CONNECTICUT

Charitable Gift Annuities are regulated by the State of Connecticut Public Act No. 99-52. Law was approved May 27, 1999 and became effective October 1, 1999.

Charities must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years and having at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the annuity gift. 

Charities must notify state it is issuing gift annuities to Connecticut residents or if it is based in Connecticut by the later of January 1, 2000 or within 90 days of its issuing its first Connecticut gift annuity after September 30, 1999.

With gift annuities written after September 30, 1999, charity shall notify donor in writing, in the agreement in a separate paragraph, using print no smaller than that generally used in rest of agreement, that the gift annuity is a qualified charitable gift annuity, is not insurance is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association.

Failure to qualify and comply with Public Act No. 99-52, shall permit the Connecticut Insurance Commissioner to fine the charity up to $1,000 per agreement until it does comply.

The text of Connecticut Public Act No. 99-52 is found at website...

www.cga.state.ct.us/ps99/Act/pa/1999PA-00052-R00SB-01260-PA.htm

The "What's New" for Connecticut Insurance Department with new contact name and Link to new Public Act 99-52 is found at Website...

www.state.ct.us/cid/whatsnew.htm

This page last updated August 9, 1999.