Gift Annuity State Regulatory Structure

State Regulatory Structure

Gift annuities are treated as insurance under most state regulatory codes and subject to regulation by the State Insurance Commissioner. A gift annuity is regulated by the law of the state where the donor has legal residency.

Choose a state below to learn about its regulation of gift annuities or scroll down to learn about the different state regulatory structure types: registration, notification, conditional and silent.

State Regulatory Structure
Registration States *
Notification States *
Conditional States *
Silent States *

* State Regulatory Structure Types

Registration States:

Registration Requirements - A number of states require that a charity obtain a permit to issue gift annuities in the state. Charities must register in the state by filing an application for permit. The application typically requires submission of sample gift annuity documents on each type of gift annuity combination offered by the charity. The charity must also provide its annuity payout rate schedule. If the charity is not using ACGA rates, the state may require actuarial verification of the charity's rates. Financial information on the charity must be submitted including information on its reserve account(s) and investments. Many states also require information on a charity's board of directors. Most states will permit a charity to establish a gift annuity committee and provide information on the committee members for registration purposes.

If you are offering the new IRA to CGA rollover option, updated contracts may need to be submitted for approval. If you adopt the ACGA rate schedule, you may need to submit an updated rate schedule when new rates are issued.

Administration and Filings - Registration states require that the charity maintain a segregated gift annuity reserve account. Required reserve levels and investment requirements vary by state. At the end of each year, a charity must provide an annual report on gift annuities in the state. Annual reporting forms are provided by most states. Charities are asked to provide totals for how many annuities have been written in the state, the number of annuitants who have passed away during the year and reserve calculations. Reserves are calculated using specified state tables and rates. In some states, an actuary or accountant must verify reserve calculations.

Registration States - Alabama, Arkansas, California, Florida, Hawaii, Maryland, New Jersey, New York, North Dakota, Puerto Rico, Tennessee, Washington

Notification States:

Registration Requirements - Notification states require notification by the charity to issue gift annuities in the state if the charity meets the state criteria. A notification state typically requires that the charity possess $300,000 to $500,000 in unrestricted assets. Most notification states also require that the charity be in existence for a period, usually three to five years. Assuming that these minimum requirements have been met, the charity may comply with state regulations by sending the state insurance commissioner a letter of notification of intent to issue gift annuities in the state. The state typically requires standard language to be used in the gift annuity agreements and this language varies by state.

Notification States - Alaska, Connecticut, Georgia, Idaho, Iowa, Mississippi, Missouri, Nevada, New Hampshire, New Mexico, North Carolina, Oklahoma, Texas, West Virginia

Conditional States:

Registration Requirements - Conditional exemption states require that the charity meet certain requirements to issue gift annuities in the state. No registration or further notification is needed once the minimum requirements are met. A conditional exemption state typically requires that the charity possess $300,000 to $500,000 in unrestricted assets. Most conditional exemption states also require that the charity be in existence for a period, usually 3-5 years. Once these requirements are met, the charity may issue gift annuities in the state.

Conditional States - Arizona, Colorado, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Oregon, Pennsylvania, South Carolina, South Dakota, Utah, Vermont, Virginia, Wisconsin

Silent States:

Registration Requirements - Silent states generally omit mention of gift annuities in their state Code and or regulations with respect to the issuance of gift annuities in the state. A few silent states have one or more court cases pertaining to gift annuities, but no further guidance. Charities should exercise caution and seek the advice of counsel before issuing gift annuities in these states.

Silent States: District of Columbia, Delaware, Ohio, Rhode Island, Wyoming


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