Sarasota Senior AdvisorCan I cancel a Florida life plan community contract after signing?
Yes: under s. 651.055, a resident may rescind a continuing care contract within 7 days after signing and receive a full refund of any money paid, without penalty, and a prospective resident who signs but has not moved in is protected by the same 7-day window.
Every continuing care contract and addendum must be approved by the Office of Insurance Regulation before a provider may use it, so the form you are handed has been reviewed by the state, though the business terms are the provider's.
How are entrance fee refunds calculated in Florida?
For a resident without a transferable membership or ownership right who has moved in, Florida requires a pro-rated refund in which the provider keeps no more than 2 percent of the entrance fee per month of occupancy plus a processing fee of up to 5 percent, unless the contract uses an approved alternative refund plan.
Contracts that keep 1 percent or less per month may tie the refund to the next entrance fee received for a similar unit, with time limits for contracts signed on or after January 1, 2016. Read the refund section, which the law requires to be printed in type at least as large as the contract body.
How long does a Florida CCRC have to pay a refund?
For contracts entered on or after January 1, 2016 under the standard pro-rated method, refunds must be paid within 90 days after the contract ends and the unit is vacated; refunds tied to resale of a like unit must be paid within 30 days after the next entrance fee for such a unit, subject to a maximum period stated in the contract.
Older contracts may follow earlier timing rules unless the resident signed an approved addendum.
What must a Florida continuing care contract disclose?
It must list all property transferred and its value, every service provided and which cost extra, the health and financial conditions for admission and continued residency, terms if the resident cannot pay, fees if the resident marries, cancellation terms with at least 30 days' notice, and the refund terms.
Ask for the provider's most recent annual report filed with OIR, which shows its financial condition, and its minimum liquid reserve calculation under s. 651.035.
At a glance
| Florida's contract law guarantees | Florida's contract law does not guarantee | |
|---|---|---|
| Cooling off | A 7-day full-refund rescission period | A refund of the full entrance fee after move-in |
| Refund math | No more than 2% per month plus up to 5% processing (standard method) | Any particular refund plan |
| Approval | OIR approval of every contract form | OIR approval of prices |
Sources include Chapters 408, 429 and 651 of the Florida Statutes, Fla. Admin. Code chapters 59A-36 and 65A-2, AHCA, DCF, OIR and Elder Affairs pages, CareScout and VA rate tables as cited above; see our editorial standards.
