Sec. 262.2. Applicability; general requirements

(a) This Part shall apply to any policy that includes legal services insurance issued or delivered in this State, or issued or delivered by an authorized insurer on risks or operations in this State, on or after April 1, 1999.

(b) No policy that includes legal services insurance may be issued or delivered except by an insurer authorized to write such insurance and as provided in this Part.

(c) Notwithstanding any other provision of this Part, legal services insurance may be issued or delivered only:

(1) as part of a prepaid legal services plan, provided, however, that not more than an incidental amount of the premium with respect to the plan shall be attributable to legal services for defense-only coverages for commercial or other business related lawsuits or arbitration proceedings commenced against the business entity that purchased the policy; or

(2) as part of a policy of liability insurance covering related risks, provided, however, that legal services for defense-only coverages for commercial or other business related lawsuits or arbitration proceedings commenced against the business entity that purchased the policy is not more than an incidental part of such liability insurance.

(d) No policy may provide coverage that would be against the public policy of this State.