1862-1864

INSURANCE CODE
SECTION 1862-1864




1862.  It is the intent of the Legislature in enacting this chapter
to assure the availability, stability, and affordability of liability
insurance for operators of day care in this state, and to provide
the residents of this state an adequate, safe, affordable, and
plentiful market of day care services.



1863.  Unless the provision or context otherwise requires, the
following definitions govern the construction of this chapter:
   (a) "Commissioner" means the Insurance Commissioner of this state.
   (b) "Net direct premiums" means gross direct premiums written on
liability insurance in this state, including the liability portion of
the multiperil policies and of automobile insurance policies, less
return premiums and any surplus premium deposits. "Net direct
premiums" shall not mean any reinsurance premiums or premiums for
ocean marine insurance.
   (c) "Insurer" means any person who undertakes to indemnify another
against loss, damage, or liability arising from a contingent or
unknown event, and shall include reciprocals and interinsurance
exchanges.
   (d) "Family day care provider" means those persons licensed
pursuant to Section 1596.78 or 1596.79 of the Health and Safety Code.




1864.  (a) On or before May 1 of each year, commencing in 1987, each
insurer engaged in writing child care liability insurance coverage
in this state shall submit to the commissioner a report of its
operations regarding child care liability claims experience for the
last preceding calendar year ending on December 31 on a form
furnished by the commissioner. Each report shall separately state the
following information for family day care homes, as defined in
Section 1596.78 of the Health and Safety Code, and licensed child
care centers, as defined in Section 1596.76 of the Health and Safety
Code:
   (1) Premiums earned.
   (2) Premiums written.
   (3) Number of claims.
   (4) Number of new claims during the reporting period.
   (5) Number of claims closed during the reporting period.
   (6) Number of claims outstanding at the end of the reporting
period.
   (7) Total losses incurred.
   (8) Total losses incurred as a percentage of premiums earned.
   (9) Total number of policies in force on the last day of the
reporting period.
   (10) Total number of policies canceled.
   (11) Total number of policies nonrenewed.
   (12) Net underwriting gain or loss.
   (13) Separate allocations of expenses for commissions, other
acquisition costs, general office expenses, taxes, licenses and fees,
and other expenses. The allocations required by this section shall
be made by dividing the company's total premiums earned for child
care liability insurance by its total premiums earned and applying
the ratio determined to the expenses reported in the company's annual
statement filed with the commissioner pursuant to Section 900.
   (b) The commissioner shall develop and issue reporting forms to
insurers at least 90 days prior to the due date of the reports
required pursuant to this section.
   (c) The Legislature finds that it is in the public interest of the
policyholders of this state that insurers writing child care
liability insurance permit remittance of premiums to occur on an
installment basis.
   (d) The information provided under this section pertaining to a
specified claim, insurance policy, or insurer shall be confidential
and shall only be revealed by the department on a nonspecific basis
as part of an aggregate report of claims or policies.