420-D:4 Disclosure Statement. –
I. Each provider shall provide each prospective resident with a disclosure statement which has been approved by the commissioner. The disclosure statement shall be delivered before the initial transfer of funds or before any contract is consented to by each prospective resident of the facility. The disclosure statement shall include, in conspicuous large type, the statement: "NOTICE: You are advised to consult with an attorney before signing any documents or agreements concerning this matter. You have the right to cancel this agreement within 10 days after signing without obligation, except for certain described services and charges." The language of the disclosure statement shall be in plain and understandable English.
II. The disclosure statement shall include the following information:
(a) The name of the organization and whether it is for profit, and whether it is a partnership, corporation, or other type of organization.
(b) For all officers, trustees, investors, and owners with more than 5 percent ownership and for the facility manager:
(1) Name, address and amount of ownership.
(2) Responsibility and relationship to the facility.
(3) Previous experience with similar facilities.
(4) Previous business experience.
(5) Any felony convictions against such person in any jurisdiction.
(6) Any court orders or injunctive relief against such person.
(7) Relationships with other nursing homes or like communities.
(8) Previous bankruptcies or financial actions against such person.
(9) Relationship with any supplier or potential supplier of services.
(10) Supplies or materials of any kind contributed or sold to the provider.
(c) The provider's relationship with any religious, charitable, or nonprofit organization and the extent of such organization's financial responsibilities to the provider or to residents.
(d) Whether the provider claims to be nonprofit or tax exempt.
(e) The location and description of the facility and, if it is proposed or incomplete, the estimated completion date, status of construction, and any contingencies on that completion date.
(f) Those services to be provided by the facility under basic contract and those at extra cost.
(g) All locations where services are to be provided, if different from the main facility.
(h) All entrance fees and periodic payments that are required of residents and a description of all policies and conditions for refund or return of these fees and payments.
(i) When and how periodic payments may be changed by the facility.
(j) Provisions of the provider for reserve funding, escrows, and trusts and investment of these funds.
(k) Financial statements audited by a certified public accountant including, if the facility is in operation, a balance sheet and an income statement for the 2 complete and immediately preceding years.
(l) If the facility has not yet begun operating:
(1) All expected costs or obligations.
(2) Full description of all mortgages or long term financing and an analysis of the occupancy rates necessary to pay them together with an analysis showing the number of contracts necessary to make start-up feasible.
(3) Estimated entrance fee income prior to operation.
(4) Estimated start-up losses and reserves to be covered by entrance fees.
(5) Projection of estimated annual income from periodic payments.
(6) Resident mortality and morbidity assumptions.
(7) Analysis of facilities expected to compete with the proposed facility and a demographic analysis of the elderly population expected to support the facility.
(8) All periodic payments a resident will be expected to pay.
(9) Assumptions and bases for estimating occupancy rates.
(10) All expected subsidies, private or government, including Medicaid and Medicare, and the effect if these subsidies are not received.
(11) Projected annual operating expenses.
(12) Estimated capital and equipment replacement expenditures for the current year and the next 5 years. In specific cases, the commissioner may, if he deems necessary, require a longer period of projection of the estimated capital and operating expenses.
(13) All assets pledged as collateral.
(14) Annual payments on long term financing.
(15) Any other commitments over $25,000 to make payments to another party for any purpose.
III. The disclosure statement shall contain any other information deemed necessary by the commissioner.
IV. The cover page of the disclosure statement shall state, in a prominent location and type face, the date of the disclosure statement and that the issuance of a certificate of authority does not constitute approval, recommendation, or endorsement of the facility by the department, nor is it evidence of, nor does it attest to, the accuracy or completeness of the information set out in the disclosure statement.
420-D:4 Disclosure Statement. –
I. A disclosure statement shall be approved by the department prior to delivery to any prospective resident. Each provider shall provide each prospective resident with a current disclosure statement and a current continuing care contract, which have previously been approved by the commissioner. A disclosure statement shall not be deemed current unless it contains all amendments filed and is approved by the department. When a provider files an amended disclosure statement, the provider shall redline the changes from the prior approved statement when submitting it to the department. The provider shall amend the disclosure statement if there is any change in management or ownership that requires the execution of a new affidavit supporting the disclosure statement or other material change. The provider shall have 30 days to submit an amended disclosure statement to the department for review if there is a material change. The disclosure statement shall include, in conspicuous large type, the statements below. The statements in the disclosure statement and contract shall be in plain and understandable English. The disclosure statement shall disclose fully and accurately state the characteristics of the CCRC, and the interests offered and shall make known to prospective residents all unusual and material circumstances and features affecting the CCRC and provider.
II. The disclosure statement shall be provided to the prospective resident at least 24 hours before consenting to any contract and before the initial transfer of funds, and shall include, at a minimum, the following information:
(a) The name of the provider's organization and whether it is foreign or domestic, for profit or not-for-profit, and whether it is a partnership, corporation, limited liability company, or other type of organization including non-profit entities, including all affiliates.
(b) The name and a brief description of all company-level officers, who shall fill out a biographical affidavit in accordance with the disclosure statement. The affidavit shall include:
(1) Name, address, and, if applicable, amount of ownership.
(2) Responsibility and relationship to the facility.
(3) Previous experience with similar facilities.
(4) Previous business experience.
(5) Any felony convictions against such person in any jurisdiction.
(6) Any court orders or injunctive relief against such person.
(7) Relationships with other nursing homes or like communities.
(8) Previous bankruptcies, insolvencies or financial actions against such person.
(9) Relationship with any supplier or potential supplier of services.
(10) Supplies or materials of any kind contributed or sold to the provider.
(c) The disclosure statement shall also include:
(1) If the provider is not the owner, the name and address of the owner; whether or not it is an affiliate; and the name and address of all affiliates.
(2) The provider's relationship with any religious, charitable, or nonprofit organization and the extent of such organization's financial responsibilities to the provider or to residents.
(3) Whether the provider claims to be nonprofit or tax exempt.
(4) The location and description of the facility and, if it is proposed or incomplete, the estimated completion date, status of construction, and any contingencies on that completion date.
(5) The services to be provided by the facility under basic contract and those at extra cost.
(6) All locations where services are to be provided, if different from the main facility.
(7) If the CCRC contract does not provide for assisted living, skilled nursing care, or nursing home care, the contract shall state this prominently, on the first page of the contract and in at least 14-point bold capital letters. This statement shall be preceded by the following caption:
"THIS CONTRACT DOES NOT PROVIDE YOU WITH ANY RIGHT TO RECEIVE THE FOLLOWING CARE"
(8) All entrance fees and periodic payments that are required of residents and a description of all policies and conditions for refund or return of these fees and payments.
(9) A description of the provider policy and procedures for receiving advance deposits, also known as "wait list deposits", by prospective residents desiring future occupancy at the facility and how those deposits will be maintained prior to final signing of the continuing care contract, in bank accounts, investment accounts, or escrow accounts if required by this statute and including any interest payment provisions.
(10) A description of the provider policy and procedures for receiving and maintaining entrance fees prior to and during the continuing care contract signing process, in bank accounts, investment accounts, or escrow accounts if required by this statute and including any interest payment provisions.
(11) When and how periodic payments may be charged by the provider.
(12) Provisions of the provider for reserve funding, escrows, and trusts and investment of these funds.
(13) Financial statements audited by a certified public accountant including, if the facility is in operation, a balance sheet and an income statement for the 2 complete and immediately preceding years. This requirement may be waived by the commissioner in his or her sole discretion.
(14) A description of the company's affiliates and structure, and if a non-profit, a discussion of the charitable purpose of the non-profit and the need in certain instances for money to be used for advancement of the charitable purpose.
(15) A description of the provider policy and procedures for receiving advance deposits or "wait list deposits" by prospective residents desiring future occupancy at the facility and how those deposits will be maintained prior to final signing of the continuing care contract, in bank accounts, investment accounts, or escrow accounts if required by this chapter and including any interest payment provisions.
(16) A description of the provider policy and procedures for receiving and maintaining entrance fees prior to and during the continuing care contract signing process, in bank accounts, investment accounts, or escrow accounts if required by this chapter and including any interest payment provisions.
(d) If the facility has not yet begun operating:
(1) All expected costs or obligations for a 5-year period.
(2) Full description of all mortgages or long-term financing and an analysis of the occupancy rates necessary to pay them together with an analysis showing the number of contracts necessary to make start-up feasible.
(3) Estimated entrance fee income prior to operation.
(4) Estimated start-up losses and reserves to be covered by entrance fees.
(5) Projection of estimated annual income from periodic payments for 5 years.
(6) Resident mortality and morbidity assumptions.
(7) Analysis of facilities expected to compete with the proposed facility and a demographic analysis of the elderly population expected to support the facility.
(8) All periodic payments a resident will be expected to pay.
(9) Assumptions and bases for estimating occupancy rates.
(10) All expected subsidies, private or government, including Medicaid and Medicare, and the effect if these subsidies are not received.
(11) Projected annual operating expenses for 5 years.
(12) Estimated capital and equipment replacement expenditures for the current year and the next 5 years. In specific cases, the commissioner may, if he or she deems necessary, require a longer period of projection of the estimated capital and operating expenses.
(13) All assets pledged as collateral including any pledged to an affiliate.
(14) Annual payments on long term financing.
(15) Any other commitments over $50,000 to make payments to another party for any purpose including any affiliate.
(e) The disclosure statement shall contain any other information deemed necessary by the commissioner, including relevant information from affiliates if their organizational documents or financial documents are deemed relevant by the commissioner.
III. The disclosure statement shall be in the following form:
(a) A front cover shall contain the name and address of the provider, the name and location of the CCRC, the effective date of the disclosure statement which shall be the date of certification by the department and shall contain the following statement in 10-point bold face type:
NOTICE TO PURCHASERS
THIS DISCLOSURE STATEMENT IS FOR INFORMATIONAL PURPOSES ONLY. PURCHASERS SHOULD ASCERTAIN FOR THEMSELVES THAT THE UNIT OFFERED MEETS THEIR PERSONAL REQUIREMENTS. THE NEW HAMPSHIRE DEPARTMENT OF INSURANCE AND THE DEPARTMENT OF HEALTH AND HUMAN SERVICES HAS NEITHER APPROVED NOR DISAPPROVED THE MERITS OF THIS DISCLOSURE STATEMENT. BE SURE TO READ CAREFULLY ALL DOCUMENTS BEFORE YOU SIGN THEM.
(b) The disclosure statement and the contract shall each state on the cover or top of the first page in bold print the following:
THIS MATTER INVOLVES A SUBSTANTIAL FINANCIAL PAYMENT AND A LEGALLY BINDING CONTRACT. IT DOES NOT INVOLVE THE PURCHASE OR LEASE OF REAL ESTATE. IN EVALUATING THE DISCLOSURE STATEMENT AND THE CONTRACT PRIOR TO ANY COMMITMENT, IT IS RECOMMENDED THAT YOU CONSULT WITH AN ATTORNEY AND FINANCIAL ADVISOR OF YOUR CHOICE, IF YOU SO ELECT, WHO CAN REVIEW THESE DOCUMENTS WITH YOU. THIS ARRANGEMENT CARRIES WITH IT SOME RISK. MAKE SURE TO HAVE YOUR LAWYER AND FINANCIAL ADVISOR REVIEW THE CONTRACT AND DISCLOSURE STATEMENT WITH YOU.
(c) A reasonably detailed table of contents showing the subject matter of the various sections, subsections, or documents contained in the disclosure statement and the page number on which each appears shall be added at the front of the disclosure statement.
IV. The provider shall attach a copy of an example of a standard continuing care contract used by the provider as an exhibit to each disclosure statement.
V. In bold type in the disclosure statement: "You have the right to cancel the continuing care contract within 15 days after signing without obligation, except for certain described services and charges outlined in the continuing care contract. You will receive a full refund of your entrance fee less only disclosed charges during the 15-day rescission period to be paid within 45 days of request of written notice of rescission."