ARIZONA STATE SENATE
Phoenix, Arizona
FACT SHEET FOR S.B. 1078
continuing care contracts
Purpose
Renames "life care contracts" to "continuing care contracts" and clarifies that the Director of the Department of Insurance (Director) may order an appraisal of a continuing care facility.
Background
Continuing care facilities provide nursing care, medical treatment and services and health-related services, as well as lodging and board, to facility residents. Continuing care contracts are
insurance-like contracts that provide these services for terms of more than one year to the duration
of life, charging residents an entrance fee in addition to or in lieu of periodic payments. According
to the Department of Insurance (Department), there are currently nine such facilities in Arizona.
Industry representatives indicate that "continuing care" is the term now commonly used in the health
care industry to describe such contracts.
The Director may, at his discretion, conduct appraisals of such facilities, the cost of which is
borne by life care contract providers. However, since the Department infrequently orders such
appraisals, certain life care facilities have expressed surprise that any appraisal was in fact demanded.
S.B. 1078 simply clarifies that the Director does in fact possess this power but is not obligated to
order appraisals.
Provisions
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Prepared by Senate Staff
January 25, 1999
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