The proposed bill, HB2505, amends existing laws regarding life care contracts in Arizona, specifically focusing on the handling of entrance fees and the disclosure requirements for providers. Key changes include stipulating that the entrance fee, after deductions for expenses, must be returned to the contract holder when the resident's occupancy ends, either upon the new resident moving in or within one year, whichever comes first. Additionally, the bill mandates that providers must deliver a separate disclosure document detailing the conditions of the entrance fee, including refund policies, and requires that this document be signed by the contract holder and witnessed by two independent individuals.

Furthermore, the bill enhances transparency by requiring that the disclosure language be presented in boldface type and that the provider retains a signed copy of the disclosure statement. It also allows the Department of Insurance and Financial Institutions (DIFI) to recommend or require specific forms for these disclosures. The new provisions apply to both new and existing life care contracts, ensuring that all contract holders are informed of their rights and the terms of their agreements.

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