Degree of Regulation: Under Official Code of Georgia Annotated Sections 33-58-1 to 33-58-6, charitable gift annuities are exempt from regulation as an insurance company. Charities must qualify for this exemption by having been in continuous operation for at least 3 years, or be the successor or affiliate of an organization in operation for at least that time. In addition the charity must have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the annuity gift. A copy of the charity's audited financial statement must be filed annually once it becomes available.

Notification/Contact with State Regulators: A charity must notify the state that it is issuing gift annuities by the date on which it enters into its first gift annuity agreement. Notification is required if the charity is based in the state of Georgia or if its donors reside there.

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 Georgia and is not subject to regulation by the Insurance Commissioner or protected by any insurance guaranty association."

Further Details: Failure to qualify and comply with Title 33 of the Official Code of Georgia shall permit the Georgia Insurance Commissioner to fine the charity up to $1,000 per agreement until it does comply.

Links to State Regulations Pages:
http://www.legis.state.ga.us/cgi-bin/gl_codes_detail.pl?code=33-58-1

State Contact:

Kim Samuel
Life and Health Division
Georgia Dept. of Insurance
902 West Tower
Martin Luther King. Jr. Drive
Atlanta, GA 30334
Phone: (404) 657-2799
Fax: (404) 657-7743