Degree of Regulation: Issuance of charitable gift annuities is regulated under Section 431:1-204(c), of the Hawaii Revised Statutes. A charity must have conducted business continuously in the state, either in the form of program services or fundraising activity, for at least 10 years. A charity must also hold in the state a minimum of $200,000 in cash, cash equivalents, or publicly-traded securities. A segregated reserve fund is required.

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

Disclosure Language Required: A charity is required to prominently include a notice to donor on the first page of the annuity agreement.

Suggested Language for State Disclosure: “A charitable gift annuity is not insurance under the laws of the State of Hawaii, is not subject to regulation by the State’s insurance division, and is not protected by any State guaranty fund.”

Further Details: The segregated reserve fund must hold a minimum surplus of $100,000, in addition to an actuarially determined amount based on existing annuities. Investment of the reserve fund is subject to the prudent investor standard. (Note that the reserve fund is a separate requirement from the minimum asset requirement.) An annual statement is due March 15, filed with the State Attorney General.

Links to State Regulations Pages:

Hawaii Revised Statutes Section 431:1-204, click here.

Annual Statement form, click here.

Hawaii Insurance Department Contact Information:

Paul Yuen
Supervising Attorney
State of Hawaii Insurance Division
Department of Commerce and
Consumer Affairs
P.O. Box 3614
Honolulu, HI 96811
Phone: (808) 586-2790
E-mail: insurance@dcca.hawaii.gov