North Carolina SB 105: Continuing Care Retirement Communities Act.-AB

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 105

Short Title: Continuing Care Retirement Communities Act.-AB (Public)
Sponsors: Senator Johnson (Primary Sponsor).
Referred to: Rules and Operations of the Senate
February 18, 2025
*S105-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE CONTINUING CARE RETIREMENT COMMUNITIES ACT, AS 2
RECOMMENDED BY THE DEPARTMENT OF INSURANCE. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Article 64 of Chapter 58 of the General Statutes is repealed. 5
SECTION 2. Chapter 58 of the General Statutes is amended by adding a new Article 6
to read: 7
"Article 64A. 8
"Continuing Care Retirement Communities. 9
"Part 1. General Provisions. 10
"§ 58-64A-1. Title. 11
This Article shall be known and may be cited as the "Continuing Care Retirement 12
Communities Act." 13
"§ 58-64A-2. Legislative intent. 14
The General Assembly recognizes that continuing care retirement community residents often 15
expend a significant portion of their savings when contracting with a provider for continuing care 16
and devastating consequences can result if a provider becomes insolvent or unable to provide 17
continuing care. It is the intent of the General Assembly to promote the dignity and protect the 18
health, safety, and welfare of older citizens of North Carolina by (i) encouraging the development 19
of continuing care retirement communities and (ii) requiring providers offering or providing 20
continuing care in this State to obtain a license and to be monitored and regulated by the North 21
Carolina Department of Insurance under this Article. This Article applies to both for-profit and 22
nonprofit providers. 23
"§ 58-64A-5. Definitions. 24
The following definitions apply to this Article: 25
(1) Accepted actuarial standards of practice. – Standards of practice that conform 26
with Actuarial Standards of Practice No. 3 for Continuing Care Retirement 27
Communities, Revised Edition, effective June 1, 2022, including subsequent 28
amendments and editions. 29
(2) Actuarial opinion. – An opinion issued by an actuary in accordance with 30
accepted actuarial standards of practice. 31
(3) Actuarial study. – An analysis that includes an actuary's opinion of whether 32
the provider or applicant is in satisfactory actuarial balance in accordance with 33
accepted actuarial standards of practice. 34

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 105-First Edition
(4) Actuary. – An individual qualified to sign an actuarial opinion in accordance 1
with the American Academy of Actuaries' qualification standards and who is 2
a member in good standing with the American Academy of Actuaries. 3
(5) Advertisement. – Any written, visual, or electronic information provided to 4
potential residents, or their representatives, to induce those persons to 5
subscribe to or enter into a nonbinding reservation agreement, binding 6
reservation agreement, continuing care contract, or continuing care at home 7
contract. 8
(6) Affiliate. – A person that, directly or indirectly, through one or more other 9
persons, controls, is controlled by, or is under common control with a provider 10
or applicant. 11
(7) Annual debt service. – The current year's capitalized interest cost plus interest 12
expense and scheduled principal payments, excluding any balloon principal 13
payment amounts and any portion of the annual debt service that has been or 14
will be funded by debt for the payment of debt service. 15
(8) Applicant. – Any person with a pending application or other request for 16
approval under this Article. 17
(9) Audited financial statements. – Financial statements that have been prepared 18
in accordance with Generally Accepted Accounting Principles and examined 19
by an independent certified public accountant. 20
(10) Binding reservation agreement. – A binding contractual agreement between a 21
provider and a depositor that requires the payment of a deposit to reserve the 22
right to purchase continuing care, including the right to live in an independent 23
living unit at a continuing care retirement community. A purchase and sale 24
agreement for an independent living unit shall not be considered a binding 25
reservation agreement for the purposes of this Article. 26
(11) Cancel. – To terminate the force and effect of an agreement or contract. 27
(12) Continuing care. – The rendering to an individual other than an individual 28
related by blood, marriage, or adoption to the person rendering the care, of 29
housing in an independent living unit, together with related services, including 30
access, when needed, to progressive levels of health care, including either 31
assisted living care, as defined in G.S. 131D-2.1, or nursing care, as defined 32
in G.S. 131E-176, or both, regardless of whether the health care is provided at 33
the continuing care retirement community where the individual resides or 34
another location, or through a contractual relationship with a third pa