Web site of those agents or
brokers.

(2) Assignment to a randomly selected certified agent or broker
in the same geographic area as the consumer who can be accessed
online to process and accept an application to purchase a low-cost
automobile insurance policy. The assigned agent or broker shall
be subject to the conditions specified in Section 11629.86.

begin insert

(3) The ability to apply directly on the Internet Web site.

end insert

(b) The plan may, with the approval of the begin delete Department of
Insurance, end delete begin insert department, end insert authorize the use, for a designated period
of time, of the department-owned Internet Web site domain name
http://www.mylowcostauto.com, or any other relevant domain
names controlled by the Department of Insurance, for the purposes
of this section and Section 11629.86.

(c) The plan shall ensure that the Internet Web site does all of
the following:

(1) Provides all disclosures and other information required by
law that would otherwise be provided by a producer.

(2) Effectively educates consumers about the eligibility
requirements, the benefits, and the limits of the low-cost
automobile insurance policy.

(3) Describes or establishes a process to collect any documents
that are necessary for determining qualification for the policy.

(4) Establishes a process to electronically certify the information
provided by the consumer.

(5) Maintains safeguards to ensure that consumer information
transmitted through that Internet Web site is secure.

(6) Provides the physical address of the producer and the
telephone number and e-mail of the producer.

(7) Provides the contact information for the Consumer Services
Division of the begin delete Department of Insurance. end delete begin insert department. end insert

(8) Adheres to any other rules and regulations adopted by the
Department of Insurance to promote the purposes of this section
and Section 11629.86.

(9) Notifies the consumer that if he or she does not qualify for
the low-cost automobile insurance policy that other policies may
be available from producers or insurers. Directs the consumer to
the begin delete Department of Insurance’s end delete begin insert department’s end insert auto insurance
premium comparison Internet Web page.

(d) The Internet Web site shall not be made available to the
public until the commissioner has made a determination that it
adequately provides all of the necessary information a consumer
would need in order to apply to purchase the policy.

(e) The Internet Web site shall be constructed to authorize the
begin delete plan-certified producer end delete begin insert consumer end insert to forward the application,
supporting documents, and the begin delete applicant’s end delete begin insert consumer’s end insert certification
to the plan.

(f) The Internet Web site shall accept payment by credit or debit
card or other form of electronic payment the begin delete Department of
Insurance end delete begin insert department end insert determines to be appropriate. It shall also
provide a mechanism for payment by check.

(g) The Internet Web site shall be made available in English
and Spanish and in as many additional languages as feasible. The
English and Spanish language sites shall be made available to the
public as soon as possible, irrespective of whether other versions
are finalized.

begin delete

(h) Notwithstanding any provision of Chapter 2 (commencing
with Section 10290) of Part 2 of Division 2 of the Public Contract
Code, if the plan chooses to contract with an entity to establish
and maintain the Internet Web site, the plan shall solicit and
consider the contract via an open, competitive bid process;
however, it shall not issue a request for proposals until the
Department of Insurance has approved the request. The contract
period shall not extend more than three years. Twelve months
before the expiration of the contract, the plan shall determine
whether to renew the contract or solicit bids for a new contract.

(i)

end delete

begin insert (h) end insert  The plan may request, and the begin delete Department of Insurance end delete
begin insert department end insert may include in its plan submitted pursuant to Section
11629.85, that up to one hundred thousand dollars ($100,000) from
the department’s existing consumer outreach fund be made
available for the development of the Internet Web begin delete Site. end delete begin insert site.
Electronic signatures shall have the same effect as pen-on-paper
signatures for the purposes of this program. The staff answering
the plan’s toll-free telephone number may transfer the consumer
directly to a producer who may sell a policy to the consumer. end insert

begin insert

(i) The plan and an insurance carrier shall establish a data
system whereby renewed policies, policy cancellations, and
nonrenewals can be tracked, both by aggregate numbers and by
individual consumer. The department shall have access to both
the aggregate and individual consumer data for research and
outreach purposes.

end insert