Degree of Regulation: Pursuant to HB 4679 (enacted March 30, 2006 and effective June 9, 2006) charitable gift annuities are exempt from insurance regulation under West Virginia Code Section 33-13B-1-6,. To qualify for exemption, a charity must possess a minimum of $300,000 in unrestricted assets and have been in continuous operation for at least three years or be a successor or affiliate of a charitable organization that has been in continuous operation for three years.

Notification/Contact with State Regulators: Notice must be made to the state insurance commissioner in writing by the later of September 30, 2006 or on the date on which the charity enters into its first charitable gift annuity agreement. The notice must identify the organization, be signed by an officer or director and certify that the organization is a charitable organization issuing a qualified gift annuity.

Disclosure Language Required: Separate paragraph, and in a type size no smaller than that used in the gift annuity agreement.

Language for State Disclosure Wording: “A qualified charitable gift annuity is not insurance under the laws of West Virginia, is not subject to regulation by the West Virginia Insurance Commissioner, and is not protected by the West Virginia life and health insurance guaranty association established in article 26A, chapter 33 of the West Virginia Code or by any other guaranty association established by the West Virginia Code.”.

Further Details: Issuance of a gift annuity without complying with the above notice provisions may subject the charitable organization to penalties. Fines are not to exceed $1,000 per annuity issued.

Links to State Regulations Pages:

West Virginia Code Section 33-13B-1-6, click here.

West Virginia Notification Form, click here

West Virginia Insurance Department Contact Information:

Office of the Insurance Commissioner
Financial Conditions Division
PO Box 50540
Charleston, WV 25305-0540
(304) 558-2100