Michigan Laws 554.955 – Offer or sale of continuing care agreement; prohibited acts
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 554.955
- Advertisement or marketing communication: means any disclosure statement, prospectus, pamphlet, circular, form letter, written or electronic advertisement, social media or other sales literature or advertising communication, including a written, printed, or pictorial communication, or a communication by means of a recorded telephone message or message spoken on the radio, television, or similar communications media, intended for distribution or transmission to prospective members in connection with an offer or sale of a continuing care agreement. See Michigan Laws 554.903
- community: means a retirement community in which a person undertakes to provide or arrange for continuing care and which is 1 or more of the following:
(i) An adult foster care facility. See Michigan Laws 554.903Continuing care: means some or all of the following services:
(i) A living unit. See Michigan Laws 554.903Department: means the department of licensing and regulatory affairs. See Michigan Laws 554.905 Fraud: Intentional deception resulting in injury to another. Order: means a consent, authorization, approval, prohibition, or requirement applicable to a specific case issued by the department. See Michigan Laws 554.907 Person: means an individual, partnership, corporation, association, governmental entity, or other legal entity. See Michigan Laws 554.909 Publish: means to publicly issue or circulate by newspaper, mail, radio, television, or electronic means or otherwise to disseminate to the public. See Michigan Laws 554.909 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) A person shall not, in connection with the offer or sale of a continuing care agreement, directly or indirectly do any of the following:
(a) Employ a device, scheme, or artifice to defraud.
(b) Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit.
(c) Make an untrue statement of a material fact or fail to state a material fact necessary in order to make the statements made not misleading, in the light of the circumstances under which they are made, including an untrue statement of a material fact or failure to state a material fact in any application, notice, or report filed with the department under this act.
(d) Fail to notify the department of a reportable change as required by section 33.
(e) Publish any advertisement or marketing communication that contains false, fraudulent, misleading, or deceptive information. This subdivision does not apply to a person that publishes an advertisement or marketing communication on behalf of a continuing care community and is not affiliated with the continuing care community.
(2) Each of the following practices constitutes a false, fraudulent, misleading, or deceptive advertising or marketing communication for purposes of subsection (1)(e):
(a) A statement or inference that the purchase of a membership in a continuing care community is a safe investment.
(b) A statement or inference that a continuing care community is affiliated with a religious, nonprofit, or proprietary organization if it is not so affiliated.
(c) A material misrepresentation of services, care, or amenities, provided or to be provided by a continuing care community.