An Act To Ensure Adequate Insurance Coverage for Family Child Care Providers
Maine Legislature, Session 124, LD 0896
Committee Amendment CA_A_H214 (House)
Amends: 24-A MRSA §3060

COMMITTEE AMENDMENT ,A " to H.P. 614, L.D. 896, Bill, "An Act To 
Ensure Adequate Insurance Coverage for Family Child Care Providers" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §3060 is enacted to read: 
§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. 
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; 
B. The policy issued by the insurer expressly excludes that loss or damage arising 
from the family child care business activity; 
COMMITTEE AMENDMENT 
~lj. ~. 
COMMITTEE AMENDMENT "4,, to H.P. 614, L.D. 896 
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 
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. 
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.' 
SUMMARY 
This amendment replaces the bill. As in the bill, the amendment prohibits an insurer 
from refusing to issue or renew or ·from cancelling a homeowner's policy if the insured 
can demonstrate satisfactory evidence of liability coverage for the operations of the 
family child care business. The amendment proposes language to conform to existing 
language used in the Maine property insurance cancellation control laws. 
The amendment makes it clear that insurers issuing homeowners policies are not 
liable under those policies for losses arising out of the family child care business unless 
coverage is specifically provided under the policy or a rider providing business liability 
coverage. 
The amendment also clarifies the circumstances under which a property 
insurer has no duty to defend or indemnify a family child care provider who has obtained 
business liability coverage for the operations of the family child care business. The 
amendment requires the insurer to disclose to family child care providers that the failure 
to maintain separate insurance coverage for business liability may result in the 
cancellation or nonrenewal of the homeowners insurance policy. 
The amendment removes the provision in the bill that prohibited an insurer from 
restricting coverage under any rider for a family child care provider based on the number 
of children cared for in the home except as provided in the family child care provider's 
certification. 
COMMITTEE AMENDMENT 
J 
:jl 
) 
) 
.') 
I 
"',. 
('--''. 
( 
\ 
( 
--_ ..• -' 
Approved: 04/17/09 Mac 
LD896 
LR 1393(02) 
An Act To Ensure Adequate Insurance Coverage for Family Child Care Providers 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Insurance and Financial Services 
Fiscal Note Required: No 
Fiscal Note 
No fiscal impact 
LR1393(02) - Fiscal Note - Page 1 of 1