31-7-3.4. Liability insurance or self-insurance trust requirement for nursing and intermediate care homes.

As used in this Code section, the term “nursing home claim” means a claim alleging direct or vicarious liability for the personal injury or death of one or more residents of a nursing home or intermediate care home or a violation of residents’ rights at such home under Article 5 of Chapter 8 of this title.#

1. (1)

   As a condition precedent to obtaining or maintaining a permit under this article to operate a nursing home or intermediate care home, a licensee shall carry or be covered by liability insurance coverages or establish or have established for its benefit a self-insurance trust for a nursing home claim.#

2. (2)

   If a licensee fails to carry or be covered by liability insurance coverages or establish or have established for its benefit a self-insurance trust for a nursing home claim, the department shall provide notice to such licensee of its noncompliance and allow such licensee 60 days in which to comply. A licensee’s failure to maintain such coverage or establish such trust shall result in the department:#

   1. (A)

      Revoking such licensee’s permit issued pursuant to this article to operate the nursing home or intermediate care home;#

   2. (B)

      Denying any application to renew such permit; and#

   3. (C)

      Denying any application for a change of ownership of the nursing home or intermediate care home.#