Degree of Regulation: Under Section 215 ILCS 5/121-2.10, issuance of charitable gift annuities is exempt from insurance regulation. To qualify for the exemption, a charity must be in continuous operation for 20 years and have an unrestricted fund balance of $2 million. Assets restricted to uses inconsistent with the payment of annuity obligations cannot be counted toward meeting the fund balance requirement. These two requirements are waived if the annuity agreements are reinsured with a commercial insurance company registered to do business in Illinois.

Notification/Contact with State Regulators: Notification is not required.

Disclosure Language Required: No disclosure language is required in the agreement.

Links to State Regulations Pages:

Code Section 215 ILCS 5/121, click here.