(a) No provider shall engage in the business of offering or providing continuing care in the District without a license from the Department of Insurance, Securities, and Banking indicating that the provider meets the financial requirements under this chapter for engaging in the business of providing continuing care services.
(b) No provider shall be licensed by the Department of Insurance, Securities, and Banking unless the applicant demonstrates to the satisfaction of the Commissioner that it has:
(1) A business plan that reasonably demonstrates that it shall be able financially to provide the services that it contracts to provide;
(2) Sufficient capitalization and predictable cash flow to carry out its business plan; and
(3) Experienced managers and qualified financial experts associated with the organization who are capable of ensuring the proper operation of the facility.
(c) Each provider shall file with the Commissioner an application for a license on forms prescribed by rule and within a period of time prescribed by rule. The application shall include the disclosure statement meeting the requirements of this chapter and other financial and facility development information required by the rule. The application for a license shall be accompanied by an application fee established by rule.
(d) Upon receipt of the complete application for a license in proper form, the Commissioner shall, within 10 business days, issue a notice of filing to the applicant. Within 90 days of the notice of filing, the Commissioner shall enter an order issuing the license or rejecting the application. If the Commissioner fails to act within 90 days of the notice of filing, the application shall be deemed denied.
(e) If the Commissioner determines that any of the requirements of this chapter have not been met, the Commissioner shall notify the applicant of any defects in the application and the applicant shall have 30 days in which to correct the application. If the requirements are not met within the time allowed, the Commissioner may enter an order rejecting the application, which order shall include the findings of fact upon which the order is based and which shall not become effective until 20 days after the end of the 30-day period. During the 20-day period, the applicant may petition for reconsideration of the application and shall be entitled to a hearing.
(f) The provider shall provide to the Commissioner the report of an actuary that:
(1) Estimates the capacity of the provider to meet its contractual obligation to the residents; or
(2) Gives consideration to expected rates of mortality and morbidity, expected refunds, and expected capital expenditures in accordance with standards promulgated by the American Academy of Actuaries, within a 5-year forecast period.
(g) Any license issued pursuant to this section for a provider of continuing care services shall be issued as a Financial Services endorsement to a basic business license under the basic business license system as set forth in subchapter I-A of Chapter 28 of Title 47.
(h) Nothing in this chapter shall require the Commissioner to review the disclosure statement and the issuance of a license under this chapter shall not constitute an approval of the disclosure statement or of any of the statements therein.
(Apr. 5, 2005, D.C. Law 15-270, § 102, 52 DCR 799; Mar. 2, 2007, D.C. Law 16-191, § 67, 53 DCR 6794.)
Section ReferencesThis section is referenced in § 44-151.15.
Effect of AmendmentsD.C. Law 16-191, in subsec. (g), validated a previously made technical correction.