(a) Before the Authority may offer optional-limits basic residential earthquake insurance policies, the governing board must first certify that selling such insurance furthers the Authority's charge in Insurance Code Section 10089.10 to achieve maximum capacity for writing earthquake coverage. The sale by the Authority of any optional-limits basic residential earthquake insurance policies must be actuarially sound.

(b) The Commissioner finds that integrating the formerly separate optional-limits program that had been in operation from 1999 through 2007 with the base-limits program serves the public interest by permitting the two programs to be financed together at an expected overall saving and by simplifying the program for the Authority, participating insurers, and consumers. This integration renders the former maintenance of separate funds within the Authority unnecessary and inappropriate. Any inter-fund transfer obligation that may exist at the time of integration will cease to exist.