AB 1044 Summary: Continuing Care Retirement Communities

• Transfers regulatory responsibility for continuing care retirement communities from the State Department of Social Services to the Department of Insurance, except for oversight of direct programs and services to residents.

• Creates two accounts within the Continuing Care Provider Fee Fund: the Insurance Account (95% of fees) continuously appropriated to the Department of Insurance, and the State Department of Social Services Account (5% of fees) for the Social Services department.

• Requires the Insurance Commissioner, State Public Health Officer, and Director of Social Services to jointly develop and adopt regulations by January 1, 2011, regarding standards, staff training, policies, and procedures for consistent implementation of the regulatory transfer.

• Applies certain insurance requirements to continuing care providers regarding disclosure of material transactions, provider holding company systems, increases in monthly care fees, dividends and distributions, reserve requirements, and beneficial ownership disclosure.

• Revises and recasts provisions for continuing care contracts including requirements for resident participation in budget planning, monthly fee increase approvals by the commissioner, and refund reserve calculations.