§ 23-2-4-16 — Termination of bankrupt home; payments to residents from fund; subrogation rights of board

Indiana § 23-2-4-16

• Jurisdiction: Indiana
• Title 23: BUSINESS AND OTHER ASSOCIATIONS
• Art. 2: SECURITIES AND FRANCHISES
• Ch. 4: Supervision of Continuing Care Contracts

Text

(a) If a continuing care retirement community
is bankrupt and the operation of the continuing care retirement
community is terminated, the board of directors shall, subject to the
approval of the commissioner, distribute from the guaranty association
fund established in section 13 of this chapter to the living residents of
the continuing care retirement community an aggregate amount not to
exceed one-half (1/2) of the amount in the fund at the time of
disbursement. The amount each living resident is entitled to receive
shall be prorated, based on the total amount paid on behalf of the
resident by the contracting party under the continuing care agreement.
In no event may the amount paid to an individual resident under this
section exceed the total amount paid on behalf of that resident under
the continuing care agreement, less the total value of services received
under the agreement.
(b) Any living resident of the continuing care retirement community
shall, if the resident executed a continuing care agreement before July
1, 2009, be eligible to receive distributions under subsection (a),
regardless of whether any contribution to the guaranty association fund
has been made on behalf of the resident.
(c) A resident compensated under this section assigns the resident's
rights under the continuing care agreement, to the extent of
compensation received under this section, to the board of directors on
behalf of the fund. The board of directors may require an assignment
of those rights by a resident to the board, on behalf of the fund, as a
condition precedent to the receipt of compensation under this section.
The board of directors, on behalf of the fund, is subrogated to these
rights against the assets of a bankrupt or dissolved provider. Any
monies or property collected by the board of directors under this
subsection shall be deposited in the fund.
(d) The subrogation rights of the board of directors, on behalf of the
fund, have the same priority against the assets of the bankrupt or
dissolved provider as those possessed by the resident under the
continuing care agreement.
As added by Acts 1982, P.L.145, SEC.1. Amended by
P.L.234-1985, SEC.4; P.L.153-2009, SEC.13; P.L.160-2015,
SEC.1.