Degree of Regulation: Charitable gift annuities are exempt from insurance regulation under Wisconsin State Code Sections 615.03-.15. To qualify for exemption, a charity must have been in continuous operation for at least ten years. A segregated reserve fund is required.

Notification/Contact with State Regulators: Application for a certificate of exemption is to be made to the Wisconsin Office of the Commissioner of Insurance prior to issuance of any gift annuity in the state.

Disclosure Language Required: The Wisconsin Department of Insurance provides "suggested wording". Although this wording is not mandated by Wisconsin law or regulations, it is recommended that charities place the wording into new Wisconsin gift annuity agreements. The wording should be placed in a separate paragraph, in type no smaller than that used in the agreement generally.

Language for State Disclosure Wording: “This qualified charitable Gift Annuity is insurance under the laws of the State of Wisconsin and [Name of Charity], as its issuer, is subject to regulation by Wisconsin's Office of the Commissioner of Insurance with respect to its gift annuity program. However, this qualified charitable gift annuity is not protected by the Wisconsin Insurance Security Fund or any other insurance guaranty association. All of the unrestricted assets of [Name of Charity] stand behind this promise to pay.”

Further Details: Generally the investment limitations apply to the reserves held for all annuities However, if the charity establishes, with the permission of the Insurance Department, a state-specific account to hold only the reserves for its Wisconsin gift annuities, the investment limitations only apply to that account. In either event the reserve fund must include the required reserve calculation amount plus a surplus of the greater of 10% of the reserves or $100,000. There is a $200 filing fee - $100 due at the time of application, and $100 due at the time the certificate is granted. A detailed annual statement on its reserve fund is due each year by March 1, along with a verification by an actuary of the reserve calculation. There is also a $50 annual renewal fee.

Links to State Regulations Pages:

Wisconsin State Code Sections 615.03-.15, click here.

Application for Certificate of Authority Instructions , click here.

Wisconsin Insurance Department Contact Information:

For questions regarding permit applications:

Tim Vande Hey
Bureau of Financial Analysis and Examinations
Office of the Commissioner of Insurance
P.O. Box 7873
Madison, WI 53707-7873
(608) 267-5297
(800) 236-8517
tim.vandehey@oci.state.wi.us

For questions regarding annual filings:

Stephen Caughill, CPA
(608) 267-2049
steve.caughill@oci.state.wi.us