Iowa Administrative Code › Agency 191 - Insurance Division › Regulated Industries › Chapter 102 - Iowa Retirement Facilities › Rule 191-102.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions of terms found in Iowa Code chapter 523D and this
				chapter.
The definitions in Iowa Code chapter 523D are incorporated by
				this reference. In addition, the following definition shall apply to this
				chapter and shall provide clarification and additional context to Iowa Code
				chapter 523D.
"Certified financial statements, "
as used
				  in this chapter and in Iowa Code section
				  523D3(1).
"i, "
means financial statements audited and certified by a
				  certified public accountant in accordance with generally accepted auditing
				  standards.
(2)
Definitions of terms used in Iowa Code chapter 523D.
The
				following terms, which are used in Iowa Code chapter 523D, are defined here to
				provide clarification and additional context.
"Actuarial forecast,"
as used in Iowa Code
				  section
				  523D5(1).
"f"
means an analysis which is performed by a qualified
				  actuary or an individual who has demonstrated to the satisfaction of the
				  commissioner the necessary experience and educational background. Such analysis
				  shall be in accordance with generally accepted actuarial principles and
				  practices 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. "Qualified actuary" means an individual
				  who is a member of the American Academy of Actuaries.
"Financial institution, "
as used in Iowa
				  Code section
				  523D5(4).,
				  means: a state or federally insured bank, savings bank, savings and loan
				  association, or credit union; or a trust company authorized to do business in
				  the state of Iowa.
"Statement of financial feasibility, "
as
				  used in Iowa Code section
				  523D5(1).
"d, "
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 commissioner the
				  necessary experience and educational background. "Qualified actuary" means an
				  individual who is a member of the American Academy of Actuaries. "Certified
				  public accountant" means a person who is licensed as a certified public
				  accountant under Iowa Code chapter 542 or under the laws of another
				  state.
"Statement of the market feasibility"
as
				  used in Iowa Code section 523D. 5(1)
"e, "
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.