NEVADA

Charitable Gift Annuities are regulated by the State of Nevada Insurance Department with passage of Assembly Bill (AB555), Charitable Gift Annuity Exemption), ammending Chapter 688A of the Nevada Statutes, which become 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 assets transferred for the annuity gift.

A charitable Gift Annuity is NOT an annuity for which any person is paid compensation that is contingent upon the issuance of the annuity or based upon the value of the annuity other than a payment for the reinsurance to an insurer licensed to issue insurance in the state of Nevada.

Charities must notify the State of Nevada that it is issuing gift annuities to Nevada residents or if it is based in Nevada by the later of December 30, 1999 or within 90 days of its issuing its first Nevada gift annuity after September 30, 1999.

Charity that issues qualified charitable gift annuities shall send a notice to the Nevada Insurance Commissioner, signed by an officer or director of the charity, that 1) identifies the organization, and 2) certifies that the organization is a charitable organization and 3) that annuities issued are qualified charitable gift annuities. Charity need NOT recertify these same facts in writing annually.

With gift annuities written starting October 1, 1999, charity shall notify donor in writing 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 not insurance under the laws of Nevada, is not subject to regulation by the Nevada Insurance Commissioner or protected by an insurance guaranty association.

Failure to qualify and comply with the disclosure and notification requirements of this Law, shall permit the Nevada Insurance Commissioner to fine the charity up to $1,000 per agreement until it does comply.

Web Site: Text of 1999 Nevada Law (Exempting Gift Annuities):

http://www.leg.state.nv.us/70th/bills/AB/AB555_EN.html

This page last updated July 16, 1999.