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Financial Security


Life insurance policyholders and bank depositors are protected from loss in the event of the failure of an insurance company or bank.

However, CCRC residents and participants in other forms of Entry Fee Continuing Care Contracts are left fully at risk. The Model Laws codify standards that can mandate sound operation for CCRCs.

They also include a Guaranty Structure to shield residents from loss if the management fails financially. The Guaranty Structure proposed is modeled after the time-tested and proven structure for life insurance companies.

These key advancements could elevate the senior housing and services industry to be the trusted provider of services to the elderly that our aging society will need for the years ahead:

  • the combined effect of legislatively mandated financial operating standards,
  • an early intervention insolvency avoidance structure, and
  • improved regulatory tools for those charged with oversight of the industry.


Several of the NaCCRA Model Laws provide needed protections to prospective and existing CCRC residents. Of course, improved financial security is implicit in many of the proposed laws, but it is more central to some than to others.


Among them are:


  • the Model Financial Guarantee Act,
  • the Model Standard Valuation Act,
  • the Model Standard Nonforfeiture Act,
  • the Model Prepaid Medical Reserve Act,
  • the Model Continuing Care at Home Authorization Act,
  • the Model CCRC Investment Act,
  • the Model Financial Responsibility Act,
  • the Model CCRC Fiduciary Act, and
  • the Model Financial Viability and Rehabilitation Act.


If you’re interested in this topic, you may want to read “Two Views on Finances” on this website.