Sec. 350.10. Fee schedule submission

(a) Fee schedules submitted pursuant to an approved rating methodology.

(1) The fee schedule shall be submitted to the superintendent at least 45 days prior to the scheduled effective date of the fee schedule and shall include the following:

(i) a certification by an officer of the continuing care retirement community, or of the management company for the community, that the submission has been prepared pursuant to an approved rating methodology; and

(ii) supporting exhibits showing how the rating methodology was applied and how the rating methodology calculations produced the fees in the schedule submitted.

(2) Provided that the submission is in accordance with the approved rating methodology, the submission shall be deemed approved unless the superintendent notifies the continuing care retirement community of deficiencies in the submission within 30 days of receipt of the submission. If the community does not correct all deficiencies within 30 days from the date of the deficiency letter, the fee submission shall be deemed disapproved.

(3) A rating methodology shall not be used by a continuing care retirement community until it has been approved by the superintendent.

(4) A rating methodology that is submitted to the superintendent for approval shall include all of the following items:

(i) the specific source data to be used in the calculations;

(ii) the step-by-step calculations that shall be followed. The calculation steps shall be coordinated with any plan that an operator submits to the superintendent pursuant to section 350.8 of this Part;

(iii) the minimum and maximum fee schedule changes resulting from the rating methodology;

(iv) the timing of when the rating methodology will be applied to determine an updated fee schedule;

(v) a discussion of the appropriateness of the proposed methodology, how the calculation steps are impacted by the level of earned surplus, and how the proposed methodology will maintain the community in satisfactory actuarial balance or achieve satisfactory actuarial balance (if the community is not currently in satisfactory actuarial balance); and

(vi) an illustrative numerical example showing the application of the methodology and how it produces the resulting revised fee schedule.

(5) A continuing care retirement community that does not have an approved rating methodology may develop and submit a rating methodology to the superintendent for approval.

(6) An already approved rating methodology may be revised by submitting a revised rating methodology to the superintendent for approval.

(7) A previously approved rating methodology may be withdrawn by submitting a written notice of withdrawal to the superintendent, and the rating methodology shall not be used beginning with the effective date of the withdrawal notice.

(8) A continuing care retirement community that has an approved rating methodology shall either use the approved rating methodology to determine an updated fee schedule according to the timing provision incorporated into the rating methodology and submit a fee schedule pursuant to subdivision (a) of this section, or shall submit a fee schedule pursuant to subdivision (b) of this section.

(9) Submission of a rating methodology to the superintendent for approval is optional. A continuing care retirement community that does not have an approved rating methodology shall submit all fee schedule changes pursuant to subdivision (b) of this section.

(b) Fee schedules submitted outside of an approved rating methodology.

(1) The fee schedule shall be submitted to the superintendent at least 75 days prior to the proposed effective date of the fee schedule.

(2) Sufficient documentation shall be included with the submission to justify the need for the fee change and the magnitude of the proposed fee change.

(3) The fee schedule shall not be implemented until it has been approved by the superintendent.

(c) Each fee schedule submission shall include the following information:

(1) for each continuing care retirement contract type and continuing care at home contract type an exhibit showing the current fee, the revised fee, and the percentage change in the fee. Entrance fees and monthly care fees shall be shown separately. Entrance fees shall be shown separately for the residential component and the health care component, if applicable. Per diem health care fees shall also be shown separately, if applicable;

(2) for each continuing care retirement contract type and each continuing care at home contract type an exhibit showing the overall weighted average current entrance fee and overall weighted average revised entrance fee, separately for first persons and second persons, or single occupancies and joint occupancies, and the percentage change in each of the overall weighted average entrance fees;

(3) for each continuing care retirement contract type an exhibit showing the overall weighted average current monthly care fee and overall weighted average revised monthly care fee, separately for first persons and second persons, or single occupancies and joint occupancies, and the percentage change in each of the overall weighted average monthly care fees;

(4) the effective date of the current fees and the proposed effective date of the revised fees shall be clearly indicated; and

(5) the material indicated in subdivision (a) or (b) of this section, as appropriate.