2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 523D - RETIREMENT FACILITIES
523D.6 - CONTRACTS.

        523D.6  CONTRACTS.
         1.  Disclosure.  In addition to any other provisions
      prescribed by rules adopted under this chapter, each contract
      providing for continuing care or senior adult congregate living
      services 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.
         c.  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 with regard to
      any health or financial conditions upon which the provider may
      require the resident to relinquish the resident's space in the
      designated facility.
         g.  A statement of the policy of the facility with regard to
      the health and financial conditions required for a person to continue
      as a resident.
         h.  A statement of the policy of the facility with regard to
      the conditions under which the resident is permitted to remain in the
      facility 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 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, transfers
      the resident from one level of care to another, or transfers the
      resident to another health facility.
         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 or discharge a resident from a facility
      prior to the expiration of a resident contract 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.  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 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 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, 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, except those costs
      specifically incurred by the facility at the request of the resident
      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 or the resident, including a statement of the refund rights
      of a resident, 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.

         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 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.  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.

         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)

      

         89 Acts, ch 217, § 6; 90 Acts, ch 1168, § 55; 90 Acts, ch 1233, §
      34; 91 Acts, ch 205, § 15; 92 Acts, ch 1163, § 102
         Referred to in § 523D.5