Degree of Regulation: Under Nevada Revised Statutes, Sections 688A.281 through 688A.285, charitable gift annuities are exempt from insurance regulation. To qualify for the exemption, charities must have been in continuous operation for at least three years (or be the successor or affiliate of an organization in operation for that period of time), and have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the assets transferred for the annuity gift.

Notification/Contact with State Regulators: A charity must file notice with the Nevada Division of Insurance within 90 days of issuing its first annuity in the state, certifying that it is a charitable organization and that the annuities it issues are qualified charitable gift annuities under IRC Secs. 501(m)(5) and 514(c)(5).

Disclosure Language Required: A charity is required to include a notice to donor in the annuity agreement, in a separate paragraph and using print size no smaller than that generally used in the rest of the agreement.

Suggested Language for State Disclosure: “A charitable gift annuity is not insurance under the laws of Nevada and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association.”

Further Details: Excluded from the definition of a qualified gift annuity, and thus not exempt from insurance regulation, is an annuity for which any person is paid compensation that is contingent upon the issuance of the annuity or based upon the value of the annuity (other than a payment for reinsurance to an insurer licensed to issue insurance in Nevada).

Links to State Regulations Pages: The statute can be found at http://www.leg.state.nv.us/NRS/NRS-688A.html#NRS688ASec281

State Contact:

Lou Roggensack
Actuary 1
Life and Health Section
Division of Insurance
Nevada Department of Business and Industry
788 Fairview Drive, Suite 300
Carson City, NV 89701-5491
Phone: (775) 687-4270, ext. 245
(800) 992-0900
E-mail: roggen@doi.state.nv.us

Status Requests:

Nancy Hoffman
Life and Health Section
Division of Insurance
Nevada Department of Business and Industry
788 Fairview Drive, Suite 300
Carson City, NV 89701-5491
Phone: (775) 687-4270 ext. 253
(800) 992-0900
E-mail: lhadmin@doi.state.nv.us