§ 11-49-103 — Withdrawal or dismissal of person - refund

(1) If an agreement
permits withdrawal or dismissal of a resident from a life care institution prior to the
expiration of the agreement, with or without cause, an amount equal to the
difference between the amount paid in and the amount used for the care of the
resident during the time the resident remained in the institution, based upon the per
capita cost to the institution as determined in a manner acceptable to the
commissioner, shall be refunded to the resident; but in cases where a consideration
greater than the minimum charge has been paid for accommodations above
standard, a sum equal to the difference between the amount paid in and the ratio of
the amount paid to the minimum consideration for standard accommodations times
the current per capita cost to the institution applied to the period the resident
remained in the institution shall be refunded to the resident. If the per capita cost to
the institution during the period cannot be established otherwise, the cost during
the period is deemed to be the cost at the time of the withdrawal or dismissal. As
used in this section, for refund purposes, cost includes a reasonable profit to the
provider.

(2) If the provider is an organization described in section 501 (c)(3) of the
federal Internal Revenue Code of 1986, as amended, and exempt from income
taxation under section 501 (a) of the federal Internal Revenue Code of 1986, or
has a policy not to terminate a resident's life care contract due to the inability to
pay if the resident is otherwise compliant with the life care contract, the provider is
entitled to make a refund according to a schedule provided in its agreement with
the resident so long as the schedule provides for amortization of the amount paid
by the resident over a period of not less than sixty months or over the life
expectancy of the resident if the expectancy is less than sixty months. In such case,
the refund may be delayed for a reasonable period thereafter until the securing by
the provider of a substitute fee from another resident or prospective resident. The
provider may also deduct from any such refund amounts due it from the resident for
damage done or for any other legitimate offsetting item.

Legislative History

Source: L. 2017: Entire article added with relocations, (SB 17-226), ch. 159, p. 569, � 1, effective August 9. L. 2024: (1) amended, (HB 24-1381), ch. 350, p. 2389, � 60, effective August 7. L. 2025: (2) amended, (HB 25-1184), ch. 210, p. 947, � 2, effective August 6.