TITLE XXXVII
INSURANCE

CHAPTER 420-D
CONTINUING CARE COMMUNITIES

Section 420-D:20

    420-D:20 Civil Liability. –
I. In the following circumstances, a provider or his agent shall be liable for damages, entrance fees with any accrued interest, and attorneys' fees, plus any other fees paid in advance of receipt of services:
(a) If the provider or agent enters into contracts for continuing care for a facility that does not have a certificate of authority under this chapter;
(b) If he did not deliver a disclosure statement before entering into a contract; or
(c) If a disclosure statement is misleading and induces acceptance of a contract for continuing care or induces payment of any money or transfer of anything of value by a resident or prospective resident.
II. Negligent misrepresentation or omission shall not preclude recovery under this section.
III. An action pursuant to this section may be avoided if the provider, upon written approval of the commissioner, makes a good faith offer to refund all fees and costs listed in paragraph I. Failure of a resident or prospective resident to accept such an offer within 60 days shall preclude further action by such resident or prospective resident. Any action brought pursuant to this section shall be in accordance with applicable state law. An action brought under this chapter shall not limit the liability of the provider under other state laws. A private party shall not be liable by implication unless expressly permitted under this chapter.

Source. 1988, 44:2. 1999, 249:3, eff. Sept. 7, 1999.