Md. Code Regs. 32.02.01.31

Current through Register Vol. 51, No. 24, December 2, 2024

Section 32.02.01.31 - Termination of the Agreement After the Occupancy Date

A. Termination by a Subscriber. If the subscriber elects to terminate the agreement after the date of occupancy, refund of the entrance fee is governed by the terms of the agreement.

B. Dismissal or Discharge by the Provider.

(1) An agreement may not permit dismissal or discharge of a subscriber from a facility, including by involuntary transfer to an accommodation outside the facility, before expiration of the agreement for any reason, unless the:

(a) Dismissal or discharge is for just cause; and

(b) Subscriber is given advance notice of at least 60 days.

(2) Just cause can exist only when there is:

(a) Nonpayment;

(b) Material breach of:

(i) The agreement, or

(ii) Written reasonable rules of the provider that contractually bind the subscriber; or

(c) Health status or behavior that constitutes a substantial threat to the health or safety of the subscriber or other subscribers.

(3) A notice of dismissal or discharge shall include at least the following:

(a) A statement of the intent to dismiss or discharge;

(b) A statement of each reason for dismissing or discharging, which shall include at least one of the reasons stated in §B(2) of this regulation;

(c) The facts that serve as the basis for the provider's decision to dismiss or discharge; and

(d) The effective date of dismissal or discharge, which shall be at least 60 days from the date the subscriber receives the notice.

(4) An agreement may recognize that a subscriber may have to be moved in the event of an emergency. A move or transfer of a subscriber to an accommodation outside the facility because of an emergency may not, in and of itself, establish just cause for a dismissal or discharge.

C. Permissible Dismissal or Discharge.

(1) In the event of a permissible dismissal or discharge, the provider shall pay to the discharged subscriber a refund equal to the subscriber's total entrance fee divided by the subscriber's years of expected life at admission multiplied by the subscriber's years of expected life at discharge or dismissal. Years of expected life at admission and at dismissal or discharge shall be computed at the time of discharge or dismissal. The computations shall be based upon the appropriate life tables in the most recently published version of the United States Decennial Life Tables published by the U.S. Department of Health and Human Services.

(2) A refund paid after a permissible dismissal or discharge shall be paid within 60 days of the later of the:

(a) Effective date of the discharge or dismissal; or

(b) Subscriber's vacating the unit.

D. In the event of a discharge or dismissal of one subscriber from a unit occupied by two or more subscribers, the subscriber not discharged from the unit has the option to terminate the agreement and receive a refund based on the formula described in §C of this regulation.

E. In the event of a discharge of two subscribers who contracted for a single two-subscriber unit, or in cases where the option in §D of this regulation is selected, the refund shall be calculated based on the assumption that the entrance fee is attributable in equal shares to each subscriber. One half of the entrance fee is multiplied and divided by the appropriate life expectancy of each subscriber, and the results added to determine the total refund.

Md. Code Regs. 32.02.01.31

Regulations .31 adopted effective July 27, 1998 (25:15 Md. R. 1192)