Liability insurance: Maintenance; notification of cancellation or nonrenewal.

Each group foster home, specialized foster home, independent living foster home and foster care agency shall carry liability insurance in the amounts appropriate for the protection of all concerned. No license may be issued until verification has been obtained that the policy is in force. If the liability policy is cancelled or not renewed, the director shall notify the licensing authority not less than 20 days before the effective date of cancellation or nonrenewal. Failure to maintain the insurance in force is a basis for the revocation of a license.