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Iowa

Regulation of Charitable Gift Annuities

Degree of Regulation:

Gift annuities are regulated under State of Iowa Laws Section 508F.1 through 508F.8.

  • 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 - the lesser of $300,000 or five times the face value of total outstanding gift annuities in unrestricted cash, cash equivalents or publicly traded securities, not including the gift annuity funding assets

Actions Required for Exemption:

Written notification must be given to the Iowa Insurance Division by the date it enters into its first qualified charitable gift annuity agreement. The notice must contain the signature of an officer or director of the charity, identify the name and address of the organization, include a copy of the IRS letter granting the charity tax-exempt status and certify that the charity is a bona fide charitable organization and that the annuities offered are qualifying charitable gift annuities as defined by state law.

Disclosure and Agreement Content Requirements:

The following specific disclosure statement must be included in all gift annuity agreements:

“A qualified charitable gift annuity is not insurance under the laws of Iowa and is not subject to regulation by the commissioner or protected by an insurance guaranty fund or an insurance guaranty association.”

Reserve Requirements:

None

Annual Reporting:

None

Compliance/Enforcement:

Enforcement may be made by demand letter.  Failure to qualify and comply with the above provisions shall permit the Iowa Insurance Commissioner to fine the charity up to $1,000 per gift annuity agreement until it does comply.  Further penalties may be imposed after a hearing, with fines up to $50,000.

Links to State Regulations Pages:

State of Iowa Laws Section 508F.1 through 508F.8

Insurance Department Contact Information:

James Thornton or Wayne Lecher
Product and Producer Regulation
Iowa Insurance Division
330 Maple Street
Des Moines, IA 50319-0065
Voice: (515) 281-4271
Fax: (515) 281-3059

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