Print

The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

151

:
CONTINUING CARE RETIREMENT COMMUNITIES











 

§

8007. Refunds

(a) Unless

otherwise provided in this section, all refunds of entrance fees shall be made

within 60 days of the day notice of termination is given. Refunds shall be made

less any additional costs specifically incurred by the provider at the request

of the resident and set forth in writing as a separate addendum. Refunds shall

be made according to the following provisions.

(b) If the

contract is terminated:

(1) due to death

prior to the occupancy date or 90 days thereafter, or if the person is

precluded from becoming a resident under the continuing care contract due to

illness, injury, or incapacity, the provider shall refund within 10 days all

entrance fees received in connection with the contract;

(2) due to death

after the first 90 days but within the first year of occupancy, at least 50

percent of the entrance fee shall be refunded.

(c) If the

contract is voluntarily terminated by the resident and:

(1) occurs

within 30 days of the date the contract was entered, the provider shall refund all

money paid or property transferred in connection with the contract within 10

days;

(2) occurs more

than 30 days after the contract is entered into and within the first 90 days of

occupancy, the resident shall receive a refund of the entrance fee less an

amount up to four percent of the entrance fee;

(3) occurs more

than 90 days after occupancy, a refund shall be calculated on a pro rata basis

with the provider retaining no more than two percent of the entrance fee per

month of occupancy.

(d) If the contract

is terminated by the provider, the provider shall refund an amount equal to the

entrance fee divided by the resident's years of expected lifetime at the time

of admission multiplied by his or her years of lifetime at the time of

discharge or dismissal. For purposes of this subsection, years of expected

lifetime shall be computed on the basis of the mortality tables used by the

department under the provisions of section 3784 of this title at the time of

the discharge or dismissal. However, in any event refunds shall not be less

than ten percent of the entrance fee. Refunds due under this subsection shall

be due and payable within ten days of the date that the resident relinquishes

possession of the living unit.

(e) If less than

80 percent of individual units are contracted, a provider may apply to the

Commissioner for permission to delay the refund period under subdivisions

(c)(2) and (3) of this section for up to 24 months or until receipt of an

entrance fee for the same or a comparable unit, whichever is earlier. If the

Commissioner determines that the financial condition of the provider requires

such an extension, he or she may order partial distribution of the refund in

order to protect a resident from undue hardship.

(f)

Notwithstanding the other refund provisions of this section, if the facility is

not available for occupancy a provider may elect to defer payment of refunds of

up to 50 percent of the entrance fee received from or on behalf of the resident

until receipt of an entrance fee for the same or a comparable unit or until the

facility is occupied, whichever occurs first. However, in no event shall the

provider defer payment of a refund for more than 24 months.

(g) In the event

a provider defers payment of the refund beyond 60 days under subsections (e)

and (f) of this section, it shall pay interest to the resident at a rate which

is two percentage points above the prime rate charged by banks, as that term is

defined in 32 V.S.A. § 3108(a). (Added 1987, No. 247 (Adj. Sess.), § 1.)