Degree of Regulation: Under Montana Code Annotated, Sections 33-20-701 through 33-20-705, a charity must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years. In addition, the charity must have at least $300,000 in net worth or at least $100,000 in unrestricted cash, cash equivalents or marketable securities, exclusive of the assets funding the gift annuity agreement. A charity must maintain a separate annuity fund holding at least 50% of the total initial value of all gift annuities in force upon acceptance of each gift annuity. If unable to meet these requirements, the charity must reinsure its annuity obligation with a commercial insurance company registered to do business in Montana.
Notification/Contact with State Regulators: A charity must file a written notice with the Insurance Commissioner by the date on which it enters into its first qualified gift annuity agreement. Thereafter, annual notices are required by March 1. The notice must be signed by an officer or director of the charity, identify the name and address of the charity, and certify that charity is a charitable organization and that its annuity agreements are qualified charitable gift annuities. The Montana Insurance Commission provides a "Notification" Form found on their web site (in PDF Format) at: http://sao.state.mt.us/forms/Exams/2007annuals/Qualified%20Charitable%20Organizations%20-%202007%20Renewal.pdf
Disclosure Language Required: The annuity agreement must include a notice, in a separate paragraph in a type size no smaller than that used in the gift annuity agreement.
Suggested Language for State Disclosure Wording: "A qualified charitable gift annuity is not insurance under the laws of this state and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association."
Further Details: Failure of charity to comply with the notice requirements can result in fines of up to $1,000 for each qualified charitable gift annuity agreement issued until it does comply.
Pending Legislation (12-20-04): New Bill (LD-160) has been filed with Montana Legislature. Bill is pending, not yet law. The proposed legislation changes timing of the notice to state from within 90 days of first gift to BEFORE accepting first gift. (To see details: Click here)
Links to State Regulations Pages: http://www.acga-web.org/regs/mtreg2.html
Contact:
John Morrison
Commissioner of Insurance
Montana Department of Insurance
840 Helena Avenue
Helena, MT 59604
Christina Goe, Staff Attorney
(406) 444-1942
While every effort is made to provide accurate data, neither any persons named in these pages nor the American Council on Gift Annuities guarantees the accuracy of the data presented here.
The user of this information is solely responsible for determining and verifying the accuracy of the data presented here and how it is used by the reader. This information is provided solely as a resource.
This information is supplied by:
State Regulations Committee
American Council on Gift Annuities
233 McCrea Street, Suite 400
Indianapolis, IN 46225
Phone: 317-269-6271
Fax: 317-269-6276
E-mail: acga@acga-web.org
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