Degree of Regulation: Charitable Gift Annuities are exempt from insurance regulation under New Mexico Statutes Annotated, Section 59A-1-16.1. A charity must qualify for exemption from regulation as an insurance company by being tax exempt and by having been in continuous operation for at least 3 years. In addition, the charity must have a fund balance (assets in excess of liabilities) of at least $300,000, or unencumbered assets in its gift annuity fund (not counting reserves) of at least $300,000.

Notification/Contact with State Regulators: A charity that issues qualified charitable gift annuities must send a notice to the Registrar of Charitable Trusts, New Mexico Insurance Division. The notice must be signed by an officer or director of the charity and must identify the organization, certify that the organization is a charitable organization and state that annuities issued shall be qualified charitable gift annuities. Notification is a one time event and need not be done annually.

Disclosure Language Required: The charity must include a disclosure statement in the gift annuity agreement, in a separate paragraph, using print no smaller than that generally used in rest of agreement

Language for State Disclosure Wording: “A charitable gift annuity is not insurance under the laws of New Mexico and is not subject to regulation by the New Mexico Insurance Division or protected by a guaranty association affiliated with the division.”

Further Details: The issuance of a qualified charitable gift annuity shall not constitute a violation of the "Unfair Practices Act."

Links to State Regulations Pages: For the text of the Charitable Gift Annuities regulation, click on this link www.legis.state.nm.us. Click on 'Bill Finder'. You will need the following data: Bill Number: 307 / Chamber: Senate / Legis Type: Bills / Session: 99 Regular.

Contact:

Diana Bonal
Administrative Operations Manager
New Mexico Public Regulation Commission
Insurance Division
Life and Health Bureau
Policy Form and Rate Filing Section
P.O. Box 1269
Santa Fe, NM 87504-1269
(505) 827-4561