TENNESSEE

The Tennessee Legislature passed the "Charitable Gift Annuities Exemption Act" Tennessee Code Annotated (T.C.A. Section 56-52-101) which was signed by the Governor of Tennessee on June 12, 2001 and became law on that date.

This version of the NAIC Exemption Model Act was Tennessee House and Senate Bills (HB0799 and SB0932) and was enacted to REPLACE the June, 2000 PERMIT Law enacted just last year. The major difference in this final TN Exemption law as compared to the exemption laws of other states is the large amount of unrestricted funds required in TN.

See the contact information below for sending notification. Follow the Notification Instructions found in Section 56-52-105 of the Tennessee Public Acts 2001, Chapter 380, House Bill 799, found at ... http://www.state.tn.us/commerce/insurance/index.html 

1) Under heading *Laws and Rule*, click on *Laws @ Lexis-Nexis.com*
2) In *Search* box, type *Gift Annuities* and click on *Go*.
3) *Tennessee* will pop up. Click on *+* symbol for *Tennessee Code*.
4) Click *+* symbol for *TITLE 56 INSURANCE*.
5) Click *+* symbol for *CHAPTER 52 CHARITABLE GIFT ANNUITIES*
6) Click *+* symbol for *à More* and then… click *check mark* in boxes for 56-52-101 through 56-52-107 and click *print* for all sections…

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 a minimum of $1,000,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement on the date it enters into a gift annuity agreement.

Exception: If the charity is an institution of higher education within the State of Tennessee, then the minimum unrestricted assets is $300,000.

Notice to Donor: With gift annuities written after July 1, 2001, the annuity agreement shall include a notice in a separate paragraph in a type size no smaller than that used in the gift annuity agreement generally, stating that ...

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

Notice to Commissioner of Commerce and Insurance: A charity that issues gift annuities shall file a written notice with the Commissioner by the later of 90 days after the effective date this act (by 10-01-2001) or the date on which is enters into the organization's first qualified charitable gift annuity agreement. The notice shall be signed by an officer or director of the charity, shall identify the name and address of the charity, shall certify that charity is a charitable organization and that its annuity agreements are qualified charitable gift annuities. There is NO filing fee as a "Notification State." The filing fee as a Permit Issuing State, WAS $500.00 (until 7-01-2001).

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

Send Notice to: Anne Pope, Tennessee Commissioner of Commerce and Insurance, 500 James Robertson Parkway, 4th Floor, Nashville, TN 37243. Questions may be phoned to Sandra Smith at (615) 741- 1633.

This page last updated April 16, 2005.