PRINTER'S NO. 1252
No. 1063 Session of 1997
INTRODUCED BY BELL, JULY 22, 1997
REFERRED TO BANKING AND INSURANCE, JULY 22, 1997
AN ACT
1 Amending the act of June 18, 1984 (P.L.391, No.82), entitled "An
2 act regulating continuing-care facilities; imposing duties
3 upon the Insurance Commissioner; requiring certificate of
4 authority; revocation of certificates; regulating disclosure
5 statements; advertisement; regulating financial reserves;
6 requiring escrows; regulating residents' agreements;
7 establishing an advisory council; granting right of
8 organization; regulating liquidation and rehabilitation;
9 imposing civil liability; providing for the right to
10 investigate and subpoena, liens, cross-collateralization,
11 cease and desist orders and audits; imposing fees and
12 regulations; and making criminal penalties," further
13 providing for continuing-care agreements.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 14(a) of the act of June 18, 1984
17 (P.L.391, No.82), known as the Continuing-Care Provider
18 Registration and Disclosure Act, is amended by adding a
19 paragraph to read:
20 Section 14. Resident's agreement.
21 (a) In addition to such other provisions as may be
22 considered proper to effectuate the purpose of any continuing-
23 care agreement, each agreement executed on and after the date of
1 the adoption of the rules under this act shall be written in
2 nontechnical language easily understood by a layperson and
3 shall:
4 * * *
5 (12) Require the continuing-care provider to furnish
6 written notice of at least 30 days to a resident or the
7 resident's legal representative of cancellation, nonrenewal
8 or other termination of insurance coverage on the resident.
9 The notice shall contain a provision for written
10 acknowledgment of its contents by the resident or the
11 resident's legal representative.
12 * * *
13 Section 2. This act shall apply to agreements executed on or
14 after the effective date of this act.
15 Section 3. This act shall take effect in 60 days.
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