[§321-11.7  Care homes; liability insurance; coverage.]  (a)  All operators of adult foster homes under section 321-11.2 and adult residential care homes, assisted living facilities, and expanded adult residential care homes as defined in section 321-15.1 shall obtain and maintain liability insurance with respect to their operation of the homes or facilities in a coverage amount deemed sufficient by the department.

     This section shall not apply to operators of adult foster homes, adult residential care homes, assisted living facilities, and expanded adult residential care homes that:

     (1)  Are operating under a contract with the department of human services or the department of health; and

     (2)  Are in compliance with the liability insurance coverage requirements of that contract.

     (b)  The department shall adopt rules pursuant to chapter 91 to effectuate the purposes of this section. [L 2012, c 266, §1]