§ 23-59-6 - Resident's contract.
SECTION 23-59-6
§ 23-59-6 Resident's contract. – (a) In addition to other provisions considered proper to effect the purpose ofany continuing care contract, each contract executed on or after June 18, 1987shall:
(1) Provide for the continuing care of only one resident, orfor two (2) or more persons occupying space designed for multiple occupancy,under appropriate rules established by the provider.
(2) Show the value of all property transferred, includingdonations, subscriptions, fees, and any other amounts paid or payable by, or onbehalf of, the resident or residents.
(3) Specify all services which are to be provided by theprovider to each resident including, in detail, all items that each residentwill receive and whether the items will be provided for a designated timeperiod or for life and the estimated current monthly cost to the provider forproviding the care. Such items may include, but are not limited to, food,shelter, nursing care, drugs, burial, and incidentals.
(4) Describe the physical and mental health and financialconditions, if any, upon which the provider may require the resident torelinquish his or her space in the designated facility.
(5) Describe the physical and mental health and financialconditions required for a person to continue as a resident.
(6) Describe the circumstances under which the resident willbe permitted to remain in the facility in the event of financial difficultiesof the resident.
(7) State:
(i) The current fees that would be charged if the residentmarries while at the designated facility;
(ii) The terms concerning the entry of a spouse to thefacility; and
(iii) The consequences if the spouse does not meet therequirements for entry.
(8) Provide that the provider shall not cancel any continuingcare contract with any resident without good cause. Good cause shall be limitedto:
(i) Proof that the resident is a danger to himself, herself,or others;
(ii) Nonpayment by the resident of a monthly or periodic fee;
(iii) Repeated conduct by the resident that interferes withother residents' quiet enjoyment of the facility; or
(iv) Persistent refusal to comply with reasonable writtenrules and regulations of the facility. If a provider seeks to cancel a contractand terminate a resident's occupancy, the provider shall give the residentwritten notice of, and a reasonable opportunity to cure within a reasonableperiod, whatever conduct is alleged to warrant the cancellation of theagreement. Nothing herein shall operate to relieve the provider from dutiesunder chapter 18 of title 34 when seeking to terminate a resident's occupancy.
(9) Provide in clear and understandable language, in print nosmaller than the largest type used in the body of the contract, the termsgoverning the refund of any portion of the entrance fee and the terms underwhich entrance fees can be used by the provider.
(10) State the terms under which a contract is cancelled bythe death of the resident. The contract may contain a provision to the effectthat, upon the death of the resident, the money paid for the continuing care ofthe deceased resident shall be considered earned and become the property of theprovider. When more than one individual shares a residential unit, the contractshall set forth the effect that the death of one resident will have on theagreement between the other resident or residents and the provider.
(11) Provide for at least thirty (30) days' advance notice tothe resident, before any change in fees, charges, or the scope of care orservices may be effective, except for changes required by state or federalassistance programs.
(12) Provide that charges for care paid in one lump sum shallnot be increased or changed during the duration of the agreed upon care, exceptfor changes required by state or federal assistance programs.
(b) A resident shall have the right to rescind a continuingcare contract, without penalty or forfeiture, within seven (7) days aftermaking an initial deposit or executing the contract. A resident shall not berequired to move into the facility designated in the contract before theexpiration of that seven (7) day period.
(c) If a resident dies before occupying the facility, or isprecluded through illness, injury, or incapacity from becoming a resident underthe terms of the continuing care contract, the contract is automaticallyrescinded, and the resident or his or her legal representative shall receive afull refund of all money paid to the provider, except those costs specificallyincurred by the provider at the request of the resident and set forth inwriting in a separate addendum, signed by both parties to the contract.
(d) No standard continuing care contract form shall be usedin this state until it has been submitted to the department. If the departmentdetermines that the contract does not comply with the provisions of thischapter, it shall have the right to take action pursuant to § 23-59-16 toprevent its use. The failure of the department to object to or disapprove ofany contract shall not be evidence that the contract does or does not complywith the provisions of this chapter. However, individualized amendments to anystandard form need not be filed with the department.