Iowa Code § 523D.6 - Contracts

1. Disclosure. In addition to any other provisions prescribed by rules adopted under this chapter, each contract providing for continuing care or senior adult congregate living services by a provider shall be written in nontechnical language easily understood by a lay person and shall include all of the following: a. The name and business address of the provider. b. The name and address of the facility or facilities, or of the program. c. If a prospective resident elects to reside in housing at the facility of a provider, the identification of the living unit which the prospective resident will occupy. d. A description of the total consideration paid by the resident, including the value of all property transferred. e. A list of all of the continuing care or senior adult congregate living services which are to be provided by the provider to each resident. The list shall clearly identify the manner in which continuing care or senior adult congregate living services will be provided, including a statement whether the items will be provided for a designated time period or for life, and shall indicate which continuing care and senior adult congregate living services, if any, will be provided through an affiliate or third party. The description of any service charges or fees shall, in the event of multiple residents, be provided on an individual basis and shall include a description of any additional charges that will be assessed for occupancy by more than one resident. f. A statement of the policy of the facility or program with regard to any health or financial conditions upon which the provider may require the resident to relinquish the resident’s space in the designated facility or program. g. A statement of the policy of the facility or program with regard to the health and financial conditions required for a person to continue as a resident or an enrollee in a program. h. A statement of the policy of the facility or program with regard to the conditions under which the resident is permitted to remain in the facility or program in the event of financial difficulties affecting the resident. i. A statement of the terms concerning the entry of a person to the living unit and the consequences if a person does not meet the requirements for entry. j. A statement of the policy of the facility or program with regard to changes in accommodations and a description of the procedures to be followed by the provider when the provider temporarily or permanently changes the resident’s accommodations within the facility or program, transfers the resident from one level of care to another, or transfers the resident to another health facility or program. k. A description in clear and understandable language, in at least ten point type, of the terms governing the refund of any portion of the entrance fee in the event of discharge by the provider, or cancellation by the resident, and a statement that the provider shall not dismiss or discharge a resident from a facility or program prior to the expiration of a resident contract without just cause and sixty days’ written notice of intent to cancel. The notice of dismissal or discharge shall only be given upon a good-faith determination that just cause exists, and the notice shall be given in writing, signed by the medical director, if any, and the administrator of the facility or program. In an emergency situation only such notice as is reasonable under the circumstances is required. l. A description in clear and understandable language, in at least ten point type, whether monthly fees, if charged, are subject to periodic increases. m. A description of the facility’s or program’s policies and procedures for handling grievances between the provider and residents. n. A statement that residents living in the facility have the right of self-organization. o. A statement that a prospective resident or resident shall be given the opportunity to appoint a personal representative in the prospective resident’s or resident’s contract. The personal representative shall receive copies of the contract and all notices, disclosures, or forms required by this chapter to be delivered to a prospective resident or resident. A personal representative appointed under this section has no legal authority to make any decision for the prospective resident or resident appointing the person to be a personal representative. The personal representative may advise the prospective resident or resident as to the materials provided. A personal representative shall not be affiliated or associated with a provider or any person identified in section 523D.3, subsection 1, paragraph “b” or “c”, and shall not be a prospective resident or resident. p. A statement that if a resident dies or through illness, injury, or incapacity is precluded from becoming a resident under the terms of the contract before occupying the living unit, or precluded from commencing a continuing care services program under the terms of the contract, the contract is automatically rescinded and the resident or the resident’s legal representative shall receive a full refund of all payments of money or transferred property to the facility or program, except those costs specifically incurred by the facility or program at the request of the resident or program enrollee and set forth in writing in a separate addendum, signed by both parties to the contract. q. A statement that a resident has the right to rescind a contract for continuing care or senior adult congregate living services, without penalty or forfeiture, within three business days of the date the contract was executed or within thirty days after the date the resident received the disclosure statement required by section 523D.3, whichever is later. 2. Cancellation. The contract required by this section shall state the terms under which the contract can be canceled by the provider, the resident, or a program enrollee, including a statement of the refund rights of a resident, or a program enrollee, and shall include a completed, easily detachable form in duplicate, captioned “Notice of Cancellation”, as an attachment, in ten point boldface type, containing the following information and statements in substantially the following form and language: NOTICE OF CANCELLATION ................................ Date contract was executed. ................................ Date disclosure statement was provided to resident or program enrollee. You may rescind and cancel your contract, without any penalty or obligation, within three business days of the date the contract was executed or within thirty days after the date you received the disclosure statement required by Iowa Code section 523D.3, whichever is later. You are not required to move into the facility or commence continuing care services from the program before the expiration of this cancellation period. However, if you do, the provider may retain the reasonable value of care and services actually provided to you, the resident, prior to your vacating the provider’s facility or terminating continuing care services from the program. If you cancel this contract and you have already moved into the provider’s facility, you must vacate your living unit within ten days after receipt by the provider of your cancellation notice. If you cancel this contract, any payments of money or transfers of property you made to the provider must be returned as soon as reasonably possible by the provider following receipt by the provider of your cancellation notice, and any security interest arising out of the transaction is canceled, except that, as stated above, the provider may retain the reasonable value of care and services actually provided to you prior to your vacating the provider’s facility or terminating continuing care services from the program. To cancel this contract, mail by certified mail or hand deliver a signed and dated copy of this cancellation notice or any other written notice clearly indicating your intent to cancel the contract, or send a telegram, to ................................ (name of provider) at ................................ (address of provider’s place of business). Your cancellation is effective upon mailing by certified mail, when transmitted by telegraph, or when actual notice is given to the provider, whichever is earlier. I hereby cancel this contract. ........................ (Date) ................................................ (Resident’s signature) 89 Acts, ch 217, §6; 90 Acts, ch 1168, §55; 90 Acts, ch 1233, §34; 91 Acts, ch 205, §15; 92 Acts, ch 1163, §102; 2024 Acts, ch 1031, §10, 11 Referred to in §523D.5