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State Regulations

State Agents

We depend on tips from our colleagues throughout the country to help keep us informed of updates or changes to the state regulations.  If you have updates regarding legislation in a state, please send us an email.

Please sign up to be a state agent for our State Regulations Committee, so you can alert us to regulatory or legislative happenings (and be our “go-to” person) in your state. YOU are our best source of intelligence.  To become an agent for the ACGA State Regulations Committee, please complete this form.

Click on a state below or choose a state from the list to view the state regulations. 

 

Initial registration /notification and annual filing required

 

Certain criteria must be met, but no registration/notification required

 

Initial Registration/notification required

 

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Wyoming

Regulation of Charitable Gift Annuities

Degree of Regulation:

State law does not specifically address charitable gift annuities. Legal advice is recommended.

Wisconsin

Regulation of Charitable Gift Annuities


Degree of Regulation:

Effective April 18, 2014, a significant change has occurred in the law governing issuance of charitable gift annuities in Wisconsin. (2013 Wisconsin Act 271) Previously a highly regulated state, requiring application to the Office of the Commissioner of Insurance (OCI) and annual reporting, Wisconsin now provides gift annuities with a general exemption from insurance regulation, with no filing required (either initially or annually) to the OCI.

  • Years of operation – three years continuous operation (or be the successor or affiliate of an organization in operation for that period of time)

Actions Required for Exemption:

A charity that meets the above mentioned requirement is authorized to issue charitable gift annuities.

Disclosure and Agreement Content Requirements:

Annuity agreements must include the following specified disclosure language:

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

Charities that had existing Wisconsin annuities at the time the new law went into effect are required to provide notice of the law change to those donors/annuitants.

Reserve Requirements:

None.

Annual Reporting:

None.

Compliance/Enforcement:

None.

Links to State Regulations Pages:

2013 Wisconsin Act 271

Wisconsin Insurance Department Contact Information:

Bureau of Financial Analysis and Examinations
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873
Kristin Forsberg
(800) 236-8517
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OR
Steve Caughill
(608) 267-2049
This email address is being protected from spambots. You need JavaScript enabled to view it.

West Virginia

Regulation of Charitable Gift Annuities

Degree of Regulation:

Issuance of charitable gift annuities is regulated under West Virginia Code Section 33-13B-1-6.

In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:

  • 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).
  • have a minimum of $300,000 in unrestricted cash, cash equivalents, or publicly-traded securities, exclusive of the assets funding the annuity agreements
  • provide notice to the Office of the Insurance Commissioner

Actions Required for Exemption:

A charity must file notice with the Office of the Insurance Commissioner by the date on which the charity enters into its first charitable gift annuity agreement in the state. 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.

Disclosure and Agreement Content Requirements:

Specific disclosure language must be included in each gift annuity agreement, in a separate paragraph and in a type size no smaller than that used in the rest of the agreement.

Suggested Language for State Disclosure:  “A qualified charitable gift annuity is not insurance under the laws of West Virginia, is not subject to regulation by the West Virginia Insurance Commissioner, and is not protected by the West Virginia life and health insurance guaranty association established in article 26A, chapter 33 of the West Virginia Code or by any other guaranty association established by the West Virginia Code.”

Reserve Requirements:

None

Annual Reporting:

None

Compliance/Enforcement:

Failure to comply with the terms of the law shall permit the Commissioner to assess, after notice and hearing, a fine of up to $1,000 for each annuity issued until the charity does comply.

Links to State Regulations Pages:

West Virginia Code Section 33-13B-1-6

West Virginia Insurance Department Contact Information:

Cristy Dunlap, CAP, MOS
Data Analyst I
WV Offices of the Insurance Commissioner
Financial Conditions Division
PO Box 50540
Charleston, WV 25305-0540
(304) 558-2100

Washington

Regulation of Charitable Gift Annuities

Degree of Regulation:

Issuance of charitable gift annuities is regulated under Revised Code of Washington Chapter 48.38.

In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:

  • have been in continuous operation for three years
  • have $500,000 in unrestricted net assets
  • obtain a certificate of exemption from the Office of Insurance Commissioner.
  • maintain gift annuity reserves, invested in accordance with the prudent investor standard
  • submit an annual filing to the state
  • register as a charitable organization with the Washington Secretary of State (unless exempt from such registration)

Actions Required for Exemption:

Application for a certificate of exemption is to be made to the Washington State Insurance Department prior to issuance of any gift annuity in the state.

There is an application fee of $25.

Disclosure and Agreement Content Requirements:

The annuity agreement must include the following:

  • The value of the property to be transferred
  • The amount of the periodic annuity benefits to be paid
  • The manner in which and the intervals at which payment is to be made
  • The age of the annuitant (date of birth is sufficient)
    The reasonable commensurate value. (IRS present value is acceptable)
  • A misstatement of age provision (providing for corrective action if the age of the annuitant is wrong)
  • Washington law must govern the agreement
  • The donor must sign the agreement or an application form that is attached to the agreement
  • Sequential numbering in the upper right corner
  • Form number in the lower left corner

Reserve Requirements:

The segregated fund must maintain assets at least equal to the sum of a charity’s reserves on its outstanding gift annuity agreements, plus a 10% surplus. The reserves are to be calculated in accordance with prescribed mortality tables and discount rates. A deduction in reserves may be made for any portion of the annuity risk that is reinsured by an authorized life insurance company licensed in both the charity’s state of domicile and the state of issuance.The segregated reserve fund must be invested in the same manner expected by persons of reasonable prudence.

Annual Reporting:

An annual report of the reserve fund is due 60 days after the end of a charity's fiscal year, and must include a certification by an actuary.  A charity must also file annually a copy of its audited financial statement within 120 days of its fiscal year end (unless it has requested and received an extension) and a copy of Form 990 (if applicable) within 15 days of having filed it with the IRS.

The annual report fee, due by March 1 for all registered charities, is $25, plus $5 for each newly issued Washington annuity.

Compliance/Enforcement:

Failure to comply with any of the statutory requirements may result in the suspension or revocation of the certificate of exemption or a fine of up to $10,000.  Late filing of the annual report form will generally result in a fine of $500.00.   A charity that issues a gift annuity without first obtaining a permit will be assessed a fine, with the amount influenced by the number of annuities, the number of years over which they were issued, and how recent the issuance.

Links to State Regulations:

Code of Washington Sec. 48.38
Annual Report Information

Washington Insurance Department Contact Information:

For Registration: Susan Baker or Gayle Pasero, CPCU
Office of the Insurance Commissioner
P.O. Box 40259
Olympia, WA 98504-0259
Susan - (360) 725-7232 or Gayle - (360) 725-7210
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For Financial Filings:  Steve Drutz (Senior Financial Analyst)
Office of the Insurance Commissioner
P.O. Box 40259
Olympia, WA 98504-0259
(360) 725-7205
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Virginia

Regulation of Charitable Gift Annuities

Degree of Regulation:

Issuance of charitable gift annuities is regulated under Sections 38.2-106.1 and 38.2-3113.2 of the Code of Virginia.

In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:

  • have been in continuous operation for at least three years
  • have at least $100,000 in cash, cash equivalents, or publicly-traded securities, not including the assets contributed for annuities

Actions Required for Exemption:

None

Disclosure and Agreement Content Requirements:

Specific disclosure language must be included in each gift annuity agreement.

Suggested Language for State Disclosure: “This charitable gift annuity is not insurance under the laws of the Commonwealth of Virginia and is neither subject to regulation by the Insurance Commission nor protected by the Virginia Life, Accident and Sickness Insurance Guaranty Association.”

Reserve Requirements:

None

Annual Reporting:

None

Compliance/Enforcement:

None specifically stated.

Links to State Regulations Pages:

Sections 38.2-106.1 and 38.2-3113.2 of the Code of Virginia

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