Degree of Regulation: Issuance of charitable gift annuities is regulated under Section 627.481 of the Florida Statutes. A charity must have been in continuous operation for at least five years. A segregated reserve fund is required.

Notification/Contact with State Regulators: Notification to the State Insurance Department is to be made by the date on which a charity enters into its first annuity in the state.

Disclosure Language Required: A charity is required to include a notice to donor in the annuity agreement.

Suggested Language for State Disclosure: "This annuity is not issued by an insurance company, is subject only to limited regulation by the State of Florida and is not protected or otherwise guaranteed by any government agency."

Agreements for annuities issued by Florida state institutions of higher learning shall include this additional disclosure:

"This agreement is the entire contract between the parties, with rights and responsibilities of each party to the other as set forth herein. The donor or annuitant shall not have recourse against any assets of the state other than any funds or assets donated by, or funds derived from any assets donated by, the donor as set forth herein."

Further Details: Investment of the segregated reserve fund is subject to specific investment restrictions, including a limitation of no more than 50% in equities (including mutual funds) and no more than 10% in any one stock or fund. In lieu of a detailed annual report on the reserve fund, a Sworn Statement is to be filed 60 days after the end of the charity's fiscal year.

In addition to registering with the Office of Insurance Regulation, a charity must provide proof of registration (or proof of exemption from registration) with the Florida Department of State, Division of Corporations.

Links to State Regulations Pages:

Florida Code Section 627.481, click here.

Notification form, click here.

Sworn Statement form, click here.

Florida Insurance Department Contact Information:

Office of Insurance Regulation
Bureau of Specialty Insurers
200 East Gaines Street
Tallahassee, FL 32399-0331
Phone: (850) 413-3144