§ 58-64-25. Contract for continuing care; specifications. - North Carolina Statutes

§58‑64‑25.  Contract for continuing care; specifications.

(a)        Each contract forcontinuing care shall provide that:

(1)        The partycontracting with the provider may rescind the contract within 30 days followingthe later of the execution of the contract or the receipt of a disclosurestatement that meets the requirements of this section, and the resident to whomthe contract pertains is not required to move into the facility before theexpiration of the 30‑day period; and

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

(3)        For rescinded orcanceled contracts under this section, the resident or the resident's legalrepresentative shall receive a refund of all money or property transferred tothe provider, less (i) periodic charges specified in the contract and applicableonly to the period a living unit was actually occupied by the resident; (ii)those nonstandard costs specifically incurred by the provider or facility atthe request of the resident and described in the contract or any contractamendment signed by the resident; (iii) nonrefundable fees, if set out in thecontract; and (iv) a reasonable service charge, if set out in the contract, notto exceed the greater of one thousand dollars ($1,000) or two percent (2%) ofthe entrance fee.

(b)        Each contract shallinclude provisions that specify the following:

(1)        The totalconsideration to be paid;

(2)        Services to beprovided;

(3)        The procedures theprovider shall follow to change the resident's accommodation if necessary forthe protection of the health or safety of the resident or the general andeconomic welfare of the residents;

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

(5)        The terms governingthe refund of any portion of the entrance fee in the event of discharge by theprovider or cancellation by the resident;

(6)        The policy regardingincreasing the periodic fees;

(7)        The description ofthe living quarters;

(8)        Any religious orcharitable affiliations of the provider and the extent, if any, to which theaffiliate organization will be responsible for the financial and contractualobligations of the provider;

(9)        Any property rightsof the resident;

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

(11)      Any requirement, ifany, that the resident apply for Medicaid, public assistance, or any publicbenefit program. (1989, c. 758, s. 1; 1991, c. 196, s. 4.)