New York Nursing Facility - Resident's Personal Funds Trust Fund Bond
What is a New York Nursing Facility - Resident's Personal Funds Trust Fund Bond?
Licensed operators or owners of nursing facilities within the State of New York are required to submit this bond to the New York State Department of Health.
Under Federal Statute 42 U.S.C.A. Sub-Section 1396r (c) (6) and 10 NY CRR Section 415.26 (h) (s) (v) requires this bond to ensure that the personal funds of residents deposited and entrusted to the operators and owners of nursing facilities will be taken care of.
The bonded responsibilities of operators and owners of nursing facilities include the following:
- Hold separately and in trust, all residents’ funds deposited with the nursing home or nursing facility
- Administer said funds on behalf of the residents as mandated by 42 U.S.C.A Sub-Section 1396r (c) (6) and 10 NY CRR Section 415.26 (h) (s) (v)
- Render true and complete accounts to the residents, the depositors, and the Department of Health acting through the Bureau of Long Term Care
- Return the full balance to the resident or other responsible party representing such resident upon the termination of said deposit
How much does a New York Nursing Facility - Resident's Personal Funds Trust Fund Bond cost?
The bond premium varies per bond applicant (owner or operator of the nursing facility). This will be based on the bond applicant’s credit score and the bond amount.
The bond amount will be determined by the New York Department of Health.
Bond premium ranges from 1.5% to 8% of the bond amount.
Get your FREE SURETY BOND QUOTE HERE as soon as you have determined your bond amount!
How can I get a New York Nursing Facility - Resident's Personal Funds Trust Fund Bond?
You can apply for a Resident's Personal Funds Trust Fund Bond HERE!
Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete before submitting them.
You will be asked to sign an indemnity agreement. Once signed, the bond will be issued and sent to you.
How does a New York Nursing Facility - Resident's Personal Funds Trust Fund Bond work?
A surety bond is a three-party agreement.
Principal – owner or operator of nursing facility
Obligee – New York State Department of Health
Surety – Surety bond provider
The Obligee can recover the amount required to compensate the resident of the nursing facility if the nursing facility violates any of the bonded obligations. The Surety will assume the responsibility. The Surety will first check if the claim is valid through an investigation. If it is, the Obligee will be paid in full. The Principal is obligated to indemnify the Surety after.
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