38.2-4905 - Resident's contract.
§ 38.2-4905. 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 theeffective date of this chapter shall:
1. Provide for the continuing care of only one resident, or for two or morepersons occupying space designed for multiple occupancy, under appropriateregulations established by the provider.
2. Show the value of all property transferred, including donations,subscriptions, fees and any other amounts paid or payable by, or on behalfof, the resident or residents.
3. Specify all services which are to be provided by the provider to eachresident including, in detail, all items that each resident will receive andwhether the items will be provided for a designated time period or for life.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 financial conditions uponwhich the provider may require the resident to relinquish his space in thedesignated facility.
5. Describe the physical and mental health and financial conditions requiredfor a person to continue as a resident.
6. Describe the circumstances under which the resident will be permitted toremain in the facility in the event of financial difficulties of the resident.
7. State (i) the current fees that would be charged if the resident marrieswhile at the designated facility, (ii) the terms concerning the entry of aspouse to the facility and (iii) the consequences if the spouse does not meetthe requirements for entry.
8. Provide that the provider shall not cancel any continuing care contractwith any resident without good cause. Good cause shall be limited to: (i)proof that the resident is a danger to himself or others; (ii) nonpayment bythe resident of a monthly or periodic fee; (iii) repeated conduct by theresident that interferes with other residents' quiet enjoyment of thefacility; (iv) persistent refusal to comply with reasonable written rules andregulations of the facility; (v) a material misrepresentation madeintentionally or recklessly by the resident in his application for residency,or related materials, regarding information which, if accurately provided,would have resulted in either a failure of the resident to qualify forresidency or a material increase in the cost of providing to the resident thecare and services provided under the contract; or (vi) material breach by theresident of the terms and conditions of the continuing care contract. If aprovider seeks to cancel a contract and terminate a resident's occupancy, theprovider shall give the resident written notice of, and a reasonableopportunity to cure within a reasonable period, whatever conduct is allegedto warrant the cancellation of the agreement. Nothing herein shall operate torelieve the provider from duties under Chapter 13.2 (§ 55-248.2 et seq.) ofTitle 55 when seeking to terminate a resident's occupancy.
9. Provide in clear and understandable language, in print no smaller than thelargest type used in the body of the contract, the terms governing the refundof any portion of the entrance fee and the terms under which such fee can beused by the provider.
10. State the terms under which a contract is cancelled by the death of theresident. The contract may contain a provision to the effect that, upon thedeath of the resident, the money paid for the continuing care of suchresident shall be considered earned and become the property of the provider.
11. Provide for at least thirty days' advance notice to the resident, beforeany change in fees, charges or the scope of care or services may beeffective, except for changes required by state or federal assistanceprograms.
12. Provide that charges for care paid in one lump sum shall not be increasedor changed during the duration of the agreed upon care, except for changesrequired by state or federal assistance programs.
B. A resident shall have the right to rescind a continuing care contract,without penalty or forfeiture, within seven days after making an initialdeposit or executing the contract. A resident shall not be required to moveinto the facility designated in the contract before the expiration of theseven-day period.
C. If a resident dies before occupying the facility, or is precluded throughillness, injury or incapacity from becoming a resident under the terms of thecontinuing care contract, the contract is automatically rescinded and theresident or his legal representative shall receive a full refund of all moneypaid to the provider, except those costs specifically incurred by theprovider at the request of the resident and set forth in writing in aseparate addendum, signed by both parties to the contract.
D. No standard continuing care contract form shall be used in thisCommonwealth until it has been submitted to the Commission. If the Commissiondetermines that the contract does not comply with the provisions of thischapter, it shall have the right to take action pursuant to § 38.2-4915 toprevent its use. The failure of the Commission 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 toany standard form need not be filed with the Commission.
(1985, c. 554, § 38.1-960; 1986, cc. 562, 598.)