Degree of Regulation: Until 1-1-2006, Oregon is a Permit issuing state. Starting 1-1-2006, Oregon is no longer a Permit issuing state, but charity must qualify to be immune from following the Oregon Insurance Code, which is required by commercial insurance companies.

Starting 1-1-2006, the charitable organization must:

1) have a minimum of $300,000 in net assets as shown by an annual audited financial statement by an independent certified public accountant (CPA);

2) have been in continuous operation for at least five years, and

3) maintain a separate, distinct trust fund as a reserve fund, adequate to meet future payments under all outstanding annuity agreements. See links below.

Notification/Contact with State Regulators: Notification to the Oregon Insurance Dept. is NOT required if the above requirements are met.

Disclosure Language Required: Charity shall disclose in writing to each donor and annuitant, that the annuity is (1) not issued by an insurance company, (2) is not subject to regulation by the state of Oregon or (3) protected by an insurance guaranty association. These requirements can be met by placing such disclosure wording in the charitable gift annuity agreement.

Further Details:

1) If charity already holds a certificate of authority (permit) from Oregon, it:

a) may continue to issue annuity agreements, even if it does NOT have $300,000 in net assets or has been in continuous operation for five years;

b) shall NOT be required to hold a certificate of authority after 12-31-2005;

c) shall return any certificates held as of 12-31-2005 to OR Insurance Dept.;

d) annual report filings required for the year 2005 shall be submitted to the Oregon Insurance Dept, even if 2005 reports are due in 2006.

2) Annuity forms and applications to be used starting 1-1-2006, need NOT be submitted for approval to the Oregon Insurance Dept.

Links to Further Information. (Note: These two links below require Adobe Reader.)

1) CGA Changes in OREGON on 1-1-06:
http://www.cbs.state.or.us/external/ins/docs/company/gift_annuities-deregulation.pdf

2) Copy of House Bill HB2092 (Effective 1-1-2006):
http://www.leg.state.or.us/05reg/measpdf/hb2000.dir/hb2092.en.pdf

Oregon Department of Insurance Contact Information:

For further assistance, you may contact:

Linda J. Rothenberger, Para-analyst
Department of Consumer and Business Services
Oregon Insurance Division-4
P.O. Box 14480
Salem, OR 97309-0405
(503) 947-7227
Email: linda.j.rothenberger@state.or.us