§ 8006. Termination of contract; notice

(a) A person who enters into a continuing care contract with a provider may voluntarily terminate the contract within 30 days of executing such contract, and shall receive a refund of all money paid according to the provisions of subdivision 8007(c)(1) of this title. A person may voluntarily terminate the contract at any other time subject to the applicable refund provisions of subdivisions 8007(c)(2) and (3) of this chapter.

(b) If the resident dies before the occupancy date or, through illness, injury, or incapacity, is precluded from becoming a resident under the terms of the continuing care contract, the contract shall terminate.

(c) A provider may terminate a contract only for good and sufficient cause. The provider shall give the resident at least 90 days' written notice prior to termination, and shall send a copy of the notice to the Department. Good and sufficient cause includes:

(1) a material failure on the part of the resident to abide by rules adopted for residents or a material breach by the resident of the continuing care contract, provided that failure to abide by the rules or contract that are caused, in whole or in part, by a diagnosable medical or psychiatric illness shall not be a basis for terminating the contract; and

(2) making any material misrepresentation or omission in connection with the application forms, financial statements, or other information submitted by the resident, except that the provisions of the contract, exclusive of financial statements, shall be incontestable after it has been in force during the lifetime of the resident for a period of two years from its date of execution. (Added 1987, No. 247 (Adj. Sess.), § 1.)