NORTH DAKOTA

Regulation of Charitable Gift Annuities

Last Revised on October 2, 2009.

Degree of Regulation:

Issuance of charitable gift annuities is regulated under the State Century Code Sections 26.1-34.1-01.

In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:

• apply for a certificate of exemption from the Insurance Department
• maintain gift annuity reserves
• submit an annual filing to the state

Actions Required for Exemption:

Application for a certificate of exemption is to be made to the North Dakota Insurance Department prior to issuance of any gift annuity in the state.

There is a $100 filing fee due with the initial application.

Disclosure and Agreement Content Requirements:

The annuity agreement must include the following:

• The value of the property to be transferred;
• The amount of the periodic annuity benefits to be paid;
• The manner in which and the intervals at which payment is to be made;
• The age of the annuitant; and
• The reasonable commensurate value.

In addition, for a North Dakota resident to qualify for a tax credit for a deferred annuity with a North Dakota charity, the agreement must state that the annuitant’s interest in the annuity cannot be assigned to the charity sooner than 5 years after the contribution has been made (except upon the death of the annuitant). 

Reserve Requirements:

The segregated fund must maintain assets adequate to meet future payments under all outstanding annuity agreements.  There are no specific investment restrictions imposed on the reserve fund.

Annual Reporting:

On an annual basis a charity must submit a copy of its audited financial statement as soon as it is available.

Compliance/Enforcement:

Failure to comply with any of the statutory requirements may result in the suspension or revocation of the permit.

Links to State Regulations:

North Dakota Century Code Sections 26.1-34.1-01

North Dakota Insurance Department Contact Information:

Yvonne Keniston
Company Licensing Specialist
North Dakota Insurance Department
600 East Boulevard, Dept. 401
Bismarck, ND 58505-0320
(701) 328-3328
(800) 247-0560