Michigan Laws 554.939 – Continuing care agreement; requirements
Current as of: 2024 | Check for updates
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Terms Used In Michigan Laws 554.939
- community: means a retirement community in which a person undertakes to provide or arrange for continuing care and which is 1 or more of the following:
(i) An adult foster care facility. See Michigan Laws 554.903Continuing care: means some or all of the following services:
(i) A living unit. See Michigan Laws 554.903Continuing care agreement: means a written agreement, including a long-term lease or an agreement conferring a life interest, between a member and a continuing care community for continuing care upon payment of an entrance fee. See Michigan Laws 554.903 Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries. Department: means the department of licensing and regulatory affairs. See Michigan Laws 554.905 Disclosure statement: means a disclosure statement as required under section 19(1)(c) or that may be required by the department under section 25, as applicable. See Michigan Laws 554.905 Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity. Member: means an individual who enters into a continuing care agreement with a continuing care community. See Michigan Laws 554.907
A continuing care agreement shall meet all of the following requirements:
(a) Specify in reasonable detail the rights, privileges, liabilities, and obligations of each party to the continuing care agreement with respect to the statements included in the disclosure statement under section 37(1)(h) to (cc).
(b) Specify whether a continuing care agreement may be terminated due to a material breach by either party and if so, what constitutes a material breach.
(c) Specify that the continuing care community may provide access to an adequate alternative facility that will provide care for the member, in place of or in mitigation of any damages.
(d) Specify that the continuing care community will not terminate a member without 30 days’ written notice unless the continuing care community provides access to an adequate alternative facility.
(e) Each continuing care agreement shall be set forth in not less than 12-point type. The department may prescribe the format of a continuing care agreement or require a continuing care community to set forth in a continuing care agreement potential adverse information in designated positions and in a type size specified by the department.
(f) Specify that a continuing care agreement does not confer a property interest, an individual or partial ownership of a continuing care community, or voting rights in the operation of a continuing care community.