The Vermont Statutes Online

Title 8 : 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 10 percent of the entrance fee. Refunds due under this subsection shall be due and payable within 10 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.)