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A BILL TO BE ENTITLED
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AN ACT
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relating to liability insurance requirements for daycare |
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facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.049, of the Human Resources Code, is |
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amended by amending Subsection (e) to read as follows: |
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Sec. 42.049. LIABILITY INSURANCE REQUIRED. (a) A license |
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holder shall maintain liability insurance coverage in the amount of |
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$300,000 for each occurrence of negligence. An insurance policy or |
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contract required under this section must cover injury to a child |
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that occurs while the child is on the premises of the license holder |
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or in the care of the license holder. |
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(b) A license holder shall file with the department a |
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certificate or other evidence from an insurance company showing |
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that the license holder has an unexpired and uncancelled insurance |
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policy or contract that meets the requirements of this section. |
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(c) Should the license holder for financial reasons or for |
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lack of availability of an underwriter willing to issue a policy be |
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unable to secure the insurance required under Subsection (a) or |
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should the policy limits be exhausted, the license holder shall |
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notify the parent or a person standing in parental relationship to |
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each child for whom the license holder provides care a written |
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notice that the liability coverage is not provided and there will |
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not be a ground for suspension or revocation of the license holder's |
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license under this chapter. The license holder shall also notify |
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the department that the coverage is not provided and provide the |
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reason for same. In no case shall the inability to secure coverage |
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serve to indemnify the license holder for damages due to |
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negligence. |
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(d) The insurance policy or contract shall be maintained at |
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all times in an amount as required by this section. Failure by a |
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license holder to renew the policy or contract or to maintain the |
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policy or contract in the required amount is a ground for suspension |
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or revocation of the license holder's license under this chapter. |
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(e)
This section does not apply to a group day-care home or a
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listed or registered family home.
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