Except for any person or firm providing professional services of a research or training
nature, any person or firm rendering legal, architectural, engineering, or other professional
services to the department shall have and maintain during the period the services
are rendered a professional liability insurance policy or policies with a company
or companies authorized to do business in the state affording professional liability
coverage for the professional services rendered, in an amount deemed sufficient by
the department. The requirement for professional liability insurance set forth in this section may
be waived by the department, if the person or firm providing professional services
obtains and maintains an unexpired, irrevocable letter of credit, established pursuant
to chapter 675, in an amount not less than the minimum insurance coverage required
by the contract with the department. The letter of credit shall be solely for the benefit of the department and must
remain valid until 3 years after final acceptance of the project of which the professional
services were a part. The letter of credit shall be approved by the department comptroller and be payable
to the department as beneficiary upon presentment of a final judgment indicating liability
and awarding damages to be paid to the department by the professional service provider
or upon presentment of a settlement agreement signed by all parties. The letter of credit shall be nonassignable and nontransferable. The letter of credit shall be issued by any bank or savings association organized
and existing under the laws of this state or any bank or savings association organized
under the laws of the United States that has its principal place of business in this
state or has a branch office which is authorized under the laws of this state or of
the United States to receive deposits in this state.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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