Page 2261

(1) imposing the penalty merely causes the applicant or recipient inconvenience or restricts the applicant’s or recipient’s lifestyle; or

(2) the applicant or recipient transferred the asset without due consideration of the cost of medical care, food, clothing, or shelter that the applicant, recipient, or community spouse could reasonably expect to incur. (e) In this section, “undue hardship” means that imposition of the transfer-of-asset penalty would deprive the applicant, recipient, or community spouse of

(1) medical care to the degree that the individual’s life or health would be endangered; or

(2) food, clothing, shelter, or other basic necessities. (Eff. 7/20/2007, Register 183) Statutory Authority: Authority: AS 47.05.010 AS 47.07.020 AS 47.07.040 7 AAC 100.519. Definitions. In 7 AAC 100.500 — 7 AAC 100.519, unless the context requires otherwise,

(1) “annuity” means an actuarially sound contract in which an individual pays an entity a lump sum of money in return for the right to receive fixed, equal, periodic payments, either for life or for a term of years;

(2) “asset” means all income and resources under 7 AAC 100.400 of the individual and of the individual’s spouse, including

(A) income or resources to which the individual is entitled but does not receive based on the action of the individual or person acting on the individual’s behalf to avoid receipt of the asset; and

(B) money used to purchase a promissory note, loan, or mortgage;

(3) “community spouse income allowance” means the amount of income a community spouse is permitted to retain under 42 U.S.C. 1396r-5(d)(3);

(4) “community spouse resource allowance” means the maximum amount of resources a community spouse is permitted to retain under 42 U.S.C. 1396r-5(f)(2);