Regulation of Charitable Gift Annuities
Degree of Regulation:
- Years of operation - three years continuous operation (or be the successor or affiliate of an organization in operation for that period of time)
- Minimum assets - $100,000 in available unrestricted assets (cash, cash equivalents or publicly traded securities exclusive of the assets funding the annuity agreement and adjusted for inflation).
Actions Required for Exemption:
A charity must notify the Department of Insurance and certify that it is a charitable organization and that the annuities to be offered are qualified charitable gift annuities as defined in Section 41-120 of the Idaho Code. A charity should also acknowledge that it will include the required disclosure language (see below) in its Idaho annuity agreements..
Disclosure and Agreement Content Requirements:
A charity must provide the following disclosure statement in each gift annuity agreement in a separate paragraph and print size no smaller than that used in the agreement: “This charitable gift annuity is not insurance under Idaho law and is not subject to regulation by the Department of Insurance or protected by a guaranty association affiliated with the Department.”
The insurance department director may demand compliance by certified letter and impose a fine of up to $1,000 each for annuities issued during the time the organization is not in compliance.
Links to State Regulations Pages:
- Idaho Code Sections 41-114 and 41-120
- Website: http://www.doi.idaho.gov/company/Misc/Charitable.aspx
Insurance Department Contact Information:
Idaho Department of Insurance
700 West State Street
P.O. Box 83720
Boise, ID 83720-0043
Phone: (208) 334-4309
Fax: (208) 334-4398