Degree of Regulation: Charitable gift annuities are exempt from insurance regulation by the State of Missouri Laws Sections 352.500 - 352.520, which were repealed in June, 2001 and essentially reinstated by new legislation, as a result of a challenge to the original underlying bill. The new legislation became effective August 28, 2001. 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 at least $100,000 in unrestricted cash, cash equivalents or publicly traded securities (exclusive of the assets funding the annuity agreement) on the date it enters into a gift annuity agreement.

Notification/Contact with State Regulators: A charity must notify the Missouri Department of Insurance that it is issuing qualified charitable gift annuities to Missouri residents, or if the charity is based in Missouri and issuing charitable gift annuities. Notices filed with the Department of Insurance under the prior statute are not effective, and new notification was required after the new legislation took effect (August 28, 2001). The notice must be signed by an officer or director of the organization; identify the organization; and certify that the organization is a qualified organization and that the annuities issued by the organization are qualified charitable gift annuities.

Disclosure Language Required: With gift annuities written starting August 28, 2001, the annuity agreement shall include a notice in a separate paragraph in a type size no smaller than that used in the gift annuity agreement.

Language for State Disclosure Wording: "A qualified charitable gift annuity is not insurance under the laws of the state of Missouri and is not subject to regulation by the Department of Insurance or protected by a guaranty association."

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

Links to State Regulations Pages: http://www.senate.state.mo.us/01info/hbsumms/HB664.htm

Contact:

Missouri Department of Insurance
Attn: Cassie Grewing
P.O. Box 690
Jefferson City, MO 65102
(573) 751-3497