IOWA

Charitable Gift Annuities are regulated by the State of Iowa Laws Section 507B.6 and 508F.1 through 508F.8. Law was passed by the 79th Iowa General Assembly as Senate File 102, and signed by the Governor on April 16, 2001, and became law effective July 1, 2001.

Charities must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years and by having the lesser of, at least $300,000 (or five times the face value of total outstanding gift annuities) in unrestricted cash, cash equivalents or publicly traded securities, not including the assets funding the charity's annuity agreement on the date it enters into a gift annuity agreement.

Notice to Donor: With gift annuities written after June 30, 2001, the annuity agreement shall include a notice in a separate paragraph in a type size no smaller than that generally used in the gift annuity agreement, stating that ...

"This qualified charitable gift annuity is not insurance under the laws of the State of Iowa and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty fund or an insurance guaranty association."

(Note: Verify chosen Disclosure Language wording with your own legal counsel before using.)

Notice to State: A charity that issues gift annuities starting July 1, 2001, shall file a written notice with the Insurance Commissioner not later than 90 days following the effective date of this law or by the date it issues its first qualified charitable gift annuity agreement after 7-01-01. The notice shall be signed by an officer or director of the charitable organization, shall identify the name and address of the charity, shall include a copy of the charity's IRS determination letter, shall certify that charity is a bone fide charitable organization and that its annuity agreements are qualified charitable gift annuities.

Failure to qualify and comply with the above provisions shall permit the Iowa Insurance Commissioner to fine the charity up to $1,000 per gift annuity agreement until it does comply.

The FULL TEXT of the Iowa Law can be seen at ... http://www2.legis.state.ia.us/

Then select "Bill History" under heading "Session" and enter "102" under File Number for a "Senate File", and click on "Get History" and click on "Full Text of SF00102" above heading of "Senate File 102."

This page last updated July 1, 2001.