Degree of Regulation: Issuance of charitable gift annuities is regulated under Arkansas Code Section 23-63-201(d). A charity must have been in continuous operation for at least five years (or be affiliated with an organization in existence for that time and with sufficient management expertise available). A segregated reserve fund is required, and a board resolution regarding the fund must be enacted.

Notification/Contact with State Regulators: Application for certificate of exemption is to be made to the State Insurance Department prior to issuance of any gift annuity in the state.

Disclosure Language Required: None.

Further Details: The reserve fund must hold a minimum of $50,000. Investment of the segregated reserve fund may be in accordance with specific investment restrictions or the prudent investor standard. With permission of the Insurance Department, the charity may maintain a reserve for Arkansas residents only.

An annual report on the segregated reserve fund is due 90 days after the end of the charity's fiscal year. If investment is per the prudent investor standard, specific information must be included in the annual report, including a description of the organization's investment philosophy, a listing of the members of the charity's investment committee, and certification from the charity's board that the investments conform to the charity's investment philosophy and the prudent investor standard.

The only specific requirement regarding the content of the annuity agreement is that Arkansas law must govern. In addition to registration with the insurance department, a charity must also provide proof of registration (or indicate exemption from such registration) with the Arkansas Secretary of State.

Links to State Regulations Pages:

To access the Arkansas Code online, click here.

To access Rule 90, Charitable Annuities Requirements and Reporting, click here.

Arkansas Insurance Department Contact Information:

Mail applications to:

Insurance Commissioner of the State of Arkansas
1200 West Third Street
Little Rock, AR 72201-1904
Attn: Finance Division

Address questions to:

Dan Honey, Director, Life and Health Division
Phone: 501-371-2800
E-mail: dan.honey@arkansas.gov

or

Brenda Haggard, Manager of Financial Analysis
Phone: 501-371-2665
E-mail: brenda.haggard@arkansas.gov