Adopting Actuarial Standards for States Charged with Oversight for CCRCs: Washington State’s Legislature Takes Another Important Step

The State of Washington is setting the stage for a strong CCRC environment by addressing core concerns raised by residents about financial soundness; the latest legislation requires Continuing Care and Life Plan Communities who offer “life care contracts,” to conduct “actuarial analyses” and to file written, certified reports. A central purpose of the process is to determine the company’s “ability to meet its overall contract obligations under life care contracts . . . under moderately adverse conditions,” in accordance with professional standards. See new Section 5 of the law.

Here is a link to the Legislature’s new bill, which will require actuarial reports prepared by qualified actuaries to accompany applications for both new and renewed registrations at two year intervals.

The new law will give the Office of the Insurance Commissioner a lead-in time of more than a year to develop a state review process for the new financial information.

Stay on top of the latest action on this law (and future events) with updates provided by the Washington Continuing Care Residents Association (WACCRA). While you are stopping by their website, I recommend also looking at WACCRA’s Consumer Guide to Continuing Care Retirement and Life Plan Communities. The 4th edition was updated recently andprovides an excellent discussion of how to evaluate and appreciate the promises made by these important senior living programs.