Continuing care retirement

AN ACT Relating to increasing regulatory oversight of continuing 1
care retirement communities; amending RCW 18.390.010, 18.390.030, 2
18.390.040, 18.390.050, and 48.02.065; adding a new section to 3
chapter 18.390 RCW; adding a new section to chapter 48.02 RCW; and 4
providing an effective date. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 18.390.010 and 2016 c 183 s 1 are each amended to 7
read as follows: 8
The definitions in this section apply throughout this chapter 9
unless the context clearly requires otherwise. 10
(1) "Application fee" means a fee charged to an individual or 11
individuals prior to the execution of a residency agreement, apart 12
from an entrance fee. 13
(2) "Care" means nursing, medical, or other health-related 14
services, protection or supervision, assistance with activities of 15
daily living, or any combination of those services.16
(3) "Continuing care" means directly providing or indirectly 17
making available, upon payment of an entrance fee and under a 18
residency agreement, housing and care for a period of greater than 19
one year. 20
H-2706.2
HOUSE BILL 2384
State of Washington 69th Legislature 2026 Regular Session
By Representatives Macri, Reed, Street, Thomas, Ormsby, Scott,
Goodman, Hill, Thai, and Bernbaum
Prefiled 01/09/26. Read first time 01/12/26. Referred to Committee
on Health Care & Wellness.
p. 1 HB 2384
(4) "Continuing care retirement community" or "life plan 1
community" means an entity that agrees to provide continuing care to 2
a resident under a residency agreement with an entrance fee . 3
"Continuing care retirement community" or "life plan community" does 4
not include an assisted living facility licensed under chapter 18.20 5
RCW that does not directly, or through a contractual arrangement with 6
a separately owned and incorporated skilled nursing facility, offer 7
or provide services under chapter 74.42 RCW. 8
(5) "Department" means the department of social and health 9
services. 10
(6) "Entrance fee" means an initial or deferred transfer to a 11
continuing care retirement community of a sum of money or other 12
property made or promised to be made as full or partial consideration 13
for acceptance of one or more residents in a continuing care 14
retirement community. "Entrance fee" does not include deposits of ten 15
thousand dollars or less or any amount that is based on rental or 16
lease payments of one month or more. 17
(7) "Life care contract," also known as a type A contract, means 18
a contract to provide a person, for the duration of the person's life 19
or for a term in excess of one year, nursing services, medical 20
services, or personal care services in addition to board and lodging 21
for the person in a continuing care retirement community, conditioned 22
upon payment of an entrance fee in addition to or in lieu of the 23
payment of regular periodic charges for the care and services 24
involved, unless the contract expressly excludes some or all of such 25
services.26
(8) "Office" means the office of the insurance commissioner.27
(9) "Prospective resident" means a person who has completed an 28
application for admission to a continuing care retirement community 29
and makes a refundable deposit to reserve a unit, excluding 30
applicable administrative fees. 31
(((8))) (10) "Residency agreement" means a contract between a 32
continuing care retirement community and a resident for the provision 33
of continuing care for a period of greater than one year.34
(((9))) (11) "Resident" means a person who enters into a 35
residency agreement with a continuing care retirement community or 36
who is designated in a residency agreement to be a person being 37
provided with continuing care. 38
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Sec. 2. RCW 18.390.030 and 2025 c 218 s 2 are each amended to 1
read as follows: 2
(1) An applicant for a registration as a continuing care 3
retirement community must submit the following materials to the 4
department: 5
(a) A written application to the department providing all 6
necessary information on a form provided by the department;7
(b) Information about the licensed assisted living facility 8
component of the continuing care retirement community and, if the 9
continuing care retirement community operates a nursing home, 10
information about that component; 11
(c) Copies of any residency agreements that the continuing care 12
retirement community intends to use for the certification period;13
(d) A written statement indicating whether the residency 14
agreement includes an entrance fee in lieu of payment for future care 15
and services and, if so, whether those services are covered 16
completely or partially by the entrance fee; 17
(e) A copy of the disclosure statement that includes current 18
information required by RCW 18.390.060; 19
(f)(i) Except as provided in (f)(ii) of this subsection, copies 20
of audited financial statements for the two most recent fiscal years. 21
The audited financial statement for the most current period may not 22
have been prepared more than eighteen months prior to the date that 23
the continuing care retirement community applied for its current 24
registration; 25
(ii) If the continuing care retirement community:26
(A) Has obtained financing, but has been in operation less than 27
two years, a copy of the audited financial statement for the most 28
current period, if available, and an independent accountant's report 29
opinion letter that has evaluated the financial feasibility of the 30
continuing care retirement community; or 31
(B) Has not obtained financing, a summary of the actuarial 32
analysis for the new continuing care retirement community stating 33
that the continuing care retirement community is in satisfactory 34
actuarial balance; 35
(g) An attestation by a management representative of the 36
continuing care retirement community that the continuing care 37
retirement community is in compliance with the disclosure 38
notification requirements of RCW 18.390.060; ((and))39
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(h) Beginning July 1, 2027, if the applicant offers residency 1
agreements that include life care contracts, an actuarial analysis 2
for review pursuant to the process in section 5 of this act. The 3
actuarial analysis must have been prepared by a qualified actuary and 4
include an actuarial memorandum and certification. The actuarial 5
analysis submission requirement applies to the applicant's initial 6
registration application and every other subsequent registration 7
renewal application. The department may stagger the initial 8
imposition of the requirements of this section, as applied to renewal 9
applications, to allow the office to conduct its responsibilities 10
under section 5 of this act on a regular basis without fluctuations 11
in workflow; and12
(i) Payment of any registration fees associated with the 13
department's cost of registering continuing care retirement 14
communities. 15
(2) The department shall base its decision to issue a 16
registration on the completeness of the application and, as required, 17
the receipt of a notice of a satisfactory actuarial analysis review 18
from the office under section 5 of this act . If an application is 19
incomplete, the department shall inform the applicant and give the 20
applicant an opportunity to supplement its submission. An applicant 21
may appeal a decision of the department to deny an application for 22
registration. 23
(3) The department shall issue the registration within ((sixty)) 24
60 days of the receipt of a complete application, payment of fees, 25
submission of disclosures, residency agreements, ((and)) the 26
attestation, and, as required, the actuarial analysis. If an 27
application requires review of the actuarial analysis by the office 28
and all other materials have been deemed sufficient by the 29
department, the department may issue a provisional registration while 30
the results of the review of the actuarial analysis are pending . The 31
department's failure to timely issue a registration may not cause a 32
delay in the change of ownership and ongoing operation of the 33
continuing care retirement community. 34
(4) Registration is valid for two years. 35
(5) Registration is not transferable. 36
(6) Materials submitted pursuant to this section are not subject 37
to disclosure under the public records act, chapter 42.56 RCW.38
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Sec. 3. RCW 18.390.040 and 2016 c 183 s 4 are each amended to 1
read as follows: 2
(1) The department shall: 3
(a) Register an entity that submits a complete application that 4
includes all of the materials required in RCW 18.390.030 and 5
receives, as required, a notice of satisfactory actuarial analysis 6
review from the office under section 5 of this act;7
(b) Review the disclosure statements submitted by applicants for 8
an initial or renewal registration to operate a continuing care 9
retirement community for completeness; 10
(c) Establish and collect a fee that is sufficient to cover the 11
department's costs associated with administering the requirements of 12
this chapter , including the costs to reimburse the office for its 13
costs associated with providing actuarial reviews under section 5 of 14
this act; and 15
(d) Create and maintain an online listing that is readily 16
available to the public of the names and addresses of continuing care 17
retirement communities that are registered with the department.18
(2) The department's registration activities consist of reviewing 19
an application for completeness and receipt of actuarial analysis 20
review notices from the office under section 5 of this act and do not 21
signify that the department has otherwise issued a certification or 22
license to the continuing care retirement community or any of its 23
component parts. 24
(3) The department may adopt rules to administer this chapter.25
Sec. 4. RCW 18.390.050 and 2016 c 183 s 5 are each amended to 26
read as follows: 27
An entity that is not registered with the department may not 28
represent itself, or refer to itself in advertising and marketing 29
materials as a "registered continuing care retirement 30
community," ((or)) "continuing care retirement community," or "life 31
plan community" as defined by this chapter. 32
NEW SECTION. Sec. 5. A new section is added to chapter 18.390 33
RCW to read as follows: 34
(1) The department and the office shall collaborate to develop a 35
process for the department to transmit actuarial analyses received 36
under RCW 18.390.030(1)(h) to the office for review and for the 37
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office to return the results of the review to the department for 1
consideration in its registration decision. 2
(2) The department shall adopt standards for the contents of the 3
actuarial analysis to be submitted. The standards shall be based on 4
information that the office determines is necessary to conduct its 5
review in subsection (3) of this section. 6
(3)(a) The office shall develop standards for the review of 7
actuarial analyses received from the department. The standards must 8
establish a process for determining the applicant's ability to meet 9
its overall contract obligations under its residency agreements in 10
accordance with currently accepted actuarial standards of practice, 11
such as those adopted by the actuarial standards board. The standards 12
shall consider whether the applicant's actuarial balance is 13
satisfactory and reflects liabilities that are sufficient to cover 14
obligations under moderately adverse conditions during the testing 15
period. The term "moderately adverse conditions" anticipates 16
unfavorable, but not extreme, events with a reasonable probability of 17
occurring during the testing period. 18
(b) The office shall review actuarial analyses as required under 19
RCW 18.390.030(1)(h). 20
(i) If the office's review of the applicant's actuarial analysis 21
determines that the applicant will be able to meet its overall 22
contract obligations under the standard established in (a) of this 23
subsection, it will notify the department that the applicant has 24
satisfied the review requirement in RCW 18.390.030(2).25
(ii) If the office's review of the applicant's actuarial analysis 26
determines that the applicant will not be able to meet its contract 27
obligations under the standard established in (a) of this subsection, 28
it will notify the department that the applicant has not satisfied 29
the review requirement in RCW 18.390.030(2) and notify the applicant 30
of the right to an appeal of the decision. 31
(c) Any appeal by an applicant regarding a determination under 32
(b)(ii) of this subsection that the applicant has not satisfied the 33
review requirement in RCW 18.390.030 shall be made to the department.34
(d) The office is not required to prepare any materials, other 35
than the review of the actuarial analysis, or review any materials, 36
other than the actuarial analysis prepared by a qualified actuary and 37
provided by the applicant. 38
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NEW SECTION. Sec. 6. A new section is added to chapter 48.02 1
RCW to read as follows: 2
The insurance commissioner is authorized to perform functions 3
required under chapter 18.390 RCW related to the review of actuarial 4
analyses submitted by applicants for registration as a continuing 5
care retirement community, including establishing standards for 6
actuarial materials to be submitted and for the qualifications of the 7
actuaries preparing the actuarial analyses. The insurance 8
commissioner may adopt rules related to its responsibilities under 9
chapter 18.390 RCW, as necessary. 10
Sec. 7. RCW 48.02.065 and 2024 c 123 s 1 are each amended to 11
read as follows: 12
(1) Documents, materials, or other information as described in 13
subsections (5), (6), (7), ((and)) (8), and (9) of this section are 14
confidential by law and privileged, are not subject to public 15
disclosure under chapter 42.56 RCW, and are not subject to subpoena 16
directed to the commissioner or any person who received documents, 17
materials, or other information while acting under the authority of 18
the commissioner. The commissioner is authorized to use such 19
documents, materials, or other information in the furtherance of any 20
regulatory or legal action brought as a part of the commissioner's 21
official duties. The confidentiality and privilege created by this 22
section and RCW 42.56.400(8) applies only to the commissioner, any 23
person acting under the authority of the commissioner, the national 24
association of insurance commissioners and its affiliates and 25
subsidiaries, regulatory and law enforcement officials of other 26
states and nations, the federal government, and international 27
authorities. 28
(2) Neither the commissioner nor any person who received 29
documents, materials, or other information while acting under the 30
authority of the commissioner is permitted or required to testify in 31
any private civil action concerning any confidential and privileged 32
documents, materials, or information subject to subsection (1) of 33
this section. 34
(3) The commissioner: 35
(a) May share documents, materials, or other information, 36
including the confidential and privileged documents, materials, or 37
information subject to subsection (1) of this section, with (i) the 38
national association of insurance commissioners and its affiliates 39
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and subsidiaries, (ii) regulatory and law enforcement officials of 1
other states and nations, the federal government, and international 2
authorities, and (iii) agencies of this state, if the recipient 3
agrees to maintain the confidentiality and privileged status of the 4
document, material, or other information; 5
(b) May receive documents, materials, or information, including 6
otherwise either confidential or privileged, or both, documents, 7
materials, or information, from (i) the national association of 8
insurance commissioners and its affiliates and subsidiaries, and (ii) 9
regulatory and law enforcement officials of other states and nations, 10
the federal government, and international authorities and shall 11
maintain as confidential and privileged any document, material, or 12
information received that is either confidential or privileged, or 13
both, under the laws of the jurisdiction that is the source of the 14
document, material, or information; and 15
(c) May enter into agreements governing the sharing and use of 16
information consistent with this subsection. 17
(4) No waiver of an existing privilege or claim of 18
confidentiality in the documents, materials, or information may occur 19
as a result of disclosure to the commissioner under this section or 20
as a result of sharing as authorized in subsection (3) of this 21
section. 22
(5) Documents, materials, or information, which is either 23
confidential or privileged, or both, which has been provided to the 24
commissioner by (a) the national association of insurance 25
commissioners and its affiliates and subsidiaries, (b) regulatory or 26
law enforcement officials of other states and nations, the federal 27
government, or international authorities, or (c) agencies of this 28
state, is confidential and privileged only if the documents, 29
materials, or information is protected from disclosure by the 30
applicable laws of the jurisdiction that is the source of the 31
document, material, or information. 32
(6) Working papers, documents, materials, or information produced 33
by, obtained by, or disclosed to the commissioner or any other person 34
in the course of a financial or market conduct examination, or in the 35
course of financial analysis or market conduct desk audit, are not 36
required to be disclosed by the commissioner unless cited by the 37
commissioner in connection with an agency action as defined in RCW 38
34.05.010(3). The commissioner shall notify a party that produced the 39
documents, materials, or information five business days before 40
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disclosure in connection with an agency action. The notified party 1
may seek injunctive relief in any Washington state superior court to 2
prevent disclosure of any documents, materials, or information it 3
believes is confidential or privileged. In civil actions between 4
private parties or in criminal actions, disclosure to the 5
commissioner under this section does not create any privilege or 6
claim of confidentiality or waive any existing privilege or claim of 7
confidentiality. 8
(7) Documents, materials, or information provided to the 9
commissioner by the federal government related to emergency 10
management, hazard mitigation, and the national flood insurance 11
program are confidential by law and privileged, and are not subject 12
to public disclosure under chapter 42.56 RCW. 13
(8) Data requested by the commissioner from property and casualty 14
entities regulated by the commissioner for the purpose of 15
understanding and studying insurance market conditions outside the 16
context of market conduct action is confidential by law and 17
privileged and is not subject to public disclosure under chapter 18
42.56 RCW. Nothing in this section prohibits the commissioner from 19
preparing and publishing reports, analysis, or other documents using 20
the data received from individual property and casualty companies so 21
long as the data in the report is in aggregate form and does not 22
permit the identification of information related to individual 23
companies. Data in the aggregate form are deemed open records 24
available for public inspection. Nothing in this section affects, 25
limits, or amends the commissioner's authority under chapter 48.37 26
RCW. 27
(9) Documents, materials, and information related to the 28
commissioner's responsibility to review actuarial analyses under 29
section 3 of this act as provided to the commissioner directly by 30
applicants for registration as a continuing care retirement community 31
under chapter 18.390 RCW or indirectly by the department of social 32
and health services are confidential by law and privileged, and are 33
not subject to public disclosure under changer 42.56 RCW.34
(10)(a) After receipt of a public disclosure request, the 35
commissioner shall disclose the documents, materials, or information 36
under subsection (6) of this section that relate to a financial or 37
market conduct examination undertaken as a result of a proposed 38
change of control of a nonprofit or mutual health insurer governed in 39
whole or in part by chapter 48.31B RCW. 40
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(b) The commissioner is not required to disclose the documents, 1
materials, or information in (a) of this subsection if:2
(i) The documents, materials, or information are otherwise 3
privileged or exempted from public disclosure; or 4
(ii) The commissioner finds that the public interest in 5
disclosure of the documents, materials, or information is outweighed 6
by the public interest in nondisclosure in that particular instance.7
(10) Any person may petition a Washington state superior court to 8
allow inspection of information exempt from public disclosure under 9
subsection (6) of this section when the information is connected to 10
allegations of negligence or malfeasance by the commissioner related 11
to a financial or market conduct examination. The court shall conduct 12
an in-camera review after notifying the commissioner and every party 13
that produced the information. The court may order the commissioner 14
to allow the petitioner to have access to the information provided 15
the petitioner maintains the confidentiality of the information. The 16
petitioner must not disclose the information to any other person, 17
except upon further order of the court. After conducting a regular 18
hearing, the court may order that the information can be disclosed 19
publicly if the court finds that there is a public interest in the 20
disclosure of the information and the exemption of the information 21
from public disclosure is clearly unnecessary to protect any 22
individual's right of privacy or any vital governmental function.23
NEW SECTION. Sec. 8. This act takes effect July 1, 2027.24
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