Thank you Bright for checking with your broker. I also contacted State yesterday and dealt with Management as my original broker no longer works there. The Manager was thrown for a loop by what I was told by this previous broker and he said no such rules apply. He is looking into why I was given the information. Luckily it hasn't affected me so far as so many of my families had 2nd and 3rd children so the flow was okay over the years. I also feel dumb dumb because it has taken me a while to learn all the rules about licensed through an agency and private daycare differences. Basically this guy was giving me rules for agencies and i should have realized it at the time but I felt lucky to have found insurance, as my original home insurance company booted me off due to daycare. I called many companies and got a lot of 'no's, or very high rates. State's rates for me are same as yours. I wasn't aware of this Forum at the time to ask and that was the biggest downfall! Live and learn late sometimes... glad i've finally clued in. duh me.