SENATE BILL REPORT

SB 6586

BYSenators Moore and von Reichbauer

Requiring insurers to offer installment payments for child care insurance.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1988

Senate Staff:Walt Corneille (786-7416)

AS OF FEBRUARY 1, 1988

BACKGROUND:

Insurance premiums for day care service providers has increased substantially in recent years.  Often the premium for day care insurance must be paid in a lump sum for year of coverage.  It has been suggested that if day care providers were able to pay the annual premiums in installments, it would make the insurance coverage easier to obtain.

SUMMARY:

Insurers which offer coverage for people and organizations providing child care services must accept payment of premiums in at least quarterly installments.  Insurers are permitted to charge a reasonable flat fee for additional administrative costs involved in accepting installment payments.  Insurers are required to notify child care providers of the installment payment option.

Child care insurance includes insurance coverage for the legal liability which may be experienced as a result of negligence or malpractice in rendering professional services by a licensed day care facility.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested