Clarification of Virginia Insurance Code Section 38.2-4904 - Annual Disclosure Statements, issued August 17, 1990, § 38.2-4904

STEVEN T. FOSTER

COMMISSIONER OF INSURANCE

STATE CORPORATION COMMISSION

BUREAU OF INSURANCE

Box 1157

RICHMOND, VA 23209

TELEPHONE: (804) 786-3741

TDD/VOICE:

(804) 225-3806

August 17, 1990

ADMINISTRATIVE LETTER 1990-14

TO:

All

Continuing Care Retirement

Communities

("CCRCs")

Approved in Virginia

RE:

Clarification of Virginia Insurance Code Section 38.2-

4904 — Annual Disclosure Statements

Section 38.2-4904(A) of the Code of Virginia stipulates that within

four months following the end of the provider's fiscal year,

each

provider shall file with the Commission and make available by written

notice to each resident at no cost an annual disclosure statement

w hich

shall contain the information required for the

initial

disclosure statement.

In addition, Virginia Code Section 38.2-4904(D)

states that any amendments to a filed disclosure statement must be

filed with the Commission before it is delivered to any resident or

prospective resident and that the provider must notify each resident

of the existence of the amendments.

Accordingly, each resident is entitled, without charge, to his or her

own copy of the annual disclosure statement, including any amendments,

upon request by the resident of the provider.

Upon the provider

giving written notice to each resident advising that the annual

disclosure statement is available and after a request by the resident

for a copy thereof, the provider must furnish the resident with a

gratis copy of the statement.

Administrative Letter 1990-14

August 17, 1990

Page Two

We hope that this letter will clarify the requirements of Virginia

Code Section 38.2-4904.

Should you have any questions regarding the

contents of this letter, please direct them, in writing, to:

Andy R. Delbridge, CFE, CIE, FLMI

Supervisor, Company Licensing

& Regulatory Compliance

Financial Regulation Division

P. O. Box 1157

Richmond, VA 23209

Sincerely,

Steven T. Foster

Commissioner of Insurance