Degree of Regulation: Charitable gift annuities are exempt from insurance regulation under Tennessee Code Annotated, Sections 56-52-101 through 56-52-107. To qualify for the exemption, a charity must have been in continuous operation for at least 3 years and have a minimum of $1,000,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement on the date it enters into a gift annuity agreement. If the charity is an institution of higher education within the State of Tennessee, then the minimum unrestricted assets is $300,000.

Notification/Contact with State Regulators: A notice to the Commissioner of Insurance is required on or before the date of acceptance of the first gift annuity agreement.

Disclosure Language Required: The annuity agreement must include a notice in a separate paragraph in a type size no smaller than that used in the gift annuity agreement

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

Further Details: Failure to qualify and comply with the above provisions permits the Tennessee Insurance Commissioner to fine the charity up to $1,000 per agreement until it does comply.

Links to State Regulations Pages: The notification form can be found at:
http://www.state.tn.us/commerce/insurance/index.html

1) Under heading *Laws and Rule*, click on *Laws @ Lexis-Nexis.com*
2) In *Search* box, type *Gift Annuities* and click on *Go*.
3) *Tennessee* will pop up. Click on *+* symbol for *Tennessee Code*.
4) Click *+* symbol for *TITLE 56 INSURANCE*.
5) Click *+* symbol for *CHAPTER 52 CHARITABLE GIFT ANNUITIES*
6) Click *+* symbol for *à More* and then… click *check mark* in boxes for 56-52-101 through 56-52-107 and click *print* for all sections…

Contact:

Phil Adams
Analyst
Financial Affairs Section/Admissions
Department of Commerce and Insurance
500 James Robertson Parkway, 4th Floor
Nashville, TN 37243
(615) 741-1670