Degree of Regulation: Under South Dakota Codified Laws Section 58-1-16, charitable gift annuities are exempt from insurance regulation. To qualify for the exemption, a charity must either be domiciled and have its principal place of business in South Dakota or be qualified in the state as a foreign corporation. In addition, the organization must have been in continuous operation for at least ten (10) years, and have at least $500,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement as of the date of the annuity agreement.

Notification/Contact with State Regulators: Notification is not required.

Disclosure Language Required: Disclosure language is required in each annuity agreement as well as in all promotional materials. The statement must appear in bold 10-point type or larger.

Suggested Language for State Disclosure Wording: "Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance."