A. A person shall not solicit or enter into or extend the term of a senior residential entrance fee contract as a provider except pursuant to this chapter and after registering with the department as provided in section 44-6952.

Terms Used In Arizona Laws 44-6954

  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of insurance and financial institutions. See Arizona Laws 44-6951
  • Entrance fee: means an initial or deferred transfer to a provider of a facility of a sum of money or property by a person entering into a senior residential entrance fee contract that in amount or value is at least six hundred percent of the periodic fee charged to a resident, all or a portion of which may be refunded to that resident, a benefactor or a beneficiary on the resident's termination of residence in the facility. See Arizona Laws 44-6951
  • Facility: means a place or places in which a provider undertakes to provide a resident with a living unit pursuant to a senior residential entrance fee contract. See Arizona Laws 44-6951
  • Fraud: Intentional deception resulting in injury to another.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: means an individual, corporation, partnership, association, joint stock company or trust, limited liability company, government or governmental subdivision or agency or any other unincorporated organization. See Arizona Laws 44-1801
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Provider: means a person who provides lodging to seniors in a living unit pursuant to a senior residential entrance fee contract. See Arizona Laws 44-6951
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Resident: means an individual who enters into a senior residential entrance fee contract with a provider or who is designated in a senior residential entrance fee contract to receive lodging. See Arizona Laws 44-6951
  • Senior residential entrance fee contract: means a contract to provide a living unit in a facility for the duration of a resident's life or for a term of more than one year that is conditioned on the transfer of an entrance fee to the provider in addition to or in lieu of the payment of periodic charges for the living unit and that is further conditioned on the resident's ability to live independently. See Arizona Laws 44-6951

B. The senior residential entrance fee contract, or an application agreement if a contract is contemplated to be signed thereafter, shall provide that any person who enters into the contract or application agreement has a period of seven days to rescind the contract or application agreement without penalty or further obligation. The seven days begins on the first full calendar day after the last to occur of any of the following events:

1. The execution of the contract or application agreement, whichever occurs first, if the proposed form of contract is provided to the person at the time the application agreement is executed.

2. The payment of an initial sum of money as a deposit or application fee.

3. Receipt of the disclosure statements and contents prescribed in subsection D of this section.

C. If a rescission occurs, the provider shall fully refund all monies or property paid or transferred by the person. A facility shall not require a person to move into a facility until after the expiration of the seven day rescission period.

D. At or before the execution of a senior residential entrance fee contract and the transfer of any money or other property to a provider pursuant to a contract, the provider shall deliver to the person who is executing the senior residential entrance fee contract both of the following:

1. A copy of the provider’s most recent certified statement of operations and balance sheet prepared according to generally accepted accounting principles.

2. A disclosure statement that is not longer than two printed pages, that is in plain English and that provides in clear and conspicuous type the following information:

(a) The name of the facility.

(b) The name of the owner of the facility.

(c) The amount of the entrance fee.

(d) The portion of the entrance fee that is or may be refundable to the resident and the terms on which the refund is to be made.

(e) Whether, and by what method, the refundable portion of the entrance fee is insured, guaranteed, secured or otherwise provided for.

(f) A statement that a person who has complaints about an entrance fee contract may contact the consumer fraud section of the attorney general’s office.

 

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