SENATE BILL REPORT

SB 6587

BYSenators von Reichbauer and Moore

Creating a risk management pool for claims against child care providers.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 2, 1988

Majority Report:  Do pass and refer to Committee on Ways & Means.

      Signed by Senators von Reichbauer, Chairman; West, Vice Chairman; Johnson, Kreidler, Moore, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 2, 1988

BACKGROUND:

Child care providers have experienced difficulty in obtaining liability insurance due to the high cost and the lack of availability of that type of coverage.  It has been suggested that the establishment of a fund to insure child care providers against large claims would help improve the affordability and availability of liability insurance for child care providers.

SUMMARY:

The State Risk Manager is required to establish a risk management pool to cover liability claims against child care providers in excess of $50,000.  The pool is funded by assessments against child care providers who elect to participate in the pool and any appropriations made by the Legislature.

The Risk Manager is required to establish a mandatory continuing education program for child care providers participating in the pool.  The continuing education program must be designed to increase safety and reduce the risk of accidents.

Appropriation:    The sum of $5 million is appropriated from the general fund to the child care revolving fund for the biennium ending June 30, 1989.

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Janet Sahler, Washington State Family Child Care (for)