Texas Department of Insurance ("TDI") Adopts Rules Concerning Continuing Care Retirement Centers ("CCRCs")

On March 6, 2009, TDI published an adopted rule in the Texas Register (34 Tex. Reg. 1608) concerning CCRCs.  Under the adopted rule, providers operating a phase-in facility may make an initial filing with the escrow agent, then with TDI, and then supplement the filing with quarterly reports.  This avoids the submission of multiple reports previously required.  The adopted rule also does the following:

• Specifies the requirements relating to the number of items that must be provided by an applicant for a certificate of authority to operate as a CCRC;
• Specifies the requirements for the release of entrance fee escrow funds for phase-in facilities;
• Instructs phase-in facility operators on how to achieve release of entrance fee escrow funds; and
• Requires CCRC operators who lease their facilities to maintain one year’s worth of anticipated lease payments for the facility in escrow.