North Carolina HB 357: Continuing Care Retirement Communities Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-58
HOUSE BILL 357

*H357-v-5*
AN ACT TO ENACT THE CONTINUING CARE RETIREMENT COMMUNITIES ACT, AS
RECOMMENDED BY THE DEPARTMENT OF INSURANCE.

The General Assembly of North Carolina enacts:

SECTION 1. Article 64 of Chapter 58 of the General Statutes is repealed.
SECTION 2. Chapter 58 of the General Statutes is amended by adding a new Article
to read:
"Article 64A.
"Continuing Care Retirement Communities.
"Part 1. General Provisions.
"§ 58-64A-1. Title.
This Article shall be known and may be cited as the "Continuing Care Retirement
Communities Act."
"§ 58-64A-2. Legislative intent.
The General Assembly recognizes that continuing care retirement community residents often
expend a significant portion of their savings when contracting with a provider for continuing care
and devastating consequences can result if a provider becomes insolvent or unable to provide
continuing care. It is the intent of the General Assembly to promote the dignity and protect the
health, safety, and welfare of older citizens of North Carolina by (i) encouraging the development
of continuing care retirement communities and (ii) requiring providers offering or providing
continuing care in this State to obtain a license and to be monitored and regulated by the North
Carolina Department of Insurance under this Article. This Article applies to both for-profit and
nonprofit providers.
"§ 58-64A-5. Definitions.
The following definitions apply to this Article:
(1) Accepted actuarial standards of practice. – Standards of practice that conform
with Actuarial Standards of Practice No. 3 for Continuing Care Retirement
Communities, Revised Edition, effective June 1, 2022, including subsequent
amendments and editions.
(2) Actuarial opinion. – An opinion issued by an actuary in accordance with
accepted actuarial standards of practice.
(3) Actuarial study. – An analysis that includes an actuary's opinion of whether
the provider or applicant is in satisfactory actuarial balance in accordance with
accepted actuarial standards of practice.
(4) Actuary. – An individual qualified to sign an actuarial opinion in accordance
with the American Academy of Actuaries' qualification standards and who is
a member in good standing with the American Academy of Actuaries.
(5) Advertisement. – Any written, visual, or electronic information provided to
potential residents, or their representatives, to induce those persons to
subscribe to or enter into a nonbinding reservation agreement, binding

Page 2 Session Law 2025-58 House Bill 357
reservation agreement, continuing care contract, or continuing care at home
contract.
(6) Affiliate. – A person that, directly or indirectly, through one or more other
persons, controls, is controlled by, or is under common control with a provider
or applicant.
(7) Annual debt service. – The current year's capitalized interest cost plus interest
expense and scheduled principal payments, excluding any balloon principal
payment amounts and any portion of the annual debt service that has been or
will be funded by debt for the payment of debt service.
(8) Applicant. – Any person with a pending application or other request for
approval under this Article.
(9) Audited financial statements. – Financial statements that have been prepared
in accordance with Generally Accepted Accounting Principles and examined
by an independent certified public accountant.
(10) Binding reservation agreement. – A binding contractual agreement between a
provider and a depositor that requires the payment of a deposit to reserve the
right to purchase continuing care, including the right to live in an independent
living unit at a continuing care retirement community. A purchase and sale
agreement for an independent living unit shall not be considered a binding
reservation agreement for the purposes of this Article.
(11) Cancel. – To terminate the force and effect of an agreement or contract.
(12) Continuing care. – The rendering to an individual other than an individual
related by blood, marriage, or adoption to the person rendering the care, of
housing in an independent living unit, together with related services, including
access, when needed, to progressive levels of health care, including either
assisted living care, as defined in G.S. 131D-2.1, or nursing care, as defined
in G.S. 131E-176, or both, regardless of whether the health care is provided at
the continuing care retirement community where the individual resides or
another location, or through a contractual relationship with a third party,
pursuant to a contract effective for the life of the individual or for a period
longer than one year.
(13) Continuing care at home. – A program offered by a provider holding a
permanent license under this Article that provides continuing care to an
individual who is not yet receiving housing, which may include programs that
offer an individual an opportunity to move to an independent living unit at a
futu