The Region - News from Sept. 20, 1985

A judge’s refusal to stop an insurance company from canceling thousands of policies for family day-care centers could force many of those centers out of business, according to an attorney for the California Federation of Family Day Care Assns. Los Angeles Superior Court Judge Norman R. Dowds denied the federation’s request for an order that would have forced Los Angeles-based Mission Insurance Co. to continue policies currently in effect or cancel them only on 60-days notice. Mission, California’s primary insurer for day-care homes, will cancel about 4,000 policies by the end of September, Barrett S. Litt, the federation’s lawyer, said. More than a third of the facilities, which care for children from low-income families, will go out of business, Litt said. Nearly a third more will be forced to operate without insurance, he added. “There is an excellent chance” that Dowd’s ruling will be appealed, the attorney said.