§ 151.2. Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
ActThe Continuing Care Provider Registration and Disclosure Act (40 P. S. § § 32013225).
AffiliateA person who directly, or through one or more intermediaries, controls or is controlled by, or is under common control with, a provider or facility.
ApplicantA provider who is seeking the issuance of a certificate of authority, a temporary certificate of authority, or an extension of a temporary certificate of authority to engage in the business of continuing care in this Commonwealth.
Article VThe act of December 14, 1977 (P. L. 280, No. 92) (40 P. S. § § 221.1221.63).
Biographical affidavitA notarized background profile of an affiant, on a prescribed form, which may be obtained from the Department.
Certificate of authorityThe license issued by the Department authorizing a provider to engage in the business of continuing care in this Commonwealth, including temporary certificates of authority.
Certified public accountantAn individual licensed to practice as an accountant, and who is in good standing, under the statutes of the Commonwealth or another state with licensing requirements similar to Pennsylvania. The term includes a chartered accountant. An accountant will be recognized as independent if he conforms to the standards contained in the Code of Professional Ethics of the American Institute of Certified Public Accountants and The C.P.A. Law (63 P. S. § § 9.19.16b) or similar statutes.
CommissionerThe Insurance Commissioner of the Commonwealth.
DepartmentThe Insurance Department of the Commonwealth.
FacilityEach separate establishment, complex or campus at which location a provider engages in the business of providing continuing care. Two or more establishments located on the same premises shall be treated as separate facilities if their operations are administratively independent of each other.
Financial institutionA bank, bank and trust company or savings and loan association, as defined in sections 102(f) and (g) of the Banking Code of 1965 and section 102(3) of the Savings Association Code of 1967 (7 P. S. § § 102(f), (g) and 6020-2(3)), which is Federally insured or is Pennsylvania chartered.
Letter of creditA document evidencing a commitment to honor a demand for payment as defined in 13 Pa.C.S. § 5103(a) (relating to definitions and index of definitions). Acceptable letters of credit include only those issued or confirmed by a financial institution authorized to issue them.
Negotiable securitiesAn instrument evidencing an obligation of the issuer as defined in 13 Pa.C.S. § 8103 (relating to lien of issuer). The term includes only United States government obligations and corporate debt obligations rated AA or AAA in a recognized corporate bond rating publication, such as the Moodys Investors Service, Inc. publication.
Not-for-profitA business entity not organized for a purpose involving pecuniary gain, incidental or otherwise, to its members, shareholders or principals, under 15 Pa.C.S. § § 71017107 (relating to the corporation not-for-profit code).
Period feeA charge payable under a residents agreement which is assessed on a recurring basis, such as a monthly fee.
Qualified actuaryAn individual who is a member of the American Academy of Actuaries. The term also includes an individual who has demonstrated to the satisfaction of the Department that he possesses the educational background necessary for the practice of actuarial science and who has not less than 7 years of actuarial experience.
Residents agreementThe contract between a provider and each individual entitled to receive continuing care in a facility.
Settlement dateThe proposed date for the completion of the transfer of a controlling interest in a facility.
Transfer of ownershipThe disposition of a controlling interest in a provider or a facility, whether by sale or otherwise.
The provisions of this § 151.2 adopted March 15, 1985, effective March 16, 1985, 15 Pa.B. 1051.
Notes of Decisions
In determining whether a retirement facility makes the type of other periodic charges to its residents, so as to bring the facility within the authority of the Continuing Care Provider Registration and Disclosure Act, courts are not constrained to limit the language other periodic charges to monthly fees. Moravian Manors, Inc. v. Insurance Department, 521 A.2d 524 (Pa. Cmwlth. 1987).
The language other periodic charges is not to be interpreted to mean solely a monthly fee and the Continuing-Care Provider Registration and Disclosure Act clearly contemplates additional charges for services not covered by the entrance fee. Moravian Manors, Inc. v. Insurance Department, 521 A.2d 524 (Pa. Cmwlth. 1987).
This section cited in 31 Pa. Code § 151.10 (relating to investments).
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