Required Notifications

Required Notifications to the Commissioner and Residents

Article 64A of Chapter 58 of the North Carolina General Statutes requires continuing care providers to notify the North Carolina Department of Insurance, and in certain circumstances residents, when specified events or changes occur.

These notification requirements are intended to ensure timely regulatory awareness of events that may affect a provider’s financial condition, operations, governance, or ability to meet continuing care obligations, and to ensure that residents receive appropriate notice of material developments.

Mandatory Notifications to the Commissioner and Residents

N.C. Gen. Stat. § 58-64A-220

A provider must notify the Commissioner and all residents in writing within 10 business days whenever any of the following occur

  • Failure to maintain the required operating reserve under Article 64A
  • Violation of, or request for modification, waiver, or extension of, any material covenant or material payment term contained in a debt agreement of the provider or any obligated group of which the provider is a member
  • Entrance fee refunds that become more than 30 days contractually past due
  • A plan to reduce the number of any type of living unit by 20 percent (20%) or more
    • The notification must describe the reasons for the reduction and the effect, if any, on residents and the provider’s financial condition
  • A change to the provider’s name or the name of a continuing care retirement community operated by the provider in this State, including the adoption of an assumed business name
  • Initiation of any proceeding for the denial, suspension, or revocation of a license or permit required to operate all or part of a continuing care retirement community in this State

Notification of Material Changes of Deviations

N.C. Gen. Stat. § 58-64A-225

Applicants and providers must notify the Commissioner within 10 business days after becoming aware of any material change or deviation in information previously submitted to the Commissioner under Article 64A.

A material change or deviation includes any change or extraordinary occurrence that:

  • Creates or could create a hazardous condition, or
  • Causes or could cause a continuing care retirement community or proposed expansion to no longer be financially viable

Within 30 days after receiving notice of a material change or deviation, the Commissioner will advise the applicant or provider in writing whether additional action is required.

Failure to provide required notice of a material change or deviation may result in the suspension of approvals, certificates, licenses, or permits until the Department completes its review.

Form and Content of Notifications

Unless otherwise directed by the Commissioner, required notifications should:

  • Be submitted in writing
  • Clearly describe the event or change giving rise to the notification
  • Identify the date the provider became aware of the event or change
  • Include any supporting documentation necessary to explain the matter

Where resident notice is required, providers are responsible for ensuring that residents receive timely, clear, and accurate written notice consistent with statutory requirements

Important Note

Submission of a notification does not constitute approval or a determination by the Commissioner regarding the event or change reported. Providers remain responsible for complying with all applicable requirements of Article 64A unless and until otherwise directed by the Commissioner.

Questions

Questions regarding notification requirements should be directed to the Department’s Financial Oversight and Special Entities Division.

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