Degree of Regulation: Charitable gift annuities are exempt from insurance regulation under the Oklahoma Charitable Gift Annuity Act (Oklahoma Statutes, Title 36, Sections 4071-4082). To qualify for the exemption, a charity must be tax exempt and qualified to do business in the state. In addition, the charity must have been in operation for at least three years and have a minimum of $100,000 in unrestricted assets, not including assets comprising the annuities.

The Act also states that payments must be calculated using rates which will reasonably assure those payments to the annuitant. Each year, the charity must submit a copy of its audited financial statement within 90 days of the date that the charity receives the statement.

Notification/Contact with State Regulators: A charity must notify the Insurance Department that both the organization and the gift annuities are qualified as defined under the Act. Copies of relevant documents must be included with the notification.

Disclosure Language Required: Disclosure language must be included, not only in the annuity agreements, but in any promotional materials or application forms as well.

Language for State Disclosure Wording: “A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department.”

Further Details: Failure to comply can result in fines from $1,000 to $10,000 until the charity complies. In addition, the Commissioner may also commence action in district court to enjoin violations if the violations are determined to be willful or harmful to the public.

Contact:

Rachael Nalliah
Financial Specialist
Department of Insurance
P.O. Box 53408
Oklahoma City, OK 73152-3408
(405) 521-6648
rachaelnalliah@insurance.state.ok.us