(1) General liability with limits of not less than two million dollars ($2,000,000) per occurrence for bodily injury and property damage liability combined. The policy shall include coverage for liabilities arising out of premises, operations, independent contractors, products, completed operations, personal and advertising injury and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom a claim is made or suit is brought subject to the EFL's limit of liability. The policy must include the State of California and its officers, agents, employees and servants as additional insureds, but only insofar as the operations under these regulations are concerned.

(2) Statutorily required workers' compensation and employer's liability coverage for all the EFL's employees who will be engaged in the Program, including special coverage extensions where applicable. Employer's liability limits of one million dollars ($1,000,000) shall be required.

(3) All insurance coverage must be in force for the complete term during which the EFL is enrolled as a PFL. If any insurance expires during this term, a new certificate must be received by the Authority at least ten (10) business days prior to the expiration of the insurance. The new insurance must still meet the terms required in this section.

(4) The PFL is responsible for ensuring that coverage will not be cancelled without thirty (30) days' prior written notice to the Authority.

(5) The PFL is responsible for any deductible or self-insured retention contained within the insurance program.

(6) In the event the PFL fails to keep in effect at all times the specified insurance coverage, the Authority, in addition to any other remedies it may have, may terminate the PFL's participation in the Program on the occurrence of that event, subject to the provisions set forth in these regulations.

(7) Any insurance required shall be primary, and not excess, to any other insurance carried by the Authority.

(1) Provide evidence of net worth in excess of five hundred thousand dollars ($500,000) and assets that exceed 0.5% of the assets under servicing pursuant to these regulations.

(2) Meet at least one of the following requirements:

(3) Describe successorship plans or agreements in the case the PFL ceases to operate.

(1) Consumer finance and, if applicable, coordination with home improvement contractors.

(2) Originating consumer loans, retail installment contracts or leases/service agreements in accordance with all applicable laws, unless applying to become a successor servicer.

(3) Underwriting consumer loans, unless applying to become a Successor Servicer.

(4) Servicing of the types of products the EFL will be providing.

(5) Quality control and management systems to evaluate and monitor the overall quality of the EFL's loan, retail installment contract, or lease/service agreement financing-related activities, including, where applicable, underwriting reviews and consumer complaint resolution processes.

(1) Organization and Good Standing. The EFL is duly organized and validly existing under the laws of the state of its organization and California with due power and authority to own its properties and to conduct its business as those properties are currently owned and whose business is presently conducted, and had at all relevant times, and has, the power, authority and legal right to participate in this Program.

(2) Due Qualification. The EFL is duly qualified to do business and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business will require those qualifications.

(3) Power and Authority. The EFL has the power and authority to execute and to carry out the terms of the Program.

(4) No Proceedings. There are no proceedings or investigations pending or threatened before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the EFL or its properties involving any of the following:

(5) Qualified Staff and Adequate Facilities. The EFL has trained and qualified employees and suitable facilities and operating systems for the performance of the underwriting, origination and servicing functions required to carry out the Program. Where an EFL is seeking to become a Successor Servicer, those requirements related to employees, facilities and operating systems shall be sufficient to carry out all servicing functions required to carry out the Program. The EFL must maintain a written disaster recovery plan that covers the restoration of the facilities and the backup and recovery of information in electronic data processing systems. Alternate processing facilities and systems are required to ensure continuous operations. The EFL shall allow the Authority, at no additional cost, to inspect its disaster recovery plan and facilities.

(6) Bad Acts. The EFL has established and shall maintain adequate internal audit and management control systems to guard against dishonest, fraudulent or negligent acts by employees and contractors involved in the origination process.