§3060. Insurance coverage for family child care providers








1. Evidence of business liability insurance. 
An insurer may not refuse to issue or renew a policy covering the primary residence
of a family child care provider certified under Title 22, section 8301-A, subsection
3 or cancel such policy within the first 90 days of coverage unless the denial of
coverage or cancellation is based solely on underwriting factors other than the presence
of a family child care business on the premises if the family child care provider
has demonstrated satisfactory evidence that the child care business is covered by
separate insurance coverage for business liability, including medical payments coverage
equivalent to coverage in the policy. For purposes of cancellation or nonrenewal
under section 3049 or 3051, an insurer may not treat the presence of the family child
care business activity as a factor related to the insurability of the primary residence
of a family child care provider certified under Title 22, section 8301-A, subsection
3 if the family child care provider has demonstrated satisfactory evidence that the
child care business is covered by separate insurance coverage for business liability
in accordance with this subsection.


[
2009, c. 185, §1 (NEW)
.]








2. No liability under property insurance policy. 
An insurer has no duty to defend or indemnify a family child care provider certified
under Title 22, section 8301-A, subsection 3 under a policy covering the primary residence
of a family child care provider issued by the insurer if:





A. The loss or damage for which the family child care provider is liable or alleged to
be liable arises in whole or in part from the family child care business activity; [2009, c. 185, §1 (NEW).]










B. The policy issued by the insurer expressly excludes that loss or damage arising from
the family child care business activity; [2009, c. 185, §1 (NEW).]










C. The family child care provider has demonstrated satisfactory evidence of separate
insurance coverage for child care business liability in accordance with subsection
1; and [2009, c. 185, §1 (NEW).]










D. The insurer issuing the policy covering the primary residence has disclosed to the
family child care provider that failure to maintain separate insurance coverage for
child care business liability might result in cancellation or nonrenewal of the policy
covering the primary residence and that the child care business activity is excluded
under the policy. [2009, c. 185, §1 (NEW).]







[
2009, c. 185, §1 (NEW)
.]








3. Effect of cancellation or nonrenewal of business liability policy. 
If a family child care provider has demonstrated satisfactory evidence of separate
insurance coverage for child care business liability to the insurer as provided in
subsection 2, paragraph C, the insurer issuing the policy covering the primary residence
continues to have no duty to defend if the insurance policy for child care business
liability is cancelled or nonrenewed during the term of the policy covering the primary
residence.


[
2009, c. 185, §1 (NEW)
.]





SECTION HISTORY

2009, c. 185, §1 (NEW).