Section 3214 - Resident's agreement(a) In addition to such other provisions as may be considered proper to effectuate the purpose of any continuing-care agreement, each agreement executed on and after the date of the adoption of the rules under this act shall be written in nontechnical language easily understood by a layperson and shall: (1) Provide for the continuing care of only one resident, or for two or more persons occupying space designed for multiple occupancy, under appropriate procedures established by the provider and shall show the value of all property transferred, including donations, subscriptions, fees and any other amounts paid or payable by, or on behalf of, the resident or residents.(2) Specify all services which are to be provided by the provider to each resident including, in detail, all times which each resident will receive and whether the items will be provided for a designated time period or for life and the average annual cost to the provider of providing the care. Such items may include, but not be limited to, food, shelter, nursing care, drugs, burial and incidentals.(3) Describe the health and financial conditions upon which the provider may have the resident relinquish his space in the designated facility.(4) Describe the health and financial conditions required for a person to continue as a resident.(5) Describe the circumstances under which the resident will be permitted to remain in the facility in the event of financial difficulties of the resident.(6) State the fees that will be charged if the resident marries while at the designated facility, the terms concerning the entry of a spouse to the facility and the consequences if the spouse does not meet the requirements for entry.(7) Provide that the agreement may be canceled upon the giving of notice of cancellation of at least 30 days by the provider or the resident. If an agreement is canceled because there has been a good faith determination in writing, signed by the medical director and the administrator of the facility, that a resident is a danger to himself or others, only such notice as is reasonable under the circumstances shall be required.(8) Provide in clear and understandable language, in print no smaller than the largest type used in the body of said agreement, the terms governing the refund of any portion of the entrance fee.(9) State the terms under which an agreement is canceled by the death of the resident. The agreement may contain a provision to the effect that, upon the death of the resident, the moneys paid for the continuing care of such resident shall be considered earned and become the property of the provider.(10) Provide for advance notice to the resident, of not less than 30 days, before any change in fees or charges or the scope of care or services may be effective, except for changes required by State or Federal assistance programs.(11) Provide that charges for care paid in one lump sum shall not be increased or changed during the duration of the agreed upon care, except for changes required by State or Federal assistance programs.(b) A resident shall have the right to rescind a continuing-care agreement, without penalty or forfeiture, within seven days after making an initial deposit or executing the agreement. A resident shall not be required to move into the facility designated in the agreement before the expiration of the seven-day period.(c) If a resident dies before occupancy date, or through illness, injury or incapacity is precluded from becoming a resident under the terms of the continuing-care agreement, the agreement is automatically rescinded and the resident or his legal representative shall receive a full refund of all moneys paid to the facility, except those costs specifically incurred by the facility at the request of the resident and set forth in writing in a separate addendum, signed by both parties to the agreement.(d) No agreement for care shall permit dismissal or discharge of the resident from the facility providing care prior to the expiration of the agreement, without just cause for such a removal. "Just cause" shall include, but not be limited to, a good faith determination in writing, signed by the medical director and the administrator of the facility, that a resident is a danger to himself or others while remaining in the facility. If a facility dismisses a resident for just cause, the facility shall pay to the resident any refund due in the same manner as if the resident's agreement was terminated pursuant to this act.(e) No act, agreement or statement of any resident, or of an individual purchasing care for a resident under any agreement to furnish care to the resident, shall constitute a valid waiver of any provision of this act intended for the benefit or protection of the resident or the individual purchasing care for the resident.(f) Those agreements entered into prior to the effective date of this act or prior to the issuance of a certificate of authority to the provider shall be valid and binding upon both parties in accordance with their terms.1984, June 18, P.L. 391, No. 82, § 14, effective in 6 months.