Chapter 58

All changes to an escrow agreement shall be submitted to, and approved by, the Commissioner before use by a provider. (2025-58, s. 2.)

(a) The provider shall deliver to the escrow agent any entrance fees or deposits required to be maintained in an escrow account pursuant to this Article within 10 business days after receipt by the provider. (b) Any deposit delivery to an escrow agent pursuant to this Article sha…

(a) All entrance fees and deposits subject to an escrow agreement under this Article shall be maintained by the escrow agent in one of the following manners: (1) Investment in an interest-bearing account. (2) Investment in instruments guaranteed by the federal government or an ag…

(a) Interest, income, and other gains derived from funds held in an escrow account shall not be released or distributed from the escrow account except upon written approval of the Commissioner. (b) Approval by the Commissioner for the release of earnings generated from funds held…

No funds held in an escrow account shall be encumbered or used as collateral for any obligation of the provider, or any other person, unless the provider obtains prior written approval from the Commissioner for the encumbrance or use as collateral. The Commissioner shall not appr…

(a) An escrow agent shall refund to a depositor, or their legal representative, all amounts required by the depositor's nonbinding reservation agreement, binding reservation agreement, or continuing care contract upon receiving written notice from the provider of any of the follo…

(a) To request a release of the first twenty-five percent (25%) of each escrowed entrance fee and deposit, a provider shall petition in writing to the Commissioner and certify all of the following: (1) The provider has presold at least fifty percent (50%) of the proposed independ…

The following definitions apply to this Part: (1) Adjusted net operating margin ratio. - A profitability ratio that measures the margin generated from the core operations of a provider and net cash proceeds from entrance fees. The quotient shall be calculated by dividing the sum …

No dividend or other distribution of equity or net assets shall be paid by any provider after the Commissioner has determined that the provider is in a hazardous condition or has been determined to not be in satisfactory actuarial balance in an actuarial study filed with the Comm…

(a) A provider shall prepare a disclosure statement for each continuing care retirement community operated or to be operated in this State that includes all of the following information: (1) The name, business address, and telephone number of the provider and a statement of wheth…

(a) A provider shall deliver a current disclosure statement meeting the requirements of G.S. 58-64A-150 to the person or the person's legal representative with whom a binding reservation agreement, continuing care contract, or continuing care at home contract is to be entered int…

(a) Within 150 days following the end of each fiscal year, a provider shall file with the Commissioner a revised disclosure statement setting forth current information required pursuant to G.S. 58-64A-150. The annual disclosure statement revision shall be accompanied by an annual…

(a) A provider may revise its disclosure statement at any time if, in the opinion of the provider, revision is necessary to prevent an otherwise current disclosure statement from containing a material misstatement of fact or omitting a material fact required to be stated therein.…

A binding reservation agreement shall include all of the following: (1) A provision that the person entering into the agreement may rescind the agreement within 30 days following the later of the following occurrences: (i) the execution of the agreement or (ii) the receipt of a d…

(a) A continuing care contract shall include all of the following: (1) A provision that the person contracting with the provider may rescind the contract within 30 days following the later of (i) the execution of the contract or (ii) the receipt of a disclosure statement that mee…

As used is this Part, "home care services" is defined in G.S. 131E-136. (2025-58, s. 2.)

(a) No person shall arrange or provide continuing care at home unless licensed by the Commissioner pursuant to this Article. Only a provider who has obtained a permanent license or a restricted permanent license pursuant to this Article may apply to the Commissioner for a continu…

(a) A continuing care at home contract shall include all of the following provisions: (1) A provision that the individual contracting with the provider may rescind the contract within 30 days following the later of (i) the execution of the contract or (ii) the receipt of a disclo…

(a) All providers shall have an annual audit by an independent certified public accountant and shall file audited financial statements with the Commissioner within 150 days following the end of each fiscal year. (b) Extensions of the filing date may be granted by the Commissioner…

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 provid…

No person shall engage in the business of offering or providing continuing care in this State without a certification, license, permit, or other approval from the Commissioner as provided in this Article. Engaging in the business of offering or providing continuing care in this S…

(a) The annual audited financial statements shall report the financial position of the provider as of the end of the most recent fiscal year and the results of its operations, cash flows, and changes in equity or net assets for the year then ended. The audited financial statement…

Within 45 days after the end of each fiscal quarter, a provider shall file with the Commissioner all of the following: (1) Quarterly unaudited financial statements of the provider and any obligated group of which the provider is a member, which shall include a balance sheet, a st…

(a) A provider shall submit to the Commissioner, at least once every three years, an actuarial study prepared in accordance with accepted actuarial standards of practice for each continuing care retirement community operated by the provider in this State and any continuing care a…

If the Commissioner determines that additional information is needed to properly monitor the financial condition or operations of a provider or continuing care retirement community or is otherwise needed to protect the interests of residents and the general public, the Commission…

A provider shall notify the Commissioner and all residents in writing within 10 business days whenever any of the following apply: (1) The provider fails to maintain the operating reserve required pursuant to Part 11 of this Article. (2) The provider, or any obligated group of wh…

(a) An applicant or provider shall notify the Commissioner of material changes or deviations in any information submitted to the Commissioner pursuant to this Article within 10 business days after the applicant or provider becomes aware of the change or deviation. (b) Within 30 d…

(a) No permit, certificate, or license issued pursuant to this Article is transferable, and no permit, certificate, or license issued pursuant to this Article has value for sale or exchange as property. (b) A provider or any other person who owns the real property used in the ope…

(a) No person shall enter into an agreement to merge with, or to otherwise acquire control of, a provider holding a certificate or license under this Article unless the transaction is approved by the Commissioner. To obtain the Commissioner's approval, the acquiring person shall …

(a) A provider shall request the approval of the Commissioner before entering into a contract with a third party for the management of a continuing care retirement community. The request for approval required by this section shall include a copy of the proposed management contrac…

(a) A provider shall maintain after the opening of a continuing care retirement community an operating reserve equal to fifty percent (50%) of the total operating costs of the continuing care retirement community forecasted or projected for the 12-month period following the perio…

(a) An applicant or provider who intends to collect or does collect entrance fees shall not lease any land or other real property from another person if the land or other real property is to be used as a material part of a continuing care retirement community operated by the appl…

(a) The five-year prospective financial statements as required by G.S. 58-64A-150(a)(37), together with the 12-month daily average independent living unit occupancy rate of the continuing care retirement community, shall serve as the basis for computing the operating reserve. A p…

(a) A provider shall fund its operating reserve with any of the following qualifying assets: (1) Cash. (2) Cash equivalents. (3) Investment grade securities. For the purposes of this subdivision, investment grade securities are any of the following: a. Securities issued or direct…

(a) Alternative Funding Methods. - In lieu of funding the operating reserve with qualifying assets as set forth in G.S. 58-64A-255, a provider may fund all or a portion of the operating reserve required by this Part by filing with the Commissioner a surety bond or letter of credi…

(a) An operating reserve shall only be released, in whole or in part, upon the submittal of a detailed request from the provider and approval of that request by the Commissioner. This request shall be submitted in writing for the Commissioner to review at least 10 business days p…

At the time a provider files its annual audited financial statements pursuant to G.S. 58-64A-195, a provider shall file a form acceptable to the Commissioner computing, reporting, and certifying all of the following: (1) The 12-month daily average independent living unit occupanc…

As used is this Part, "impaired" means a weakened financial state or condition that may affect a provider's ability to pay its obligations as they come due in the normal course of business. (2025-58, s. 2.)

(a) The Commissioner may (i) deny an application or any other request for approval or (ii) restrict or revoke any permit, certificate, license, or other authorization issued under this Article if the Commissioner finds that the applicant or provider did any of the following: (1) …

The Commissioner may consider any of the following standards to determine whether a provider is in a hazardous condition: (1) Whether the provider is impaired or insolvent. (2) Adverse findings reported in examination reports, audit financial statements, and actuarial opinions, r…

(a) If the Commissioner has determined that a provider is in a hazardous condition, the Commissioner may, in lieu of taking action under G.S. 58-64A-280 or G.S. 58-64A-335, and after notice and opportunity for hearing, issue an order requiring a provider to (i) submit a correctiv…

(a) The Commissioner may make public or private investigations within or outside of this State as necessary to (i) determine whether any person has violated or is about to violate any provision of this Article, (ii) aid in the enforcement of this Article, or (iii) verify statemen…

Except when required by the Commissioner to submit a hard copy, all applicants and providers shall submit all filings required by this Article electronically, in a form and manner acceptable to the Commissioner and in compliance with the Uniform Electronic Transactions Act. (2025…

(a) A provider who enters into a binding reservation agreement, continuing care contract, or continuing care at home contract under this Article without having first delivered a disclosure statement meeting the requirements of Part 5 of this Article to the person with whom the bi…

(a) Any person who willfully and knowingly violates any provision of this Article is guilty of a Class 1 misdemeanor. The Commissioner may refer any available evidence concerning a violation of this Article, or of any rule adopted or order issued pursuant to this Article, to the …

(a) A permit, certificate, license, or other approval issued by the Commissioner pursuant to this Article shall be forfeited, after notice and opportunity for hearing, when any one of the following occurs: (1) The provider terminates marketing a proposed continuing care retiremen…

(a) If the Commissioner determines that a provider is or has been violating the provisions of this Article, the Commissioner may, after notice and opportunity for hearing, order the provider to cease entering into binding reservation agreements, continuing care contracts, and con…

The civil, criminal, and administrative remedies available to the Commissioner pursuant to this Article are not exclusive and may be sought and employed by the Commissioner, in any combination, to enforce this Article. (2025-58, s. 2.)

Regardless of whether delinquency proceedings as to a provider have been or are to be initiated, a provider may not actively solicit, approve the solicitation of, or enter into new binding reservation agreements, continuing care contracts, or continuing care at home contracts in …

(a) The Commissioner may commence a supervision proceeding pursuant to Article 30 of this Chapter or may apply to the Superior Court of Wake County or to the federal bankruptcy court that may have previously taken jurisdiction over the provider or continuing care retirement commu…