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HB 719

An Act prohibiting discriminatory practices against applicants and enrollees under certain insurance policies based on claims or prescriptions involving prophylaxis HIV medication.

2025-2026 Regular Session Introduced by Lisa Borowski and 23 co-sponsors

Establishes a licensing and oversight framework for NC CCRCs, requiring actuarial financials and escrow for entrance fees to protect residents and boost regulator scrutiny.

Referred to Insurance
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Bill Summary · HB 719

HB 719 — Continuing Care Retirement Communities Act (NC)

Status: Filed (1st reading/referred to committees). Filed Apr 2–3, 2025. Sponsor: Rep. Humphrey. (Bill would add Article 64A to Chapter 58 of the North Carolina General Statutes.)

Main purpose / intent

The bill establishes a comprehensive statutory framework for continuing care retirement communities (CCRCs) in North Carolina. Its stated goals are to (1) encourage development of CCRCs, and (2) protect older adults who pay substantial sums (e.g., entrance fees, deposits) for continuing care by requiring licensing, financial oversight, consumer protections, and regulatory monitoring by the North Carolina Department of Insurance.

Key provisions and changes

  • Repeals existing Article 64 and creates a new Article 64A (“Continuing Care Retirement Communities Act”) in Chapter 58.
  • Scope and applicability: Applies to providers (for‑profit and nonprofit) that offer continuing care — housing in independent living plus access, when needed, to higher levels of care (assisted living and/or nursing care), including continuing care at home programs.
  • Licensing and supervision: Requires providers offering continuing care in the State to obtain a license and be regulated and monitored by the Department of Insurance.
  • Financial standards and oversight:
    • Requires actuarial studies and actuarial opinions prepared in conformity with accepted actuarial standards of practice (explicitly citing Actuarial Standards of Practice No. 3, revised Jun 1, 2022).
    • Defines required financial documents and terms: audited financial statements, entrance fees, deposits, escrow agreements, escrow agents, annual debt service, debt service coverage ratio, etc.
    • Establishes concepts of “actuarial balance” and obligations for providers to demonstrate ongoing financial solvency and appropriate treatment of entrance fees/deposits.
  • Consumer protections and contract rules:
    • Defines binding reservation agreements, continuing care contracts, continuing care at home contracts, cancellations, and entrance‑fee handling.
    • Requires that entrance fees and certain deposits be subject to escrow arrangements (escrow agent and escrow agreement defined).
  • Governance and control: Sets definitions for control, controlling person, affiliates, and related governance terminology that support oversight and licensing decisions.
  • Enforcement and administrative authority: Empowers the Commissioner/Department of Insurance to implement the licensing and oversight program (details and penalties are included elsewhere in the draft statute beyond the initial definitions).

Who would be affected

  • Residents and prospective residents of CCRCs (greater consumer protections and financial disclosures).
  • CCRC providers (both nonprofit and for‑profit) — new licensing, reporting, actuarial and escrow requirements; potential capital and administrative compliance costs.
  • Actuaries, independent auditors, escrow agents, lenders, and investors interacting with CCRCs.
  • The Department of Insurance (added regulatory duties and enforcement obligations).

Procedural / timeline notes

  • Filed in early April 2025 and referred to the Department of Insurance committee pathway (Insurance; if favorable, Finance; if favorable, Rules).
  • The bill creates a new statutory licensing and oversight structure; implementation would require rulemaking and administrative set‑up by the Department of Insurance if enacted.

Potential impacts (high level)

  • Increases consumer protections for older adults contracting for long‑term continuing care by formalizing financial oversight and licensing.
  • Imposes compliance costs on providers (actuarial studies, audits, escrow arrangements), which could affect development, pricing, or availability of some CCRC offerings.
  • Improves regulatory clarity for lenders and investors evaluating CCRC credit risk.

If you want, I can: (1) extract and summarize specific licensing, reporting, escrow, or enforcement sections (if you provide the later parts of the bill), or (2) draft a one‑page explainer for residents comparing rights under current law vs. the proposed Act.

Compiled from official sources — confirm details with the bill’s official record.

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