§ 17b-523 — (Formerly Sec. 17a-363). Continuing-care contract requirements.

(a) Each continuing-care contract shall provide: (1) That the party contracting with the provider may rescind the contract by notifying the provider in writing by registered or certified mail of such rescission within thirty days following the execution of the contract; that in the event of such rescission, any money or property transferred to the provider shall be refunded, less (A) those costs specifically incurred by the provider or facility at the request of the resident and described in the contract or in an addendum thereto signed by the resident; and (B) a reasonable service charge, not to exceed the greater of one thousand dollars or two per cent of the entrance fees; and, if applicable, that the resident to whom the contract pertains shall not be required to move into the facility before the expiration of the thirty-day period; (2) That if, after the thirty-day period, a resident dies before occupying a contracted-for living unit, or on account of illness, injury or incapacity is precluded from occupying a contracted-for living unit under the terms of the continuing-care contract, or a resident dies before the commencement of care under a continuing-care contract to provide care in such person's home, upon notice to the provider by registered or certified mail, the contract is automatically cancelled and the resident or the resident's legal representative shall receive a refund of all money or property transferred to the provider, less (A) those costs specifically incurred by the provider or facility at the request of the resident and described in the contract or in an addendum thereto signed by the resident; (B) a reasonable service charge not to exceed the greater of one thousand dollars, or two per cent of the entrance fee, and (C) if the contract includes occupying a living unit in a facility and the unit was actually available for occupancy, the usual monthly charge for that unit, prorated on a per diem basis, for the period beginning seven days after the execution of the contract and ending on the last day of the month in which the provider receives notice that the resident will not occupy the unit; (3) For contracts entered into after October 1, 2015, that if construction of the facility has not yet begun, construction will not begin until a minimum number of living units, which shall not be less than one-half of the units in the facility or fifty per cent of any designated part or parts thereof determined by the commissioner have been presold, and a minimum deposit of ten thousand dollars per unit for all presold units has been received by the provider. The requirements of this subdivision shall not apply to any continuing-care contract for the provision of care in a person's home. (b) Each continuing-care contract shall also specify: (1) The circumstances under which the resident will be permitted to continue to receive care and shelter in a facility or care at home with the right to future access to care and shelter in such facility and medical or nursing services or other health-related benefits, and other benefits under the continuing-care contract in the event of possible financial difficulties on the part of the resident; (2) The terms and conditions under which a contract for continuing care may be cancelled by the provider or by the resident; and the conditions, if any, under which all or any portion of the entrance fee will be refunded in the event of cancellation of the contract by the provider or by the resident or in the event of the death of the resident prior to or following occupancy of a living unit, provided for contracts entered into after October 1, 2015, any refund shall be delivered to the resident or the resident's estate not later than three years from the date the contract is terminated or when contractual conditions for releasing the refund have been met, whichever occurs first; (3) The conditions under which a living unit occupied by a resident may be made available by the provider to a different or new resident other than on the death of the original resident; (4) The manner in which the provider may adjust periodic charges or other recurring fees and the limitations of such adjustments, if any, including, but not limited to, for contracts entered into after October 1, 2015, no periodic charges or other recurring fees may be increased unless a resident has been provided not less than thirty days' advance written notice of such fee increase.

Legislative History

(P.A. 86-252, S. 4, 17; P.A. 90-159, S. 2; P.A. 08-36, S. 3; P.A. 15-115, S. 7.) History: P.A. 90-159 in Subsec. (a) required a minimum number of living units to be sold prior to construction of a facility to be completed in stages and a minimum deposit to have been received by the provider for all presold units prior to construction of any facility; Sec. 17-538 transferred to Sec. 17a-363 in 1991; Sec. 17a-363 transferred to Sec. 17b-523 in 1995; P.A. 08-36 amended Subsec. (a)(2) by adding provision re automatic cancellation of contract if resident dies before commencement of home care and making conforming changes, amended Subsec. (a)(3) by adding exemption for continuing-care contracts for care at home, and amended Subsec. (b)(1) to require each continuing-care contract to specify circumstances under which resident in financial difficulties who is receiving care at home can continue such care; P.A. 15-115 amended Subsec. (a)(3) to add “For contracts entered into after October 1, 2015”, replace provision re construction to be completed in stages with provision re 50 per cent of designated part or parts, delete provision re 5 per cent of entrance fee for presold units and delete “, whichever is less”, and amended Subsec. (b) to add provision re deadline for refunds for contracts entered into after October 1, 2015, in Subdiv. (2) and replace provision re statement that increases may be made at discretion of provider with provision re notice of increased periodic charges or other recurring fees for contracts entered into after October 1, 2015, in Subdiv. (4).