Lakeland Senior AdvisorCan a Florida continuing care contract be cancelled after it is signed?
Yes: s. 651.055 gives a resident seven days after signing to rescind a continuing care contract and recover every dollar paid without penalty, and someone who signs but has not yet moved in has the same seven-day protection.
The Office of Insurance Regulation must approve every continuing care contract and addendum before a provider uses it, so the form a Lakeland community hands you has had state review, even though the prices and business terms are the provider's own.
How is an entrance-fee refund figured in Florida?
For a resident without a transferable membership or ownership right who has moved in, Florida's standard method lets the provider keep no more than 2 percent of the entrance fee for each month of occupancy, plus a processing fee of up to 5 percent, unless the contract uses an approved alternative refund plan.
A contract that keeps 1 percent or less a month may tie the refund to the next entrance fee received for a comparable unit, with time limits for contracts signed on or after January 1, 2016. The refund terms must appear in type at least as large as the rest of the contract, so look for them.
When must a Florida CCRC pay a refund?
Under the standard pro-rated method, for contracts entered on or after January 1, 2016, the refund is due within 90 days after the contract ends and the unit is vacated; a refund tied to the resale of a like unit is due within 30 days after the next entrance fee for such a unit, subject to the maximum period stated in the contract.
Contracts signed earlier may follow older timing rules unless the resident signed an approved addendum.
What must a Florida continuing care contract disclose?
Every property transferred and its value, every service provided and which ones cost extra, the health and financial conditions for admission and for staying, what happens if the resident cannot pay, fees if the resident marries, cancellation terms with at least 30 days' notice, and the refund terms.
Ask for the provider's latest annual report to OIR, which shows its financial condition, and its minimum liquid reserve calculation under s. 651.035.
Side by side
| Florida contract law guarantees | Florida contract law does not guarantee | |
|---|---|---|
| Cooling-off | Seven days to rescind with a full refund | A full refund of the entrance fee after move-in |
| Refund formula | At most 2% a month plus up to 5% processing (standard method) | Any particular refund plan |
| Approval | OIR approval of each contract form | OIR approval of prices |
Built from Chapters 408, 429 and 651, Florida Statutes; Florida Administrative Code chapters 59A-36 and 65A-2; AHCA, DCF, OIR and Department of Elder Affairs publications; and the CareScout and VA rate tables cited on this page. Our editorial standards explain how each figure is checked.
