NEW MEXICO

Charitable Gift Annuities are regulated by the State of New Mexico Insurance Division with passage of the "Charitable Gift Annuities - Exempt from Regulation as Insurance Company" Act (SB307) which became effective July 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 a fund balance (assets in excess of liabilities) of at least $300,000, or unencumbered assets in it gift annuity fund (not counting reserves) of at least $300,000.

Charities must notify state it is issuing gift annuities to New Mexico residents or if it is based in New Mexico by the later of October 1, 1999 or within 90 days of its issuing its first New Mexico gift annuity after June 30, 1999.

Charity that issues qualified charitable gift annuities shall send a Notice, signed by an officer or director of the charity, to the Registrar of Charitable Trusts, New Mexico Insurance Division that 1) identifies the organization, and 2) certifies that the organization is a charitable organization and 3) that annuities issued shall be qualified charitable gift annuities. Notification is a one time event and need not be done annually.

With gift annuities written starting May 28, 1999, charity shall disclose to the donor in the gift annuity 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 and is not subject to regulation by the Insurance Department or protected by an insurance guaranty association affiliated with the Division.

Failure to qualify and comply with the New Mexico Insurance Code shall permit the New Mexico Insurance Superintendent to enforce performance of the requirements by sending a Certified letter demanding that the charity comply with the Notice Requirements in the New Mexico State Insurance Code.

The issuance of a qualified charitable gift annuity shall not constitute a violation of the "Unfair Practices Act."

Website: Text of 1999 New Mexico Law (Charitable Gift Annuities).

Note: New Mexico has an extensive database. For the text of the Charitable Gift Annuities regulation, click on this link www.legis.state.nm.us. Click on 'Bill Finder'. You will need the following data:

Bill Number: 307 / Chamber: Senate / Legis Type: Bills / Session: 99 Regular.
Click on 'Find'. Click on the Bill's link.

On the left of the screen, you will want the 'Final Version' & 'Full Screen' version. The text will be displayed, full screen.

This page last updated August 9, 1999.