Section Ins 1805.01 - Liquid Reserves(a) When a CCRC calculates whether the value of its liquid reserves meets the amount RSA 420-D:8 requires, the CCRC may include the values of the assets listed below: (1) Cash held in an account of a financial institution;(2) The following assets that can be liquidated, based upon the net value after liquidation: a. Certificates of deposit issued by a financial institution;b. Money-market funds issued by an "investment company" as defined by U.S.C. Title XV, Section 80a-3;c. Acceptable negotiable securities which shall include only United States government obligations and corporate debt obligations rated A or above in Moody's or Standard and Poor's corporate bond rating publication or a 1 or 2 rating by the NAIC valuation of securities publication; andd. Commercial paper in the form of promissory obligations of an issuer with an original maturity date not exceeding 9 months from the date of issuance, having the highest rating in a rating publication indicated in c. above.(b) For the purpose of determining whether the assets included in the liquid reserve account of a CCRC satisfy the liquid reserve requirement of RSA 420-D:8, such assets held in the form of cash shall be valued at their actual value in U.S. currency. Assets held in any other form shall be valued at their market value.(c) For the purpose of determining the amount of the liquid reserve that a CCRC shall maintain, the term "12 months principal and interest payments" appearing in RSA 420-D:8 means the CCRCs liabilities which would be reported to show the statutory liquid reserve as of the end of current year on the balance sheet that would be included with the actuarial report, as required by Ins 1804, as if an actuarial report had been prepared for the 12 calendar months ending on the last day of the previous month.(d) For the purpose of determining the amount of the liquid reserve that a CCRC shall maintain, the term "that portion of 2 months' operating expenses which relates to life care residents" appearing in RSA 420-D:8 means the amount of the estimated operating expenses for the 2 calendar months following the current month.(e) The liquid reserve required at any point in time shall be the sum of the amounts determined in accordance with (c) and (d) above. This amount shall be referred to as the minimum liquid reserve.(f) The commissioner shall require placement of the liquid reserve in an escrow account whenever the commissioner finds through an audit that a CCRC is experiencing financial difficulty.(g) For the purpose of (f) above, financial difficulty shall include, but not be limited to, any one or more of the following circumstances: (1) Payments on accounts payable or notes payable being made on average 45 days or more after the due date;(2) A tax lien is filed against the CCRC;(3) Fifty percent of accounts receivable, except Medicare or Medicaid, average more than 45 days; and(4) Days-cash-on-hand drops below 100 days.(h) All such escrow accounts shall comply with the rules for entrance fee escrow accounts as set forth under Ins 1807.In the course of establishing an escrow account, the CCRC shall advise the commissioner as to the name, address, telephone number and principal business activities of the escrow agent. The CCRC shall notify the commissioner of any subsequent change in escrow agent by providing the name, address, telephone number and principal business activities of the new escrow agent within 5 business days.N.H. Admin. Code § Ins 1805.01
#7014, eff 7-1-99, EXPIRED: 7-1-07
New. #8991, eff 10-1-07
Amended by Volume XXXV Number 45, Filed November 12, 2015, Proposed by #10944, Effective 10/8/2015, Expires 10/8/2025.