                                 CODE OF VIRGINIA

PARTICIPANT&#8217;S CONTRACT (§ 38.2-4923)

A. In addition to other provisions considered proper to affect the purpose of
any community-based continuing care contract, each CBCC contract executed on or
after July 1, 2012, shall:

   1. Provide for community-based continuing care;

   2. Show the value of all property transferred, including donations,
   subscriptions, fees, and any other amounts paid or payable by, or on behalf
   of, the participant;

   3. Specify all services that are to be provided by the CBCC provider to each
   participant including, in detail, all items that each participant will
   receive, whether the items will be provided at a certain percentage for a
   designated time period or for life, and what criteria will be used to
   distinguish eligibility for certain services;

   4. Describe the physical and mental health and financial conditions upon which
   the CBCC provider may require the participant to relinquish his participation
   in the program, if any exist;

   5. Describe the circumstances under which the participant will be permitted to
   remain in the program in the event of financial difficulties of the
   participant;

   6. Provide that the CBCC provider shall not cancel any community-based
   continuing care contract with any participant without good cause. Good cause
   shall be limited to (i) proof that the participant is a danger to himself or
   others; (ii) nonpayment by the participant of a monthly or periodic fee; (iii)
   repeated conduct by the participant that interferes with other
   participants&#8217; quiet enjoyment of a facility or service, if applicable;
   (iv) persistent refusal to comply with reasonable written rules and
   regulations of the program; (v) a material misrepresentation made
   intentionally or recklessly by the participant in his application for
   participation in the program, or related materials, regarding information
   which, if accurately provided, would have resulted in either a failure of the
   participant to qualify for participation or a material increase in the cost of
   providing to the participant the care and services provided under the CBCC
   contract; or (vi) material breach by the participant of the terms and
   conditions of the community-based continuing care contract. If a CBCC provider
   seeks to cancel a CBCC contract and terminate a participant&#8217;s
   participation, the provider shall give the participant written notice of, and
   a reasonable opportunity to cure within a reasonable period, whatever conduct
   is alleged to warrant the cancellation of the CBCC contract;

   7. Provide in clear and understandable language, in print no smaller than the
   largest type used in the body of the CBCC contract, the terms governing the
   refund of any portion of the CBCC entrance fee and the terms under which such
   fee can be used by the CBCC provider;

   8. State the terms under which a CBCC contract is cancelled by the death of
   the participant. The CBCC contract may contain a provision to the effect that,
   upon the death of the participant, the money paid for the community-based
   continuing care of such participant shall be considered earned and become the
   property of the CBCC provider; and

   9. Provide for at least 30 days&#8217; advance notice to the participant
   before any change in fees, charges, or the scope of care or services may be
   effective, except for changes required by state or federal assistance
   programs.

B. A participant shall have the right to rescind a community-based continuing
care contract, without penalty or forfeiture, within seven days after making an
initial deposit or executing the contract. A participant shall not be required
to initiate the program outlined in the contract before the expiration of the
seven-day period.

C. If a participant dies before initiating the program, or is precluded through
illness, injury, or incapacity from becoming a participant under the terms of
the community-based continuing care contract, the contract is automatically
rescinded and the participant or his legal representative shall receive a full
refund of all money paid to the CBCC provider, except those costs specifically
incurred by the CBCC provider at the request of the participant and set forth in
writing in a separate addendum, signed by both parties, to the contract.

D. No standard community-based continuing care contract form shall be used in
the Commonwealth until it has been submitted to the Commission. If the
Commission determines that the CBCC contract does not comply with the provisions
of this article, it shall have the right to take action pursuant to &#xA7;
38.2-4931 to prevent its use. The failure of the Commission to object to or
disapprove of any CBCC contract shall not be evidence that the contract does or
does not comply with the provisions of this article. However, individualized
amendments to any standard form need not be filed with the Commission.

HISTORY: 2012, cc. 208, 303.