The excessive claim that prompted the insurer's action was the $300,000 settlement that released Everlyse Cabrera's foster parents from a civil lawsuit rooted in her disappearance, Dolian said. Everlyse was 2 years old when she was reported missing on June 10, 2006, by her foster parents Vilma and Manuel Carrascal. The couple told police the girl had let herself out of the house sometime during the night. Everlyse remains a missing-persons case for North Las Vegas police.

United National paid the settlement to the U.S. District Court clerk's office in October. The $300,000 is being held in trust for Everlyse. Part of it will be used to pay attorney fees and the cost of hiring a private investigator to find the girl.

Clark County remains a defendant in the lawsuit.

Dolian said he and other county administrators are working on alternatives to the loss of United National. The county might negotiate for services with another company. The county might consider creating a self-insurance plan for foster parents.

"No one really knows what impact this will have," Dolian said. "We've been working hard as a department to build up the foster parent program. This isn't good, but how negative the impact will be nobody knows."

Clark County is the only entity in Nevada that offers such coverage to foster parents, Dolian said. United National has provided coverage for county foster parents since 2004. The premium cost about $100,000 a year and covered between 800 to 900 foster parents.

"The one settlement equaled about three years of premiums," Dolian said.

Dolian said Family Services staff is concerned that the loss of insurance might prompt people to withdraw from foster parenting. That will be tracked through the number of children surrendered by foster parents back to Family Services and the number of foster parents who decline to renew their licenses.

Marsha Simms, a foster parent and president of the Foster Care Association of Nevada, said she is unsure that the loss of liability insurance will be a substantial blow.

"A lot of foster parents don't even know they have insurance," Simms said.

Others, like herself, extended their homeowner's insurance policy when they became foster parents.

Gary Peck, executive director of Nevada's American Civil Liberties Union, has been working with county officials to reduce the population at Child Haven, the emergency shelter for abused and neglected children. This development might undo the progress that has been made in increasing foster care and phasing out group care, Peck said.

It's just one more obstacle to getting people signed up and in the foster parent program," Peck said.

Contact reporter Lisa Kim Bach at lbach@reviewjournal.com or (702) 383-0287.