554.955 Offer or sale of continuing care agreement; prohibited acts.

287 words·~1 min read·/mi/chapter-554/554-955

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 55.

(1)A person shall not, in connection with the offer or sale of a continuing care agreement, directly or indirectly do any of the following:

(a)Employ a device, scheme, or artifice to defraud.

(b)Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit.

(c)Make an untrue statement of a material fact or fail to state a material fact necessary in order to make the statements made not misleading, in the light of the circumstances under which they are made, including an untrue statement of a material fact or failure to state a material fact in any application, notice, or report filed with the department under this act.

(d)Fail to notify the department of a reportable change as required by section 33.

(e)Publish any advertisement or marketing communication that contains false, fraudulent, misleading, or deceptive information. This subdivision does not apply to a person that publishes an advertisement or marketing communication on behalf of a continuing care community and is not affiliated with the continuing care community.

(2)Each of the following practices constitutes a false, fraudulent, misleading, or deceptive advertising or marketing communication for purposes of subsection (1)(e):

(a)A statement or inference that the purchase of a membership in a continuing care community is a safe investment.

(b)A statement or inference that a continuing care community is affiliated with a religious, nonprofit, or proprietary organization if it is not so affiliated.

(c)A material misrepresentation of services, care, or amenities, provided or to be provided by a continuing care community.

History: 2014, Act 448 , Eff. Apr. 2, 2015