[§346-157]  Liability insurance coverage; no
requirement.  (a)  For the purpose of this section, "liability
insurance coverage" means a general casualty insurance policy issued to a
provider insuring against legal liability for injury resulting from negligence
to a child during the time the child is under the care of the child care
provider.



(b)  The department shall not require a
provider to obtain or maintain liability insurance coverage as a condition of
licensure, temporary permission, or registration to operate a child care
facility.



(c)  The department, as a condition of
continued licensure, temporary permission, or registration, shall require a
provider who does not have liability insurance coverage to disclose in writing
that the provider does not have coverage to each parent or guardian:



(1)  Applying to have a child cared for at the
provider's facility, if the provider has no liability insurance coverage at the
time of application; or



(2)  Within seven working days of cancellation or
termination of liability insurance coverage if the coverage is canceled or
terminated while the parent's or guardian's child is cared for at the
provider's facility.



(d)  The department may suspend or revoke a
license, temporary permit, or certificate of registration of a provider in
accordance with section 346-164 or 346-175, if the provider or any employee of
the provider knowingly makes a false statement to any person concerning the
provider's liability insurance coverage. [L 1986, c 298, §1]