Iowa Administrative Code › Agency 191 - Insurance Division › Property and Casualty Insurance › Chapter 24 - Iowa Retirement Facilities › Rule 191-24.3 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
As used in the Act and this chapter, unless the context
				  otherwise requires:
"Act"
means Iowa Code chapter 523D, the Iowa
				  retirement facilities Act.
"Actuarialforecast"
means an analysis which
				  is performed by a qualified actuary or an individual who has demonstrated to
				  the satisfaction of the insurance division the necessary experience and
				  educational background. Such analysis shall be in accordance with generally
				  accepted actuarial principles and practices (GAAP) and shall include a
				  statement of actuarial opinion, an actuarial balance sheet, a cash flow
				  projection, and a statement of applicable actuarial methodology, formulas, and
				  assumptions.
"Certifiedfinancial statements"
means
				  financial statements audited and certified by an independent certified public
				  accountant in accordance with generally accepted auditing standards.
"Certifiedpublic accountant"
means a person
				  who has received from the Iowa accounting examining board a certificate as a
				  certified public accountant who is in good standing and who is currently
				  registered under Iowa Code section 542C.20 or holding certified public
				  accountant certificates issued under the laws of another state.
"Commissioner"
means the commissioner of
				  insurance for the state of Iowa.
"Financial institution"
means a state or
				  federally insured bank, savings bank, savings and loan association, credit
				  union, trust department thereof, or a trust company authorized to do business
				  in the state of Iowa.
"Person"
means an individual, corporation,
				  trust, partnership or association, or any other legal entity.
"Qualified actuary"
means an individual who
				  is a member of the American Academy of Actuaries.
"Statement of financial feasibility"
means a
				  financial forecast, as defined by the American Institute of Certified Public
				  Accountants (AICPA), of the revenues, expenses, working capital needs, and
				  other financial requirements for the new or expanded facility or an alternative
				  financial study in a form acceptable to the insurance division. The forecast
				  period should include the development or expansion period and extend for five
				  fiscal years from the date of initial occupancy. Unless waived by the
				  commissioner, the statement of financial feasibility shall include a cash flow
				  forecast with underlying assumptions and be presented in accordance with AICPA
				  guidelines. The financial analysis shall be prepared by either a qualified
				  actuary, a certified public accountant, or an individual who has demonstrated
				  to the satisfaction of the insurance division the necessary experience and
				  educational backgroimd.
"Statement of the market feasibility"
means
				  an analysis of the market conditions which (1) identifies and evaluates the
				  potential market, including a demographic and economic profile of the
				  population in the facility's market area; (2) identifies the existing or
				  proposed facilities or similar businesses offering similar services in the
				  potential market area, including, if available, the occupancy rate for existing
				  facilities for the last three years; and (3) identifies the name and address of
				  the person who prepared the feasibility study and the experience of the person
				  in preparing similar studies or otherwise consulting in the field of continuing
				  care or related health care fields.