§ 523D.6 — Contracts

Iowa § 523D.6

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523D: RETIREMENT FACILITIES

Text

1. Disclosure. In addition to any other provisions prescribed by rules adopted under this
chapter,eachcontractprovidingforcontinuingcareorsenioradultcongregatelivingservices
by a provider shall be written in nontechnical language easily understood by a lay person and
shall include all of the following:
a. The name and business address of the provider.
b. The name and address of the facility or facilities, or of the program.
c. If a prospective resident elects to reside in housing at the facility of a provider, the
identification of the living unit which the prospective resident will occupy.
d. A description of the total consideration paid by the resident, including the value of all
property transferred.
e. A list of all of the continuing care or senior adult congregate living services which are
to be provided by the provider to each resident. The list shall clearly identify the manner in
which continuing care or senior adult congregate living services will be provided, including
a statement whether the items will be provided for a designated time period or for life, and
shall indicate which continuing care and senior adult congregate living services, if any, will
be provided through an affiliate or third party. The description of any service charges or fees
shall, in the event of multiple residents, be provided on an individual basis and shall include
a description of any additional charges that will be assessed for occupancy by more than one
resident.
f. A statement of the policy of the facility or program with regard to any health or financial
conditionsuponwhichtheprovidermayrequiretheresidenttorelinquishtheresident’sspace
in the designated facility or program.
g. A statement of the policy of the facility or program with regard to the health and
financial conditions required for a person to continue as a resident or an enrollee in a
program.
h. A statement of the policy of the facility or program with regard to the conditions under
which the resident is permitted to remain in the facility or program in the event of financial
difficulties affecting the resident.
i. A statement of the terms concerning the entry of a person to the living unit and the
consequences if a person does not meet the requirements for entry.
j. A statement of the policy of the facility or program with regard to changes in
accommodations and a description of the procedures to be followed by the provider when
the provider temporarily or permanently changes the resident’s accommodations within the
facility or program, transfers the resident from one level of care to another, or transfers the
resident to another health facility or program.
k. A description in clear and understandable language, in at least ten point type, of the
terms governing the refund of any portion of the entrance fee in the event of discharge by the
provider, or cancellation by the resident, and a statement that the provider shall not dismiss
ordischargearesidentfromafacilityorprogrampriortotheexpirationofaresidentcontract
without just cause and sixty days’ written notice of intent to cancel. The notice of dismissal or
discharge shall only be given upon a good-faith determination that just cause exists, and the
notice shall be given in writing, signed by the medical director, if any, and the administrator
of the facility or program. In an emergency situation only such notice as is reasonable under
the circumstances is required.
l. A description in clear and understandable language, in at least ten point type, whether
monthly fees, if charged, are subject to periodic increases.
m. A description of the facility’s or program’s policies and procedures for handling
grievances between the provider and residents.
n. A statement that residents living in the facility have the right of self-organization.
o. A statement that a prospective resident or resident shall be given the opportunity to
§523D.6, RETIREMENT FACILITIES 8
appoint a personal representative in the prospective resident’s or resident’s contract. The
personal representative shall receive copies of the contract and all notices, disclosures,
or forms required by this chapter to be delivered to a prospective resident or resident. A
personal representative appointed under this section has no legal authority to make any
decision for the prospective resident or resident appointing the person to be a personal
representative. The personal representative may advise the prospective resident or resident
as to the materials provided. A personal representative shall not be affiliated or associated
with a provider or any person identified in section 523D.3, subsection 1, paragraph “b” or
“c”, and shall not be a prospective resident or resident.
p. A statement that if a resident dies or through illness, injury, or incapacity is precluded
from becoming a resident under the terms of the contract before occupying the living unit,
or precluded from commencing a continuing care services program under the terms of the
contract, the contract is automatically rescinded and the resident or the resident’s legal
representative shall receive a full refund of all payments of money or transferred property
to the facility or program, except those costs specifically incurred by the facility or program
at the request of the resident or program enrollee and set forth in writing in a separate
addendum, signed by both parties to the contract.
q. A statement that a resident has the right to rescind a contract for continuing care or
senior adult congregate living services, without penalty or forfeiture, within three business
days of the date the contract was executed or within thirty days after the date the resident
received the disclosure statement required by section 523D.3, whichever is later.
2. Cancellation. The contract required by this section shall state the terms under which
the contract can be canceled by the provider, the resident, or a program enrollee, including
a statement of the refund rights of a resident, or a program enrollee, and shall include a
completed, easily detachable form in duplicate, captioned “Notice of Cancellation”, as an
attachment, in ten point boldface type, containing the following information and statements
in substantially the following form and language:
NOTICE OF CANCELLATION
................................
Date contract was executed.
................................
Date disclosure statement was provided
to resident or program enrollee.
You may rescind and cancel your contract, without any penalty
or obligation, within three business days of the date the contract
was executed or within thirty days after the date you received
the disclosure statement required by Iowa Code section 523D.3,
whichever is later. You are not required to move into the facility
or commence continuing care services from the program before
the expiration of this cancellation period. However, if you do,
the provider may retain the reasonable value of care and services
actually provided to you, the resident, prior to your vacating the
provider’s facility or terminating continuing care services from the
program. If you cancel this contract and you have already moved
into the provider’s facility, you must vacate your living unit within
ten days after receipt by the provider of your cancellation notice.
If you cancel this contract, any payments of money or transfers
of property you made to the provider must be returned as soon
as reasonably possible by the provider following receipt by the
provider of your cancellation notice, and any security interest
arising out of the transaction is canceled, except that, as stated
above, the provider may retain the reasonable value of care
and services actually provided to you prior to your vacating the
provider’s facility or terminating continuing care services from the
program.
9 RETIREMENT FACILITIES, §523D.8
To cancel this contract, mail by certified mail or hand deliver
a signed and dated copy of this cancellation notice or any other
written notice clearly indicating your intent to cancel the contract,
or send a telegram, to ................................ (name of provider)
at ................................ (address of provider’s place of business).
Your cancellation is effective upon mailing by certified mail, when
transmitted by telegraph, or when actual notice is given to the
provider, whichever is earlier.
I hereby cancel this contract.
........................
(Date)
................................................
(Resident’s signature)