State Regulations

To view a summarized table of state regulations, click here.

Alabama

In Alabama, gift annuities are regulated by the state's Securities Commission office. Relevant statutes include Alabama Code Sec. 8-6-10, Administrative Code Chapter 830-X-6-.10 and 7555 Blue Sky Law Reports 4-93. The charity must apply for exemption specifying the terms of the offer prior to issuing gift annuities and pay a filing fee of $50 per agent. State Form U-4 is the required form to register an agent. The charity also must submit a Form U-2, which appoints the Secretary of State to accept service of process for the charity. An annual renewal fee also is required. Donors must sign a detailed disclosure statement that indicates relevant risks associated with charitable gift annuities, tax consequences, the financial information of the organization (including the assets backing the annuity payments) and any present pending or threatened material legal proceedings. The disclosure statement also must state that the annuity is not assignable and that solely the charity and not the state backs it. The charity is required to maintain a reserve account. State disclosure language is required in the gift annuity contract.

State Contact Information:

Bene Kyles
Licensing and Registration
770 Washington Ave., Suite 570
Montgomery, AL 36130-4700
(334) 242-2372 or (334) 242-2984
(800) 222-1253
bene.kyles@asc.alabama.gov

Alaska

Gift annuities are regulated under the Alaska Code Sec. 21.03.021. The issuing charity must have been in continuous operation for three years and hold $300,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the gift annuity agreement, at the time it enters into a gift annuity contract. Gift annuity contracts require specific disclosure language in bold type, contained in a separate paragraph with print noticeably larger than generally used in the agreement. The Alaska Insurance Division must be notified within 90 days of the charity's first qualified gift annuity contract. The notice must be signed by an officer or director of the charitable organization, include the name and address of the organization, certify that the organization is a charitable organization under Sec. 170(c) or Sec. 501(c)(3) and that the charitable gift annuities issued by the organization are qualified charitable gift annuities under IRC Sec. 501(m)(5) or Sec. 514(c)(5). Failure to comply may result in a civil penalty not to exceed $1000 for each annuity issued by the charitable organization.

State Contact Information:

Janice Stamper
Department of Community & Economic Development
Division of Insurance
550 West 7th Avenue, Suite 1560
Anchorage, AK 99501-3567
(907) 269-7905
janice_stamper@commerce.state.ak.us

Arizona

Arizona Revised Statutes Secs. 20-103 and 20-119 govern gift annuities in Arizona. Under the laws, on the day the charity enters into a gift annuity contract, it must have at least $300,000 in unrestricted cash, cash equivalents, or publicly traded securities, exclusive of those assets funding the charitable gift annuity. The charity must have been in continuous operation for at least three years or be a successor or affiliate of a charitable organization that has been in continuous operation for at least three years. An annual audit of the charity's operations conducted by an independent certified public accountant must have been performed for the prior two fiscal years. Before the contract is signed or the property is transferred for the gift annuity, the charity must provide the following disclosure:

1. the name and address of the charitable organization;


2. a description of the charitable organization offering the gift annuity that includes the state under which the charity is organized or incorporated and the date of such organization or incorporation plus a statement of its current operations;


3. a statement that the charity will make available to the donor upon request additional financial information, including its most current audited and interim financial statements (this requirement must be in at least 10 point, bold-face type);


4. a statement that the gift annuity is not insurance or backed by the state guaranty fund; and


5. a statement that the State of Arizona has not approved or disapproved of the gift annuity being offered and that Arizona has not determined whether any of the information provided to the donor is truthful or complete.

If the above requirements are not met, the donor has the right to bring an action in any court that has jurisdiction to recover the amount given for the gift annuity with interest, plus court costs and reasonable attorney fees minus any amounts received by the annuitant. The donor must bring such lawsuit within two years of the date the donor discovers or reasonably should have discovered that the charitable gift annuity transaction did not comply with the statute. (This is why it is important for the charity to ensure that the donor signs the contract and has a copy of it.) The charity is restricted from directly or indirectly paying a commission, fee, or other form of compensation to anyone that is contingent on the donation or amount of the gift annuity. This does not include the charity paying regular compensation to its employees. For a sample disclosure statement see the link below.

Sample Disclosure Letter

State Contact Information:

Arizona Department of Insurance
Life and Health Division
2910 N. 44th Street, Suite 210
Phoenix, AZ 85018-7256
(602) 364-4457
(800) 325-2548

Arkansas

The Insurance Department regulates gift annuities in Arkansas. Gift annuity provisions can be found in Arkansas Code Sec. 23-63-201(d) and Rule 90 Charitable Annuity Requirements and Reporting. Arkansas requires charities to obtain a permit before issuing charitable gift annuities. To obtain a permit the charity must have been in continuous operation for at least five years. The charity also must file a gift annuity payout rate schedule with the Insurance Department or state that it will follow the ACGA rates. A segregated reserve of all gift annuity funds not properly reinsured is required. The charity must maintain as minimum assets the greater of $50,000 or the sum of its reserves on all outstanding gift annuity agreements, other liabilities and a surplus of 10%. Although Arkansas now allows charities to invest gift annuity reserves in accordance with the Arkansas prudent investor standard as set forth in Arkansas Code Secs. 24-2-610 through 24-2-619, the charity may have to submit additional information with its annual report, as discussed below. Arkansas requires a board resolution regarding the creation of the segregated reserve account and adoption of the investment restrictions. With permission of the Insurance Department, the charity may maintain a reserve for Arkansas residents only. Charities are required to file an annual report prepared by a CPA including financial statements of its operations and accounts and a schedule of outstanding annuities with applicable reserves. If a charity has chosen to follow the prudent investor standard, it must also include: 1) a description of its investment philosophy for charitable gift annuities and how the investments of the company are designed to meet future charitable gift annuity obligations; 2) a report from the organization identifying the members of the investment committee charged with making investment decisions regarding charitable gift annuity assets including a description of each committee member's investment expertise; and 3) a certification of the board of directors of the corporation or association that attests that its investments and investment transactions match the organization's philosophy and meet the standards of the prudent investor rule stated in Sec. 24-2-610 through 24-2-619. Charities investing under the state law where they are domiciled (other than Arkansas) must provide a copy of the state law governing their investments. Annual statements are due within 90 days of the end of the charity's fiscal year. No specific form is provided, but charities are permitted to use forms provided to other permit states.

State Contact Information:

Angela Davis
Mgmt. Project Analyst II
Arkansas Insurance Department
1200 West Third Street
Little Rock, AR 72201-1904
(501) 683-0231
angela.davis@arkansas.gov

California

Gift annuities are regulated under Ins. Code Secs. 11520-11524. The charity must apply for a permit from the Department of Insurance to issue gift annuities in this state. The charity must have been in continuous operation for 10 years. A segregated reserve account is required for California annuitants not properly reinsured. It is permissible for a charity to invest up to the lesser of 50% of its gift annuity reserve or the charity's net worth (assets over liabilities and reserves) in securities. The securities, however, must be listed and traded on the New York Stock Exchange, the American Stock Exchange, regional stock exchanges, the National Market System of the Nasdaq Stock Market or successors to such exchanges or markets having the same qualifications. The law specifically prohibits investment in options or commodity exchanges. If a charity wishes to invest in one of the latter mentioned assets, it first must seek the permission of the California Insurance Department. As of September 22, 2005, charities are no longer prohibited from investing in mutual funds. As of January 1, 2006, California no longer requires a calculation of the reasonable commensurate value (RCV) in the gift annuity document. However, the reserve requirement is still calculated using the Annuity 2000 mortality table with a 4.5% discount rate. California requires the charity to have a board resolution for the issuance of gift annuities, the creation of the required segregated reserve trust account and adoption of accompanying investment restrictions. Gift annuity contracts require inclusion of the value of the property, the annual payout amount, the manner and frequency of annuity payments and the age (in years to the nearest birthday) of the annuitant. An annual statement must be submitted to the State Insurance Department along with an annual fee based on the number of gift annuities in force within 120 days of the charity's fiscal year end and an analysis fee of $290. In addition, quarterly reports must be filed not later than 30 days after each calendar quarter.

State Contact Information:

For information regarding applications:
Carol A. Harmon
Sr. Staff Counsel
State of California
Insurance Department
45 Fremont Street, 24th Floor
San Francisco, CA 94105-2204
(415) 538-4420
(800) 967-9331
harmonc@insurance.ca.gov

Colorado

Colorado Revised Statutes Secs. 10-1-102(4) and 10-3-903(2)(i) provide that the issuance of a charitable gift annuity does not constitute transacting insurance business within Colorado so long as the gift annuity meets the requirements of Sec. 501(m)(5) and contains on its face required state disclosure language. The statute also requires the charity to have been in continuous operation for three years, be qualified to receive contributions described in Sec. 170(c), and if required by Sec. 170(c), to also have receipt of its exempt notification status from the IRS.

Connecticut

Connecticut General Statutes Secs. 38a-1030 through 38a-1034 permit charities to issue gift annuities provided that the charity, on the date of the agreement, has a minimum of $300,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement and has been in continuous operation for at least three years. State disclosure language that is in a separate paragraph and in a print size no smaller than that employed in the annuity agreement is required in the gift annuity contract. The charity must provide written notification to the Insurance Commissioner by the latter of January 1, 2000 or the date upon which it enters into its first gift annuity agreement. Such notice shall be signed by an officer or director of the organization, identify the organization, certify that the organization is a charitable organization and certify that the annuities issued by the organization are qualified charitable gift annuities.

State Contact Information:
Nancy Monahan
Legal Department
Connecticut Insurance Department
P.O. Box 816
Hartford, CT 06142-0816
(860) 297-3804
(800) 203-3447

Delaware

Delaware Insurance Code Sec. 2902 states that an "'annuity' is a contract, issued by a person which is not classified by the Internal Revenue Service as exempt from taxation under Sec. 501(c)(3)." The Code does not specifically exclude regulation of charitable gift annuities; however, it does provide that charitable gift annuities are not deemed to be "annuities" subject to insurance regulation.

District of Columbia

Applicable law does not specifically address charitable gift annuities.

Florida

Issuing charitable gift annuities in Florida requires submitting information to several state entities: the Florida Insurance Department and the Florida Department of Agriculture & Consumer Services, Division of Consumer Services. The charity must provide notice to the Florida Insurance Department if it plans to issue gift annuities under Florida Statutes Sec. 627.481. Sec. 627.481 permits a charity to issue gift annuities provided that the charity has been in continuous operation for at least five years and provides notification to the Florida Insurance Department. In addition, Florida Statutes Sec. 496.405 requires a charitable organization which intends to solicit contributions in Florida to file an initial registration statement with the Florida Department of Agriculture & Consumer Services, Division of Consumer Services. The registration fee is on a sliding scale depending on contributions the charity received for their past fiscal year.

Pursuant to Sec. 627.481, the charity must notify the Insurance Department in writing by the date on which the charity enters into the first gift annuity agreement. The notice must be signed by two or more of the charity's officers or directors, identify the organization and certify that the organization meets the requirements of Sec. 627.481. Sec. 627.481 also requires a segregated reserve account for all gift annuities not properly reinsured, with investment restrictions imposed on the reserve account. The segregated reserve account must maintain admitted assets at least equal to the sum of the reserves on its outstanding annuity agreements and a surplus of 10%. The reserve account cannot be invested in more than 50% equities or equity mutual funds. The charity must certify that it will receive at least one-half of the amount used to fund a gift annuity. (The ACGA rates are calculated to return 50%; therefore, if a charity is using these rates it will satisfy the Florida requirement.) If a charity is not incorporated in the State of Florida, it must register as a foreign corporation or trust. Florida provides the following forms: "Notification to the Office of Insurance Regulation as a Qualified Issuer of Donor Annuity Agreements Pursuant to Sec. 627.481, Florida Statutes" and "Sworn Statements in Lieu of Annual Statements for Issuers of Donor Annuity Agreements."

Annual statements must be submitted to both state entities. An annual statement must be submitted to the Insurance Department certifying compliance with reserve requirements by 60 days after the charities fiscal year end. In addition, the charity must renew annually with the Division of Consumer Services by March 31. Failure to do so will result in a $25 fee for each month or part of a month the renewal is late.

State required disclosure language must be in all gift annuity contracts. However, Florida institutions of higher learning have the following special language to include in their gift annuity contracts: "This agreement is the entire contract between the parties, with rights and responsibilities of each party to the other as set forth herein. The donor or annuitant shall not have recourse against any assets of the state other than any funds or assets donated by, or funds derived from any assets donated by, the donor as set forth herein."

State Contact Information:

Florida Department of Financial Services
Bureau of Specialty Insurers
200 E. Gaines Street
Tallahassee, FL 32399-0300
(850) 413-3144
(800) 342-2762


Initial Notification Form (Sec. 627.481)
Initial Notification Statement.

Register as Domestic or Foreign Corporation in Florida
Annual Notification Form (Sec. 627.481)

Georgia

Georgia Statutes Secs. 33-58-1 through 33-58-6 permits a charity to issue gift annuities provided that the charity has been in continuous operation for at least three years and has at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement. The charity must provide written notice to the Georgia Insurance Department concurrent with issuance of its first gift annuity. The notice shall be signed by an officer or director of the organization, identify the organization, certify that the organization is a charitable organization and that the gift annuities issued by the organization are qualified charitable gift annuities. State disclosure language is required in the gift annuity contract and must be in a separate paragraph in print size no smaller than that employed in the annuity agreement generally.

State Contact Information:

Brenda Powell
Financial Analyst
Regulatory Services Division
Georgia Insurance Department
2 Martin Luther King, Jr. Drive, Suite 604
West Tower
Atlanta, GA 30334-9000
(404) 651-6824 direct
(404) 656-2064

Hawaii

Gift annuities are regulated under Hawaii Statutes Sec. 431:1-204. Charities must receive a permit to issue gift annuities in this state. To receive a permit, the charity must have been granted tax-exempt status by the IRS under Sec. 501(c)(3) and have been in continuous operation as a program or fundraiser in Hawaii for at least 10 years. The charity also must have at least $200,000 in cash, cash equivalents or publicly traded securities exclusive of the assets funding any annuity in Hawaii. The charity must maintain a segregated reserve account calculated in accordance with accepted actuarial standards plus a surplus of 10% or $100,000, whichever is higher. The charity must file an annual report with the Department of the Attorney General by March 15 each year. Disclosure language in the document is required.

State Contact Information:

Paul Yuen
Regulation Analyst
State of Hawaii Insurance Division
Department of Commerce and Consumer Affairs
P.O. Box 3614
Honolulu, HI 96811-3614
(808) 586-2790
insurance@dcca.hawaii.gov

Annual Statement Form

Idaho

Idaho Insurance Code Sec. 41-114 provides that organizations exempt under Sec. 501(c)(3) are exempt from standard insurance regulation, but only for the issuance of qualified charitable gift annuities. Idaho Insurance Code Sec. 41-120 provides the conditions under which an annuity is considered a qualified gift annuity not subject to insurance regulation. A qualified charitable gift annuity must be issued by an organization that has been in continuous operation for at least three years and has $100,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement at the time it enters into a gift annuity contract. The charity must notify the state insurance department on the date it enters into its first qualified charitable gift annuity agreement. Notice must be signed by the officer or director of the charitable organization, identify the charitable organization and certify that the organization is a charitable organization and that the annuities offered are charitable gift annuities as defined in Sec. 41-120. State required disclosure language is necessary in all gift annuity contracts.

State Contact Information:

Carol Anderson
Idaho Department of Insurance
700 West State Street
P.O. Box 83720
Boise, ID 83720-0043
(208) 334-4309
(800) 721-3272
carol.anderson@doi.idaho.gov

Illinois

Gift annuities are regulated in Illinois under Illinois Compiled Statutes 215ILCS 5/121-2.10. This section provides for conditional exemption so long as the charity has been in continuous operation for 20 years and has an unrestricted fund balance of at least two million dollars. If a charity does not meet the above requirements, it will be exempt so long as it reinsures its gift annuities with an approved commercial insurance company. To fall under the conditional exemption, the gift annuity must meet the requirements of Sec. 501(m)(5) and the issuing charity must be an organization described in Sec. 170(c).

Indiana

Indiana Code Sec. 27-1-12.4-2 states that gift annuities are not subject to regulation by the Insurance Department.

Iowa

Iowa Code Secs. 508F.1 through 508F.8 allow charities in continuous operation for at least three years with the lesser of $300,000 of unrestricted cash, cash equivalents or publicly traded securities (exclusive of the assets funding the gift annuity agreement) or five times the total face value of outstanding gift annuity agreements to issue gift annuities. Notification to the Insurance Commissioner must be provided no later than the date of issuance of the charity's first gift annuity contract. The notice must be signed by an officer or director of the charitable organization and identify the name and address of the charitable organization. The notice must include a copy of the determination letter issued by the IRS and certify that the organization is a bona fide charitable organization and the annuities issued by the organization are qualified charitable gift annuities. State disclosure language must be included in the gift annuity document. The required language must be in a separate paragraph in type no smaller that that generally used in the annuity agreement.

State Contact Information:

Iowa Insurance Division
Attn: Rhonda Hagen
330 Maple Street
Des Moines, IA 50319-0065
(515) 281-7757 Producer Licensing

Kansas

Kansas Statute Sec. 17-1261(h) provides exemption from securities regulation in Kansas for a non-profit organization operated exclusively for religious, educational, benevolent, charitable, fraternal, social, athletic, fire protection or reformatory purposes, or as a chamber of commerce or trade or professional association. As of July 1, 2005, Kansas law provides a self-executing exemption for issuers of securities that are excluded from the definition of "Investment Company" under § 3(c)(10)(B) of the Federal Investment Company Act of 1940. The exemption is provided for Kansas Uniform Securities Act § 6(7).

State Contact Information:

Steve Wassom
Director of Finance Administration
Office of the Kansas Securities Commissioner
618 S. Kansas Avenue, 2nd Floor
Topeka, KS 66603-3804
(785) 296-3307
(800) 432-2484
steve.wassom@securities.state.ks.us

Special Order Regarding Not For Profit Issuers of Securities

Kentucky

Under Kentucky Revised Statutes Sec. 304.1-120, qualified organizations are exempt from regulation. A qualified organization is one that is exempt from taxation under Sec. 501(c)(3) as a charitable organization if it files a federal Form 990 with the Division of Consumer Protection in the Office of the Attorney General. Sec. 304.1-120 also includes religious organizations exempt from taxation under Sec. 501(c)(3). Further included are publicly owned or nonprofit-privately endowed education institutions approved or licensed by the Kentucky Board of Education, the Southern Association of Colleges and Schools, or an equivalent public authority of the jurisdiction where the institution is located. No notification is required.

Louisiana

Louisiana Revised Statutes Secs. 22:173(D) and 22:173.1(2) and (3) provide that organizations exempt from federal income tax under Sec. 501(c)(3) are exempt from Louisiana Insurance Code Regulations for the issuance of charitable gift annuities. No notification is required.

Maine

Maine Insurance Code Sec. 3 provides that charitable gift annuities described in Sec. 703-A are not insurance. Sec. 703-A describes a gift annuity as a written contract with a qualified organization in which the organization receives money or property and agrees to provide an annuity payment to one or two individuals. A qualified organization is one that is established for a non-profit purpose and is either a Maine corporation or files with Maine as a foreign corporation, as described under IRC Sec. 501(c)(3), and has been in continuous operation for at least five years. To apply as a foreign corporation, the organization must provide the name of the corporation, the jurisdiction of the corporation, the date of incorporation and a statement of purpose or purposes which it is authorized to pursue under the laws of its jurisdiction of incorporation. It also must provide a statement of the purpose or purposes for which it seeks authority to pursue in the State of Maine (if it does not ask authority to pursue all of the purposes authorized under the laws of its jurisdiction of incorporation). Further, the charity must provide the address of its registered or principal office in the jurisdiction of its incorporation or the principal office, wherever located, and the address of its proposed registered office in the State of Maine and the name of its proposed registered agent who is in the State of Maine.

Statutes relating to registering as a foreign corporation: Title 13-B Sec. 1202, Title 13-B Sec. 104, Title 13-B Sec. 106

Maryland

Maryland requires a permit to issue gift annuities under the Maryland Insurance Code Sec. 16-114. Permits are issued to educational, religious, hospital or community foundations. A community foundation is defined as "a nonprofit organization that is formed to receive contributions and distribute money to meet cultural, educational, charitable, environmental, civic, or other similar needs of a community and governed by a board of private citizens who reside in the community." Permit issuance requires the charity to have been in continuous operation for at least 10 years in Maryland and to have a board resolution approving the issuance of gift annuities. A community foundation may be granted a permit after five years of existence provided that it maintains 100% of admitted assets of contributions made to the community foundation. Even if an organization meets the 10 year requirement, it must maintain admitted assets at least equal to adequate reserves on its outstanding gift annuity agreements. This reserve requirement can be reduced for gift annuities that are reinsured by an authorized life insurer. The organization must have tax-exempt status as granted under Sec. 501(c)(3). Investment restrictions are placed on the required segregated reserve account. The charity must follow the prudent investor rule. State-specific disclosure language needs to be included in the gift annuity contracts. In addition, an annual form must be filed within 90 days of the charity's fiscal year end. A CPA must verify the adequacy of the reserve account, which is to be determined in accordance with the assumptions underlying the ACGA rates.

State Contact Information:

Howard Max
Associate Commissioner
Maryland Insurance Administration
Life and Health Section
525 St. Paul Place
Baltimore, MD 21202-2271
(410) 468-2205
(800) 492-6116
hmax@mdinsurance.state.md.us

Massachusetts

The General Laws of Massachusetts provide that organizations incorporated for any educational, charitable, benevolent or religious purpose shall not be deemed life insurance companies and shall not be subject to Chapter 175, Sec. 118 of the General Laws of Massachusetts.

Michigan

Michigan does not have a state law exempting charitable organizations issuing gift annuities from regulations. However, in an Attorney General Opinion (Opinion No. 6538), a gift annuity program proposed by the Michigan State University Foundation was deemed not to be subject to regulation by the Commissioner of Insurance, unless the issuance of annuity contracts became the Foundation's principal object and purpose.

Minnesota

Effective August 1, 2007, issuance of charitable gift annuities is exempt under Minnesota Securities Statute 80A.45, Section 201(7). Filing with the state is no longer required.

State Contact Information:

Diane Walters
Registration Division
Minnesota Department of Commerce
85 7th Place East, Suite 500
St. Paul, MN 55501
Phone: (651) 296-4973
Email: diane.walters@state.mn.us

Mississippi

Mississippi Code Sec. 79-11-653 addresses the issuance of charitable gift annuities. The statutes provide a conditional exemption from gift annuity regulation if the charity has been in continuous operation for at least three years and has $300,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement at the time it enters into a gift annuity contract. State disclosure language is required in gift annuity contracts. The language must be in a separate paragraph in print no smaller than that used in the gift annuity agreement. Notification must be provided to the Secretary of State in writing on the date on which the charity enters into its first qualified agreement. The notice shall be signed by an officer or director of the organization, identify the organization and certify that the organization is a charitable organization and the annuities issued by the organization are qualified charitable gift annuities.

State Contact Information:

Office of Secretary of State
Charities Enforcement and Regulation
P.O. Box 136
Jackson, MS 39205-0136
(601) 359-6366
(888) 236-6167

Missouri

Gift annuities are regulated in Missouri by the Insurance Department under Missouri Revised Statutes Secs. 352.500 through 352.520. These statutes provide the charity exemption from insurance regulation provided that it has been in continuous operation for at least three years and has $100,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement at the time it enters into a gift annuity contract. Further, the charity must be an organization described in Sec. 501(c)(3) or Sec. 170(c) and the charity must provide a copy of its IRS letter. Notice is required on the date on which the organization enters into its first qualified charitable gift annuity agreement. The notice must be signed by an officer or director of the organization, identify the organization and certify that it is a qualified organization and that the gift annuities are qualified gift annuities. State-specific disclosure language is required in gift annuity contracts.

State Contact Information:


Missouri Department of Insurance
P.O. Box 690
Jefferson City, MO 65102-0690
(573) 751-3518 Licensing
Cassie Grewing
(573) 751-3497

Montana

As of 2003, gift annuities are regulated in the State of Montana under Montana Code Annotated Secs. 33-20-701 through 33-20-705. Under the Code, charitable gift annuities are not deemed to be insurance provided the issuing charity has a minimum of $100,000 in unrestricted cash, cash equivalents, or publicly traded securities exclusive of the assets funding the annuity agreement or $300,000 of net worth. The charity also must have been in operation for at least three years. Lastly, the charity is required to maintain a separate reserve fund that holds at least 50% of active gift annuity contributions. If a charity is unable to meet the listed requirements, it may still issue gift annuities as long as it commercially reinsures them by a licensed insurance company qualified to do business in Montana. Notice to the Insurance Commissioner is required both 1) prior to the date the charity enters its first qualified charitable gift annuity agreement and 2) on March 1 of each year in which the charity issues qualified charitable gift annuities. Notice must be signed by an officer or director of the organization, identify the organization and certify that the organization is a charitable organization and that the annuities issued are qualified charitable gift annuities. There is state-specific disclosure language required for gift annuity contracts. The required language must be in a separate paragraph in print size no smaller than that used generally in the gift annuity agreement.

State Contact Information:

Cheryl Donovan
Montana Department of Insurance
840 Helena Avenue
Helena, MT 59601-3423
(406) 444-4517
(800) 332-6148
cdonovan@mt.gov

Notice of Issuance of Qualified Charitable Gift Annuities

Nebraska

Nebraska governs gift annuities under Nebraska Statutes Secs. 59-1801 through 59-1803. According to the statutes, issuing gift annuities is not deemed to be engaging in business as a trust company or insurance company. It also is not deemed to be a restraint of trade or commerce, engaging in an act in violation of the Viatical Settlement Act or engaging in an act in violation of the Uniform Deceptive Trade Practices Act. The issuing charity must be an organization described in Sec. 501(c)(3) or Sec. 170(c)(3). Further, the gift annuity must be in compliance with Sec. 501(m)(5) and Sec. 514(c)(5). The charity must have been in continuous operation for at least three years. No notification to the state is required.

Nevada

Nevada regulates gift annuities under Nevada Revised Statutes Secs. 688A.281 through 688A.285. Under these provisions, organizations described in Sec. 501(c)(3) and Sec. 170(c)(3) are not deemed to be engaging in the business of insurance for the issuance of charitable gift annuities. The charity, however, must have at least $300,000 worth of money, cash equivalents or publicly traded securities, exclusive of the amount transferred to it in return for the annuity. The charity also must have been in continuous operation for at least three years. State-specific disclosure language is required in the gift annuity contract in a separate paragraph in print size no smaller than that generally used in the agreement. Notice to the state is required within 90 days of issuance of the charity's first qualified gift annuity. A qualified gift annuity is one that follows the provisions of Sec. 501(m)(5) and Sec. 514(c)(5). The notice shall be signed by an officer or director of the organization, identify the organization and certify that the organization is a charitable organization and that the annuities are qualified charitable gift annuities.

Further, gift annuities for which any person is paid contingent upon the issuance of the annuities or based upon the value of the annuities (other than a payment for reinsurance to an insurer licensed to issue insurance in Nevada) do not qualify under these provisions.

State Contact Information:

Lou Roggensack
Life and Health Section
Division of Insurance
Nevada Department of Business and Industry
788 Fairwiew Drive, Suite 300
Carson City, NV 89701-5491
(775) 687-4270 ext. 245
(800) 992-0900
roggen@doi.state.nv.us

Status Requests:

Nancy Hoffman
Life and Health Section
Division of Insurance
Nevada Department of Business and Industry
788 Fairview Drive, Suite 300
Carson City, NV 89701-5491
(775) 687-4270 ext. 253
(800) 992-0900
lhadmin@doi.state.nv.us

New Hampshire

New Hampshire Revised Statutes, Title XXXVII, Chapter 403-E:2 state that issuing gift annuities, as described in Sec. 501(m)(5) and Sec. 514(c)(5) is not deemed to be engaging in the business of insurance, provided the charity is an organization described in Sec. 501(c)(3) or Sec. 170(c)(3). Further, the charity must have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement, and have been in continuous operation for at least three years. To be in compliance, the charity must follow the payout rates suggested by the ACGA and maintain 100% of the amounts given for gift annuities. Earnings on the amount given for a charitable gift annuity also must be retained until termination of the gift annuity contract. State law requires charities to follow the general standards of prudent investment. Notice is required on the date on which the charity enters into its first qualified gift annuity agreement. The notice shall be signed by an officer or director of the organization, identify the organization and certify that the organization is a charitable organization and that the annuities issued by the organization shall be limited to qualified charitable annuities, as defined in Chapter 403-E:1, V. Annual notification stating that the charity is issuing only qualified charitable gift annuities also is required.

State Contact Information:

Audrey Blodgett, Paralegal
Charitable Trusts Unit
Department of Justice
33 Capitol Street
Concord, NH 03301
(603) 271-3591
audrey.blodgett@doj.nh.gov

Notification Form is available by clicking here.

New Jersey

New Jersey Statutes Annotated Sec. 17B:17-13.1 require a permit to issue gift annuities in the State of New Jersey. In order to obtain a permit the charity must have been in active operation for at least 10 years. The charity also must demonstrate that it is a qualified charity under Sec. 501(c)(3) and be registered with the New Jersey Department of the Treasury as a domestic or foreign entity authorized to do business in New Jersey. A board resolution is required. The charity must submit the payout rates it will offer to donors. If the charity does not follow the ACGA recommended rates, it must have its own rates verified by an actuary to ensure the rates are in compliance with New Jersey Administrative Code Sec. 11:4-8.3(c). However, if the charity uses Crescendo software to calculate the reserve, an actuarial verification is no longer necessary. A segregated reserve is required equal to the sum of the required reserves plus the greater of 10% of the required reserves or $100,000. Investment restrictions were changed in 2004 so that the charity must invest the reserve account according to the New Jersey Prudent Investor Act, which does not allow real estate investments. The charity must file an annual report with the Insurance Department within 120 days of the end of the calendar year.

State Contact Information:

Adelaide Phelan
Life and Health Division
Department of Banking and Insurance
P.O. Box 325
Trenton, NJ 08610
(609) 292-5427 ext. 50328
Adelaide.Phelan@dobi.state.nj.us

New Jersey State Charitable Gift Annuity Page

New Mexico

New Mexico Statutes Annotated Sec. 59A-1-16.1 provides that the issuance of gift annuities does not constitute engaging in the business of insurance so long as the organization qualifies under Sec. 501(c)(3) or Sec. 170(c). Further, the charity must have an unrestricted fund balance of $300,000 or unencumbered assets in the gift annuity fund of not less than $300,000 and have been in continuous operation for at least three years. There is state-specific disclosure language to include in the gift annuity document. The charity also must file written notice with the insurance department on entering into its first qualified gift annuity agreement. The notice shall be signed by an officer or director of the charitable organization, identify the charitable organization and certify that it is a charitable organization and the annuities issued by the organization are qualified charitable gift annuities.

State Contact Information:

Diana Bonal
Administrative Operations Manager
New Mexico Public Regulation Commission / Insurance Division
Life and Health
Rate and Form Filing Section
P.O. Box 1269
Santa Fe, NM 87504-1269
(505) 827-4561
(800) 947-4722
Diana.Bonal@state.nm.us

New York

Gift annuities are regulated under New York Insurance Law Sec. 1110. A charity is required to apply for a permit to issue gift annuities in New York before issuing its first gift annuity. A segregated reserve account is required with a board resolution allowing for the creation of such account and agreeing to abide by the investment restrictions. The charity must maintain the reserve account in accordance with Insurance Law Sec. 4217 plus a surplus of 10%. However, the New York Insurance Department will not issue a permit until a charity's reserve account totals $500,000. Charities with reserves less than $500,000 are exempt from the permit requirement. If the charity has less than $500,000 of reserves calculated according to New York state law, it must abide by all the other rules pertaining to gift annuities including its maintenance of a segregated reserve plus a 25% surplus calculated in accordance with Sec. 4217 of the Insurance Law. Real property may not be held as an asset in the reserve account. To obtain a permit, the charity also must have been in continuous operation for at least 10 years. The charity is required to submit sample gift annuity contracts and a payout rate schedule. The payout rates must be set so that the charity will receive at least one-half of the original gift amount. Assets must be invested in accordance with the prudent investor standard, which is defined in Estates, Powers and Trusts Law Sec. 11-2.3. An annual report must be filed with the Insurance Department by March 1 each year. Effective July 20, 2004, charities issuing gift annuities in New York can accept real property as well as cash and other property. New York law prohibits issuing a gift annuity with a life estate (gift annuity for home). See Office of General Counsel Opinion issued May 9, 2005. New York prohibits the issuance of college annuities annuities according to information published by the Insurance Department. See Product Outline, Charitable Gift Annuities.

State Contact Information:

New York State Insurance Department
Life Bureau
25 Beaver Street, 3rd Floor
New York, NY 10004-2319
(212) 480-4659
life@ins.state.ny.us

Annual filing statement - one copy should be sent to the address above and one copy should be sent to: Office of General Counsel, New York State Insurance Department, One Commerce Plaza, Albany, NY 12257-0001, (518) 474-6623
Application for charitable gift annuity permit

North Carolina

A charitable organization described in Sec. 501(c)(3) or Sec. 170(c)(3) or an educational institution may issue gift annuities in North Carolina pursuant to North Carolina General Statutes Annotated Sec. 58-3-6(a). Such issuance of gift annuities is not deemed to be engaging in the business of insurance if the organization has a minimum of $100,000 in unrestricted cash, cash equivalents or publicly-traded securities, exclusive of the assets contributed by the donor in return for the annuity agreement, and has been in continuous operation for at least three years. State-specific disclosure language is required in gift annuity contracts. The charity is required to give written notice to the department of insurance within 90 days of issuing its first annuity agreement. The notice shall be signed by an officer or director of the organization or educational institution, identify the organization or institution, and certify that the organization or institution is a charitable organization or educational institution and that its annuities are issued in compliance with the applicable provisions of Sec. 58-3-6(a).

State Contact Information:

Theresa N. Shackelford
Supervisor
Life and Health Division
North Carolina Department of Insurance
1201 Mail Service Center
Raleigh NC 27699-1201
(919) 733-5060 ext. 351
(800) 546-5664
tshackel@ncdoi.net

Notification Form
CGA Description

North Dakota

A permit is required to issue gift annuities in this state according to North Dakota Century Code Sec. 26.1-34.1-01. To obtain a permit the organization must have tax-exempt status, file an application and pay a $100 filing fee. A segregated reserve fund that is adequate to meet all future annuity payments is required. Charities must file their annual financial statements as soon as they are available.

State Contact Information:

Janel Frenzel
Company Licensing Specialist
North Dakota Insurance Department
600 East Boulevard, Dept. 401
Bismarck, ND 58505-0320
(701) 328-3328
(800) 247-0560
jfrenzel@state.nd.us

Ohio

Ohio law does not specifically address charitable gift annuities. However in Transgenstein v. Board of Trustees of Wheaton College, 96 Ohio St. 3d 1525 (2002). The appellate court held that issuing charitable gift annuities is not deemed to be transacting the business of insurance. The court found that, "Charitable activities, though they may involve transactions, are not undertaken for profit, and are therefore not commerce. Not being commerce, they do not constitute 'transacting the business of life insurance in this state' per R.C. 3911.01, notwithstanding the fact that transfer of an annuity is transacted."

Oklahoma

Oklahoma regulates gift annuities under the "Oklahoma Charitable Gift Annuity Act" as provided in Oklahoma Statutes Secs. 36-110, 36-4071 though 36-4082 and 71-401. Under these provisions, gift annuities are not deemed to be insurance or securities. Charitable organizations, however, must qualify for tax-exempt status under Sec. 501(c)(3) or Sec. 170(c)(3). To qualify they must have a minimum of $100,000 in unrestricted assets that are exclusive of the assets comprising its qualified charitable gift annuities and they must have been in existence for at least three years. Also, the gift annuities must be in compliance with Sec. 514(c)(5) and Sec. 501(m)(5). The charity must provide the insurance department with notice on the date it enters into its first charitable gift annuity agreement. The notice shall show the name and principal address of the charitable organization, certify that the organization is an organization described by Sec. 501(c)(3) and Sec. 170(c)(3) and attach a copy of the organization's letter from the IRS declaring its exempt status. The organization also must certify that it has issued one or more qualified charitable gift annuity contracts as defined in this act. Further, it must certify that it has a minimum of $100,000 in unrestricted assets exclusive of the assets comprising the qualified charitable gift annuities issued by the charitable organization, that it has been in continuous operation for at least three years or is a successor or an affiliate of a charitable organization that has been in continuous operation for at least three years. Also attached with the certification must be its most recent annual audit prepared by an independent certified public accountant, accounting firm or individual holding a permit to practice public accounting in accordance with generally accepted accounting principals. State-specific disclosure language is required not only in the annuity contract, but also in any literature and applications. Such disclosure shall be in the same size type as the rest of the document. Copies of the charity's annuity audited financial statements are due within 90 days of receipt of the final audit report.

State Contact Information:

Rachel Nalliah
Financial Specialist
Oklahoma Insurance Department
P.O. Box 53408
Oklahoma City, OK 73152-3408
(405) 521-6648
(800) 522-0071
rachelnalliah@insurance.state.ok.us

Oregon

As of January 1, 2006, a charity can no longer issue annuities in Oregon unless it, on the date of the annuity agreement: 1) has a minimum of $300,000 in unrestricted cash, cash equivalents or publicly traded securities exclusive of the assets funding the gift annuity agreement, 2) has been in continuous operation for at least five years, and 3) maintains a separate and distinct trust fund as a reserve fund adequate to meet future annuity payments for all outstanding annuity agreements. Any charity holding a certificate of authority is required to relinquish the certificate to Oregon on January 1, 2006. However, charities that held a certificate of authority to issue gift annuities may continue to issue annuities even if they do not have the required $300,000 in net assets or five years of continuous operation. If the charity does not meet the above requirements or the exception, it cannot issue charitable gift annuities in the State of Oregon. Annual filings covering the fiscal year-end periods after January 1, 2006 will not be required. Gift annuity contracts must include state disclosure language in a separate paragraph and in a print size no smaller than that employed in the rest of the document.

State Contact Information:

Linda J. Rothenberger
Financial Regulation
Department of Consumer and Business Services
Oregon Insurance Division-4
P.O. Box 14480
Salem, OR 97309-0405
(503) 947-7227
linda.j.rothenberger@state.or.us

House Bill 2092

Pennsylvania

Gift annuities are regulated under the "Charitable Gift Annuity Exemption Act" which is found in the Pennsylvania Consolidated Statutes Annotated, Title 10, Chapter 9 Secs. 361 through 364. The Act provides that a charitable gift annuity as defined under Sec. 501(m)(5) is not subject to The Insurance Department Act of 1921. To be exempt, the gift annuity agreement must contain several provisions. The agreement must state that the fair market value of the property transferred is substantially in excess of the fair market value of the annuity and that the difference between those values constitutes a gift by the donor to the qualified charity for its charitable purpose; also, that the charitable gift annuity is not designed primarily as an investment but rather as a charitable gift and a statement indicating that the promise to pay the annuity is not insurance under the laws of Pennsylvania and not protected by a guaranty association. The contact person at the charity from which the donor can obtain a copy of the charity's status under Sec. 170(c)(3) and its financial statements must be included. The document must note the date the charity came into existence and state that the charity has been in existence for at least three years. Lastly, the document must state that the charity has unrestricted and unencumbered assets in the form of cash, cash equivalents or publicly traded securities of at least $100,000 plus one-half of the principal value of any annuities issued by the organization then in effect and how the charity qualifies as a charitable organization. There are several ways for a charity to show how it qualifies as a charitable organization. The charity can state that it is an educational institution, hospital, a charitable organization that files a registration statement with the Department of State under the Solicitation of Funds for Charitable Purposes Act, senior citizen center or nursing home, religious organization or any corporation established by an act of Congress that is required by Federal law to submit annual reports of its activities to Congress containing itemized accounts of all receipts and expenditures after being fully audited by the Department of Defense. For each of the above categories, there are further requirements listed in the statute. If you are using the Crescendo gift annuity contract (program 53) for Pennsylvania, it will select the registration with the Department of State under the Solicitation of Funds for Charitable Purpose Act. This requires the charity to file an annual statement and pay the appropriate fee. No other notice is required.

State Contact Information:

Bureau of Charitable Organizations
207 North Office Building
Harrisburg, PA 17120
(717) 783-1720
(800) 732-0999

Bureau of Consumer Services

Rhode Island

State law does not specifically address charitable gift annuities.

South Carolina

Under the Code of Laws of South Carolina Sec. 38-5-20, charities are not subject to the insurance laws of the state provided that the charity is a charitable, religious, benevolent or educational corporation not operating for profit and has been in continuous operation for at least five years. Also, the provision adds that no corporation operating for profit, including nursing homes or any other type of business, is permitted to issue charitable or gift annuities without the director's or his or her designee's approval. No notice is required for charities falling within these provisions.

South Dakota

South Dakota Codified Laws Sec. 58-1-16 provide that gift annuities are not subject to any of the insurance provisions, so long as the charity has been in operation for at least 10 years and has a minimum of $500,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement as of the date of the annuity agreement. The charity must either be domiciled in South Dakota and have its principal place of business in South Dakota or be qualified to do business in South Dakota as a foreign corporation. The charity must: (i) be exempt from taxation under Sec. 501(c)(3) and regularly file a copy of Federal Form 990 in the Office of the Attorney General; (ii) be exempt from taxation under Sec. 501(c)(3) as a religious organization; or (iii) be exempt as a publicly owned or non-profit, privately endowed educational institution approved, accredited or licensed by the state board of education, the North Central Association of Colleges and Schools, or an equivalent public authority of the jurisdiction where the institution is located. State-specific disclosure language is required in the gift annuity documents and any promotional literature. This language must be in at least 10-point bold type.

State Contact Information:

Division of Insurance
445 E. Capitol Avenue
Pierre, SD 57501-3185
(605) 773-3563

Tennessee

Charitable gift annuities are regulated under the Charitable Gift Annuity Exemption Act found in the Tennessee Code under Secs. 56-52-101 through 56-52-107. This Act provides that the issuance of gift annuities does not constitute engaging in the business of insurance so long as the charity is described in Sec. 501(c)(3) or Sec. 170(c)(3) and the gift annuities are in compliance with Sec. 501(m)(5). Also, the charity must have $1,000,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of assets funding the annuity agreements, and have been in continuous operation for at least three years. If the charitable organization is affiliated with the University of Tennessee or an institution of the state university and community college system, the unrestricted assets minimum is $300,000. The charitable organization shall provide written notice to the Commissioner of Commerce and Insurance on the date on which it enters into its first qualified charitable gift annuity agreement. The notice shall be signed by an officer or director of the organization, identify the organization and certify that it is a charitable organization and the annuities issued by it are qualified charitable gift annuities. A notice form is provided by the state. State-specific disclosure language is required in gift annuity documents.

State Contact Information:

Bob Ribe, Chief Analyst
Tennessee Department of Commerce and Insurance
Finance Affairs Section
500 James Robertson Parkway, 4th Floor
Nashville, TN 37243-1135
(615) 741-1633
bob.ribe@state.tn.us

Notification Form is available by clicking here.

Texas

Gift annuities are governed under Texas Insurance Code Secs. 102.001 through 102.152. Under these provisions, the issuance of gift annuities as described in Sec. 501(m)(5) is not deemed to be engaging in the business of insurance so long as the charitable organization is described in Sec. 501(c)(3) or Sec. 170(c)(3), has been in continuous operation for at least three years and has a minimum of $100,000 in unrestricted cash, cash equivalents, or publicly traded securities exclusive of the assets funding the annuity agreement. Any gift annuity issued before September 1, 1995 is deemed to be a qualified gift annuity. State-specific disclosure language must be included in all gift annuity agreements. Written notice to the insurance department's annuity division is required on the date on which the organization enters into its first qualified gift annuity agreement. The notice shall be signed by an officer or director of the organization, identify the organization and certify that the organization is a charitable organization and the annuities issued by the organization are qualified charitable gift annuities.

State Contact Information:

Shaun Craig
Insurance Specialist
Life/Health Division
Life, Annuity & Credit Section
Texas Department of Insurance
MC-106-1E
P.O. Box 149104
Austin, TX 78714-9104
(512) 322-3595
Email: Shaun.Craig@tdi.state.tx.us

Sample Notice Letter

Utah

Gift annuities are addressed in Utah Code Annotated Secs. 31A-1-301(80)(c), 31-A-1-301(85)(a)(i)(B) and 31A-22-1305. These provisions state that the issuance of gift annuities does not constitute the business of insurance nor is the charity deemed to be an issuer of insurance provided that the charity is a domestic corporation created under Title 16, Chapter 6a of the Utah Revised Nonprofit Corporation Act, or other applicable law, or a foreign corporation conducted without profit, which is engaged solely in bona fide charitable, religious, missionary, education, medical or philanthropic activities. No notification is required.

Vermont

A conditional exemption for charitable gift annuities is granted by Vermont Statutes Secs. 2517 and 2518, provided the charity is an organization described in Sec. 501(c)(3) or Sec. 170(c)(3), has been in continuous operation for at least three years and has $300,000 in unrestricted assets exclusive of the assets funding the gift annuity. Further, the gift annuity must be in compliance with Sec. 501(m)(5) and Sec. 514(c)(5). State-specific language is required in gift annuity contracts. No notification to the state is required.

State Contact Information:

Sandra Fraser
Licensing Supervisor
State of Vermont
Insurance Division
Department of Banking, Insurance, Securities & Health Care Administration
89 Main Street, Drawer 20
Montpelier, VT 05620-3101
(802) 828-4847
sfraser@bishca.state.vt.us

Virginia

Issuing charitable gift annuities is not deemed to be engaging in the business of insurance according to the Virginia Code Sec. 38.2-3113.2, provided that the charity is described in Sec. 501(c)(3) or Sec. 170(c)(3) as stipulated in Virginia Code Sec. 38.2-106.1. The charitable organization must have a minimum of $100,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets contributed by the donor in return for the annuity agreement on the date that the charity enters into the agreement. The organization also must have been in continuous operation for at least three years. State-specific language is required in all gift annuity agreements.

State Contact Information:

Virginia Bureau of Insurance
P.O. Box 1157
Richmond, VA 23218-1157
(804) 371-9878
(800) 552-7945
bureauofinsurance@scc.virginia.gov

Washington

Washington regulates gift annuities under the Revised Code of Washington Sec. 48.38. These provisions require the charity to apply for a permit to issue gift annuities in Washington. To obtain a permit, the charity must be organized and operated exclusively as, or for the purpose of aiding, an educational, religious, charitable or scientific institution which is organized as a nonprofit organization without profit to any person, firm, partnership, association, corporation or other entity. Further, the charity must possess a current tax-exempt status under the IRC. Charitable gift annuity contracts can be issued only for the benefit of such educational, religious, charitable or scientific institution. The charity must have been in operation for at least three years and maintain a minimum of $500,000 of unrestricted net assets. In applying for the permit, the charity must provide its name, location and organization date and specify the kind of charitable annuities it proposes to offer. Also, a statement of the financial condition, management and affairs of the organization and any affiliate thereof is needed. A qualified actuarial opinion relating to the annuity reserves and other actuarial items is required to be submitted with the annual report. A segregated reserve is required and it must be invested in the same manner that persons of reasonable prudence, discretion and intelligence exercise in the management of a like enterprise. For annuities issued prior to July 1, 1998, the reserves must be calculated using the 1971 individual annuity mortality table with a six percent discount rate for current annuities and a four percent discount rate for deferred annuities. Annuity reserves issued after the above date must be calculated in accordance with Sec. 48.74.030. The charity also must maintain a surplus of 10% of all reserves. If a charity reinsures gift annuity contracts according to Washington state law, it must include the reinsured amount in the actuarial calculation, but a deduction is then taken against that value. See Sec. 48.38.020(6). The gift annuity contract must include the value of the property transferred, the amount of the annuity to be paid to the transferor or the transferor's nominee, the manner in which, and the intervals at which payment is to be made, the age of the person during whose life payment is to be made and the reasonable value as of the date of the agreement of the benefits thereby created calculated in accordance with Sec. 48.38.020(3)(a). Washington will fine charities for issuing gift annuities without a permit.

Charitable gift annuity issuance by universities in Washington and The Evergreen State College is regulated under Sec. 28B.10.485, which allows the issuance of gift annuities without a permit. However, such organizations are required to maintain 100% of the assets given in exchange for the annuity for the lifetimes of the respective annuitants.

State Contact Information:

Kristofer Graap
Office of the Insurance Commissioner
P.O. Box 40259
Olympia, WA 98504-0259
(360) 725-7206
KrisG@oic.wa.gov

Other information can be found at Revised Code of Washington Sec. 28B.10.487 and Annual Report Information.

West Virginia

As of July 1, 2006, charitable gift annuities are regulated under West Virginia Code Section 33-13B-1-6. To qualify for exemption, a charity must possess a minimum of $300,000 in unrestricted assets and have been in continuous operation for at least three years or be a successor or affiliate of a charitable organization that has been in continuous operation for three years. Notice must be made to the state insurance commissioner in writing by September 30, 2006 or on the date on which the charity enters into its first charitable gift annuity agreement. The notice must identify the organization, be signed by an officer or director and certify that the organization is a charitable organization issuing a qualified gift annuity. The organization must disclose to the donor in the annuity agreement that a qualified charitable gift annuity is not insurance under the laws of West Virginia, is not subject to regulation by the Commissioner and is not protected by the West Virginia Life and Health Insurance Guaranty Association. Issuance of a gift annuity without notice may subject the charitable organization to penalties. Fines are not to exceed $1,000 per qualified gift annuity agreement issued.

State Contact Information

Office of the Insurance Commissioner
Financial Conditions Division
PO Box 50540
Charleston, WV 25305-0540
(304) 558-2100

West Virginia Notification Form, click here.

Wisconsin

Wisconsin regulates gift annuities under Wisconsin Statutes Secs. 615.03 through 615.15. Under these provisions, a permit is required to issue gift annuities. Permits may be granted to a non-profit domestic or foreign corporation engaged solely in bona fide charitable, religious, missionary, educational or philanthropic activities, which has been in active operation for at least 10 years. There is a $100 application fee payable to the Commissioner of Insurance. The charity is required to maintain a segregated reserve. The reserve also must maintain a surplus of 10% or $100,000, whichever is greater. Charities seeking permits are required to include state-specific disclosure language. Charities with permits may not be required to include such language. If the charity chooses to include such language, it must resubmit its sample documents to the state. An annual statement is due each March 1st for the prior calendar year, with a $50 filing fee. An actuary must verify the reserve calculation as part of the annual report. Wisconsin places the following restrictions on reserve fund investments: 20% limitation on equities, 20% limitation on mutual funds, 20% limitation on real estate and a prohibition on foreign investments. Investment restrictions apply to the charity's entire reserve fund or a separate Wisconsin-only reserve fund if created by the charity.

State Contact Information:

For questions regarding permit applications:
Tim Vande Hey
Bureau of Financial Analysis and Examinations
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873
(608) 267-5297
(800) 236-8517
tim.vandehey@oci.state.wi.us

Bureau of Financial Analysis and Examinations
(608) 266-3585
financial@oci.state.wi.us

For questions regarding annual filings:
Stephen Caughill, CPA
(608) 267-2049
steve.caughill@oci.state.wi.us

Additional forms are available by clicking here or here.

Wyoming

State law does not specifically address charitable gift annuities.