Degree of Regulation: Under State of Iowa Laws Section 508F.1 through 508F.8, charities must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years and by having the lesser of, at least $300,000 (or five times the face value of total outstanding gift annuities) in unrestricted cash, cash equivalents or publicly traded securities, not including the assets funding the charity's annuity agreement on the date it enters into a gift annuity agreement.

Notification/Contact with State Regulators: A charity that issues gift annuities shall file a written notice with the Insurance Commissioner by the date it issues its first qualified charitable gift annuity agreement. The notice shall be signed by an officer or director of the charitable organization, shall identify the name and address of the charity, shall include a copy of the charity's IRS determination letter, shall certify that charity is a bone fide charitable organization and that its annuity agreements are qualified charitable gift annuities.

Disclosure Language Required: The following specific disclosure statement must be included in all gift annuity agreements: “A qualified charitable gift annuity is not insurance under the laws of Iowa and is not subject to regulation by the commissioner or protected by an insurance guaranty fund or an insurance guaranty association.”

Further Details: Failure to qualify and comply with the above provisions shall permit the Iowa Insurance Commissioner to fine the charity up to $1,000 per gift annuity agreement until it does comply.

Links to State Regulations Pages: http://www.legis.state.ia.us/IACODE/2003/508F/2.html

State Contact:

James Thornton, Esq.
Product and Producer Regulation
Iowa Insurance Division
330 Maple Street
Des Moines, IA 50319-0065
Voice: (515) 281-4271
Fax: (515) 281-3059