Degree of Regulation: Charitable gift annuities are exempt from state insurance regulation under Connecticut General Statutes Sections 38a-1030 to 38a-1034. However, charities must qualify for exemption by having been in continuous operation for at least 3 years and having at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the annuity gift.

Notification/Contact with State Regulators: Charities are required to provide notification to the Connecticut Insurance Commissioner by the date they issue their first annuity.

Disclosure Language Required: A charity is required to notify its donors in writing (in a separate paragraph of the agreement, using print no smaller than that generally used in rest of agreement) that the gift annuity is a qualified charitable gift annuity, is not insurance, and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association.

Suggested Language for State Disclosure Wording: A charitable gift annuity is not insurance under the laws of Connecticut and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association.

Further Details: Failure to qualify and comply with Public Act No. 99-52, shall permit the Connecticut Insurance Commissioner to fine the charity up to $1,000 per agreement until it does comply.

Links to State Regulations Pages: http://www.cga.ct.gov/ps99/Act/pa/1999PA-00052-R00SB-01260-PA.htm

State Insurance Department Contact:

Vanessa Medina
Legal Department
Connecticut Insurance Department
PO Box 816
Hartford, CT 06142-0816
(860)297-3804