The Code of Federal Regulations (Section 483.10 (c)(7) obligates operators of long-term care facilities to safeguard residents’ assets, but the specific mechanisms through which that is done are up to the state.
Nearly all states mandate a surety bond, though some states call them Nursing Facility Resident Trust Fund bonds while others call them Skilled Care Facility bonds or something else. Purchasing one of these bonds is a mandatory step in the process of obtaining or renewing a facility license.
The required bond amount typically is $50,000. This is also known as the bond’s “penal sum,” which is the maximum amount that will be paid out on a single claim.
