HB2505 proposes amendments to the Arizona Revised Statutes relating to life care contracts. The bill stipulates that the entrance fee, minus any deductions for expenses or fees as per the life care contract, must be returned to the contract holder when the resident's occupancy ends and either a new resident inhabits the former living unit or within one year, whichever comes first. It also introduces additional disclosure requirements for life care contracts that offer refunds, including details about entrance fees, refund eligibility, amounts, timing, and specific conditions or limits on refunds. These disclosures must be in boldface type, signed by the contract holder and their partner or spouse, witnessed by two independent persons, and initialed by the purchaser to verify understanding. Providers must keep a signed copy and provide one to the contract holder. The Department of Insurance and Financial Institutions (DIFI) may recommend or require a specified form for these disclosures. The changes apply to both new and existing life care contracts.

Statutes affected:
Introduced Version: 20-1804
House Engrossed Version: 20-1804, 20-1812, 20-1803, 20-1806, 20-1802