(a) The commissioner requires that authorities shall obtain insurance protection at the lowest premium cost consistent with proper safety and full protection, and will approve only policies of insurance that measure up to these standards.

(b) The cost of insurance has a direct bearing on rent charges and on amount of subsidy required from State. Accordingly, all possible savings should be effected in purchasing insurance for projects. In this connection it is required that bids be obtained from all types of insurance carriers and from various insurance company groups, in order to determine which offers lowest net cost. Whenever possible, a minimum of six quotations of premium cost shall be obtained, three from stock and three from mutual carriers. Each premium quotation shall be from a different source. In all cases, only nonassessable insurance carriers will be acceptable as meeting requirements of Division of Housing. Each quotation shall include breakdown of rating data used in computing bid.

(c) The authority shall analyze and evaluate quotations of cost received in accordance with above subdivision, and forward quotations together with their recommendations and analysis, and a summary of replies to invitations to bid, to Division of Housing for review and approval. Written approval by Division of Housing is necessary.