Degree of Regulation: Vermont Statutes Title 9, Chapter 68, Sections 2517 to 2518, exempt charitable gift annuities from insurance regulation. To qualify for the exemption, a charity must have been in continuous operation for three years and must have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, in addition to the assets necessary to fund the charity's outstanding annuity obligations on the date it enters into a gift annuity agreement.

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

Disclosure Language Required: Specific disclosure language is required in each gift annuity agreement.

Language for State Disclosure Wording: “Notice to Donor: A charitable gift annuity is not insurance under the laws of the State of Vermont, and is not subject to regulation by the department of banking, insurance, securities, and health care administration or protected by an insurance guaranty association.”

Further Details: Failure to comply with the disclosure provisions permits fines of up to $1,000 per annuity agreement until an organization complies. In addition, an extensive enforcement section further authorizes the Attorney General to bring actions for noncompliance, in which injunctive relief, the dissolution of an in-state charity or the revocation of status as a qualified foreign corporation, or fines of up to $10,000 per violation can be sought.

Links to State Regulations Pages: http://www.leg.state.vt.us/docs/2002/bills/passed/S-060.HTM