§ 44–151.06. Contract for continuing care; specifications.

(a) Each contract for continuing care shall provide that:

(1) The resident may rescind the contract within 30 days following the execution of the contract or the receipt of a disclosure statement that meets the requirements of this chapter, whichever is later, and the resident to whom the contract pertains shall not be required to move into the facility before the expiration of the 30-day period;

(2) If a resident dies before occupying a living unit in the facility, or if, on account of illness, injury, or incapacity, a resident would be precluded from occupying a living unit in the facility under the terms of the contract for continuing care, the contract shall be automatically canceled; and

(3) Except as provided in paragraph (4) of this subsection, for rescinded or canceled contracts under this chapter, the resident or the resident’s legal representative shall receive a refund of all money or property transferred to the provider, less:

(A) Periodic charges specified in the contract and applicable only to the period a living unit was actually occupied by the resident;

(B) Those nonstandard costs specifically incurred by the provider or facility at the request of the resident and described in the contract or any contract amendment signed by the resident;

(D) A reasonable service charge, if set forth in the contract, not to exceed the greater of $1,000 or 2% of the entrance fee; and

(4) A provider shall not deduct from a refund due for a rescinded or canceled contract non-refundable fees set forth in the rescinded or canceled contract or any service charge if the contract performance by the resident becomes impossible due to death or morbidity, and the resident did not occupy a living unit in the facility.

(b) Each contract shall include provisions that specify the following:

(1) The total consideration to be paid;

(2) Services to be provided and whether there shall be additional charges for services not included in the monthly fees;

(3) The procedures the provider shall follow to change the resident’s accommodation if necessary for the protection of the health or safety of the resident or the general and economic welfare of the residents and the procedures the resident can use to contest the provider’s decision to change the resident’s accommodations;

(4) The policies to be implemented if the resident cannot pay the periodic fees;

(5) The terms governing the refund of any portion of the entrance fee if there is a discharge by the provider or cancellation by the resident;

(6) The policy regarding increasing the periodic fees;

(7) The description of the living quarters;

(8) Any religious or charitable affiliations of the provider and the extent, if any, to which the affiliate organization shall be responsible for the financial and contractual obligations of the provider;

(9) Any property rights of the resident, including the right, if any, to an equity interest in the property;

(10) The policy, if any, regarding fee adjustments if the resident is voluntarily absent from the facility;

(11) A requirement, if any, that the resident have Medicare, Medicare supplement, or other medical or long-term care insurance apply for Medicaid, public assistance, or any public benefit program;

(12) The policy of ownership of pets;

(13) A requirement, if any, that the resident have Medicare, Medicare supplement, or other medical or long-term care insurance;

(14) The procedures the residents shall follow to file a grievance and the procedures the provider shall follow to resolve the grievance and that the resident shall not be subject to retaliatory action for filing a grievance; and

(15) The right of residents to bring a civil action to recover for injury resulting from violations of this chapter and its regulations.

(c) If a resident’s continuing care agreement provides for assisted living services and, if the provider does not have an assisted living bed available at the facility when the resident needs the promised care, the provider shall provide the assisted living services the resident needs:

(1) At the same rate the resident would have to pay if an assisted living bed was available; and

(2) At the provider’s option:

(A) In the resident’s independent living unit; or

(B) In a nearby licensed assisted living facility.

(d) If a resident’s continuing care agreement promises the provider shall provide the resident with comprehensive nursing care services if the resident needs them and, if the provider does not have a nursing care bed available when the resident needs the promised care, the provider shall provide the nursing care services needed as follows:

(1) At the same rates a resident would have paid if a nursing bed were available; and

(2) At the provider’s option:

(A) In the resident’s independent or assisted living unit; or

(B) In a nearby licensed comprehensive care facility.

(e) A provider shall pay any contractual entrance fee refund due under a continuing care agreement to which it is a party within 60 days of the agreement being terminated by a resident’s election or death if, on the termination date, the unit has been occupied by or reserved for another resident who has paid an entrance fee.

(f) The resident’s continuing care contract shall permit the resident to identify the resident’s estate or the person or persons to whom payment shall be made if a refund is due by reason of the resident’s death.