I

-

CGAs are REGULATED. Permit issued/regulated by State Insurance Dept.

(10)

AR CA* HI MD* NJ NY* ND* OR* WA* WI

II

-

State Law provides for CONDITIONAL EXEMPTION from regulation of CGAs

(26)

AL* AK* AZ* CO* CT* FL* GA* IA* ID* IL KS MN MO* MS* MT* NC* NH* NM* NV* OK* PA* SD* TN* TX* VA* VT*

III

-

State Law grants BLANKET EXEMPTION from regulation of CGAs.

(9)

IN KY LA MA ME MI NE SC UT

IV

-

State Law does NOT specifically address CGAs in its state insurance/securities laws.

(6)

DE DC OH RI WV WY

Total

(51)

*

-

29 states require State Specific Disclosure Statement in annuity agreements

All

-

Federal Law (Public Law 104-62) also requires charity to supply a Gift Annuity Disclosure Statement to all annuitants in Fund and to all prospective donors prior to their making their FIRST annuity gift (Effective 3-7-96). This is separate from state mandated disclosure language required in gift annuity agreements of some (presently 29) states.

State

Years in Operation

Board
Resolution

Disclosure
Statement

Reserve
Required

Annual
Filing (f)

Investment
Limitations

State Code
Section Nos.

AR

5

Yes

Yes (d,k)

Yes

Less strict

23-63-20

CA

10

Yes

(5) (7)

Yes (e)

Yes

Strict

11520-11524

HI

10 (a)

No

Yes

Yes

431: I - 204

MD

10 (b)

No

Yes

Yes

Yes

Less Strict

487

NJ

10

Yes

(4)

Yes (d,k)

Yes (h)

Strict

17B:17-13.1

NY

10

Yes

(1) (2) (4) (6) (7)

Yes (d)

Yes (g)

Most Strict

1110

ND

No

(1) (5)

Yes

Yes (m)

26.1-34.1

OR

20 (c)

No

Yes (1) (2)

Yes

Yes

731.704-724

WA

3

No

(1)(2)(3)(5)

Yes

Yes

48.38

WI

10

No

(1)

Yes (d,k)

Yes (i)

Less Strict

615.03 - .15

(a)

-

Charity must have $5 million in assets in Hawaii.

(b)

-

In MD, charity must have "physical presence" in state (excluding fund raising). Periodic seminars in homes of MD residents would qualify.

(c)

-

In OR and if non-profit is a certain type of charity (See OR Permit Application paperwork for categories that qualify). OR now allows both Immediate and Deferred Payment Gift Annuities as of 12-01-95.

(d)

-

Rules apply to Reserves for all annuitants in all states (the entire Reserve Account).

(e)

-

For CA annuitants only: California wants separate Trust Account for CA annuities. For "foreign" (outside of CA) charities, trust account for CA annuitants may be outside of California. Law changed 1994, effective 1-1-98.

(f)

-

Charity report activity of annuity fund within 60-90 days of the end of calendar or fiscal year (varies by state). NY is 60 days. In most other states, Annual Report is due in 90 days.

(g)

-

Charity to report fund activity by March 1 for Calendar Year report.

(h)

-

Charity to report fund activity by April 1 for Calendar Year report.

(i)

-

In TN annual report due 90 days after close of fiscal year and annual filing fee of $100 due by March each year.

(k)

-

Charity may elect to segregate funds for this state in separate account within segregated Annuity Fund and follow this state's investment rules only for this separate account.

(m)

-

ND annual report includes submission of audited financial statements.

(1)

-

Age of annuitant(s) must be shown in agreement.

(2)

-

Agreements must be sequentially numbered (show in upper right corner). [Suggested for all gift annuity agreements.]

(3)

-

Corrective action required if age or sex if annuitant is wrong.

(4)

-

NY Insurance Law: Prohibits real estate to be accepted for a gift annuity.
NJ Insurance Dept.: Does not allow charity to invest in or hold real estate in Gift Annuity Fund.

(5)

-

Reasonable Commensurate Value must be shown in body of agreement (same size type as agreement).

(6)

-

Contract is governed by the laws of the state of residence of annuitants; except that NY law will prevail if that state has laws less restrictive than NY. (Consider adding similar wording to all agreements where domicile of charity and state of residence of annuitant(s) both claim jurisdiction, that the most restrictive rules will govern the administration of the gift annuity agreement.)

(7)

-

Each gift annuity agreement shall state (1) value of property transferred, (2) amount of annuity to be paid (3) manner in which and intervals payment to be made, (4) age and sex of person(s) to receive payments for life, (5) reasonable value of benefits created on date of agreement, and (6) date payments are to begin.

State

Minimum Reserve Required

Reserves Reduced by Reinsurance

Initial Filing

Annual Filing

Per New Agreement

AR

$ 100,000

Yes

CA

Yes

$ 3,272

$ 101

$ 66 (10)

HI

MD

$ 100,000

Yes

NJ

$ 100,000 ( 7 )

Yes

NY

$ 100,000 ( 8 )

( 9 )

ND

$ 100

OR

$ 100,000

WA

$ 100,000

$ 25

$ 25

$ 5

WI

$ 100,000

Yes

$ 200

$ 50

All

-

Special Permit/Certificate of Authority needed by charity and issued by state's Department of Insurance. Annual Report of Activity of Gift Annuity Fund to be filed with all states (except for ND). Charity must file its Gift Annuity Rates and Forms of Gift Annuity Agreements with the State and keep state informed of any changes.

(7)

-

$100,000 plus actuarially calculated Reserve for all gifts, including 10% Excess Reserve.

(8)

-

NY Law requires charity to file for Permit once Required Reserve (including 10% Excess) totals $500,000 or more. Charity will not receive permit until actuarially calculated reserve account exceeds $500,000 (about $800,000 in total face value of all annuities in force). Minimum Reserve to be maintained is $100,000. (Minimum Reserve account size changed from $80,000 to $500,000, becoming law on 9/20/2000 when Senate Bill #5740 was signed by Governor Pataki, making it the new Chapter 431 of the Laws of 2000.)

(9)

-

Charity may reinsure any annuity gift over the Required Reserve of $100,000, but only by using a "treaty" (negotiated) agreement with an insurance company licensed in NY.

(10)

-

Fee per agreement for first 10 new agreements per quarter. Additional new agreements per quarter are discounted in stages down to $30 each for more than 40 new agreements. Charity must submit copies of new agreements to CA Insurance Dept. CA Insurance Dept. has authority from CA Legislature to increase all CGA fees by up to 10% a year without obtaining Legislature's approval. Be sure to check with CA Insurance Dept. concerning current fee schedule before you file.

State

Years in
Operation

Disclosure in
Agreement (r)

Notes

Notice to
State

Available
Assets

Date Rules
In Effect

AL

Yes

(r10)

Yes ( i )

4-9-97

AK

3

Yes (q)

Yes (r5)

$300,000

10-01-01

AZ

Yes

4-09-97 (o)

CO

3

Yes

CT

3

Yes

(r1)

Yes (k)

$300,000

10-01-99

FL

5

Yes

(r-4)

Yes (k)

5-15-96 (n)

GA

3

Yes

10-1-00 (r7)

Yes (k)

$300,000

7-01-2000

IA

3

Yes (q)

Yes (r5)

$300,000

7-01-01

ID

3

Yes (q)

Yes (k)

$ 100,000

IL

20 (j)

Yes

(r2)

$2 Million (j)

KS

Yes

Yes (i)

7-07-95 (p)

MN

3

Yes

10-1-99 (r5)

Yes (i)

$ 300,000

1996

MO

3

Yes

Yes (k)

$ 100,000

8-28-01

MS

3

Yes (q)

Yes (r5)

$300,000

7-01-01

MT

3

Yes (q) (i)

(r1) (r4)

Yes (k)

$300,000 (r9)

4-24-03

NC

Yes

Yes (k)

$ 100,000

11-01-98

NH

3

Yes (i)

(r1) (r7) (r3)

Yes(k)

$300,000

5-28-99

NM

3

Yes

Yes(k)

$300,000

7-01-99

NV

3

Yes

12-31-99 (r5)

Yes(k)

$300,000

10-01-99

OK

3

Yes

(r1)

Yes (k)

$100,000

7-21-98

PA

3

Yes (l)

(r4)

(No)

$ 100,000

12-16-96

SD

10

Yes (m)

(No)

$ 500,000

7-01-01

TN

3

Yes (q)

Yes (r5)

$1 Million (r8)

6-12-01

TX

3

Yes

Yes (k)

$ 100,000

9-01-95

VA

3

Yes

(No)

$ 100,000

3-31-96

VT

Yes (q)

Yes (r5)

$300,000

7-01-01

( i )

-

Exemption granted by state's Securities Department.

( j )

-

Requirements are waived if annuity agreements are reinsured.

( k )

-

Contact states for forms and instructions (see following pages). Notice must be filed concurrent (winthin 90 days) with writing first annuity (11 states or more).

( l )

-

Charity must also comply with PA charitable solicitation law. Requires addition of 3/4 page of extra wording in Agreement, including date of incorporation and name of officer from whom annuitant can obtain charity's financial data. Donor must sign agreement.

( m )

-

Exemption applies to both South Dakota and "foreign"corporation charities. Charity must supply copies of annuity marketing materials.

( n )

-

FL no longer issues permits. Annual Report of Annuity Fund activity is required after initial notice is given to Florida Insurance Dept.

( o )

-

Exempt only if state mandated wording placed in agreement. See Arizona Statute Section 20-119 and 20-103.

( p )

-

Exempt if KS Securities Laws Section 17-1261 and 17-1262 are met.

( q )

-

Provision is in State Law for fine of $1,000 per agreement for non-compliance.

( r )

-

The agreement must be signed by donor and charity. May become a universal requirement among all states with advent of possible passage of Model Act. Donor must sign Disclosure Statement. May be handled by including Disclosure Statement in agreement and having donor sign the annuity agreement.

(r1)

-

Provision in state law for fine of $1,000 per gift agreement until charity complies with all aspects of state law.

(r2)

-

Provision in state law for fine of $10,000 until charity complies with all aspects of state law.

(r3)

-

Charity may issue gift annuity agreements at annuity rates no higher than those suggested by ACGA (American Council on Gift Annuities).

(r4)

-

Reserve Fund is required.

(r5)

-

Notice to Commissioner by date shown or 90 days of issuing 1st annuity.

(r7)

-

Notice to Commissioner by date shown or date of issue of 1st annuity.

(r8)

-

Minimum $300,000 if charity is TN institution of higher education.

(r9)

-

Minimum $300,000 net worth OR $100,000 in unrestricted cash or securities.

(r10)

-

See Alabama State page under "State Regulations" for details, instructions and forms.

(s)

-

Must have been in continuous operation for five (5) years.

(t)

-

Must have been in continuous operation for three (3) years.
Sect. 59-1801 to 1803, NE Law. (Effective 3-26-96.)

(u)

-

Exemptions are administrative and not statutory.

CO IL MD OR TX

FL MN MO NE PA VA

AZ IA

CA NC ND OK

CT NH NM NV    
Note: All 4 states have passed the NAIC Model Exemption Act.

GA (1), TN (2), NY (3)
Note: (1) NAIC Model Exemption Act. (2) Permit Law (effective 6/19/2000). (3) Required Reserves, after which Permit is required raised to $500,000 effective 9/20/2000.

AK (1), IA, MS, MO (2), NY (4), SD, TN (3), VT.
Note: All - NAIC Model Exemption Act, effective 7-1-01 (except AK, MO, NY & TN). Effective dates: (1) 10-01-01, (2) 8-28-01, (3) 6-12-01, (4) New investment rules effective 11-1-2001.

None

MT (1)
(1) Effective Date: 4-24-03

ND

-

Presently issues Permits (as of 4-20-98), but is reviewing status in light of the Philanthropy Protection Act of 1995 (Public Law 104-62).

State

1983a Table
Agreements issued
Before

Annuity 2000 Table
Agreements Issued
On or after

FL

07-01-1998

07-01-1998

NJ

01-01-2001

01-01-2001

NY

01-01-2000

01-01-2000

OR

01-01-2001

01-01-2001

WA

07-01-1998

07-01-1998

WI

01-01-1999

01-01-1999

State

Contact State for
Permit / Notice

Disclosure
Wording

Effective
Date of Law

State Contacts

Contact Name

Phone Number

AL

Notice

Yes

4/9/1997

Rena Davis

334-242-2984

AK

Notice

Yes

10/1/2001

Janice Stamper

907-269-7905

AR

Permit

No

John Shields

501-371-2766

AZ

Yes

4/9/1997

CA

Permit

Yes

Carol Harmon

415-538-4420

CO

No

Yes

1995

CT

Notice

Yes

1/1/2000

Nancy Monahan

860-297-3804

DE

[ Silent State ]

DC

[ Silent State ]

FL

Notice

Yes

5/15/1996

Terry Reynolds

850-413-2430

GA

Notice

Yes

7/1/2000

Kimberly Raper

404-657-9205

HI

Permit

No

Paul Yuen

808-586-2790

IA

Notice

Yes

7/1/2001

James Thornton

515-281-4271

ID

Notice

Yes

Carol Anderson

208-334-4309

IL

No

No

1995

[ See web site ]

IN

No

No

[ Blanket Exemption ]

KS

No

No

Steve Wassom

785-296-3307

KY

No

No

[ Blanket Exemption ]

LA

No

No

[ Blanket Exemption ]

MA

No

No

[ Blanket Exemption ]

MD

Permit

Yes

9/30/1995

Howard Max

410-468-2205

ME

No

No

[ Blanket Exemption ]

MI

No

No

[ Blanket Exemption ]

MN

Notice

No

1996

Diane Walters

651-296-4973

MO

Notice

Yes

8/28/2001

Joe Haverstick

573-526-5235

MS

Notice

Yes

7/1/2001

Kathy French

888-236-6167

MT

Notice

Yes

4/24/2003

Richard Kain

406-444-4448

NC

Notice

Yes

11/1/1998

Carolyn Thomas

919-733-5060
Ext. 345

NE

No

No

1996

[ Blanket Exemption ]

NV

Notice

Yes

10/1/1999

Guy Perkins

775-681-7660

NH

Notice

Yes

5/28/1999

Karen Jensen

603-271-3591

NJ

Permit

No

Adelaide Phelan

609-292-5427
Ext. 50328

NM

Notice

Yes

Diana Bonal

505-827-4561

NY

Permit

Yes

5/13/1999

John Lucchesi

212-480-4778

ND

Permit

Yes

1998

Leona Ziegler

701-328-3328

OH

[ Silent State ]

OK

Notice

Yes

7/21/1998

Todd Hopper

405-521-3996

OR

Permit

Yes

11/14/1995

Donna Bleiler

503-947-7275

PA

No

Yes

12/16/1996

RI

[ Silent State ]

SC

No

No

[ Blanket Exemption ]

SD

Yes

7/1/2001

TN

Notice

Yes

6/12/2001

Phil Adams

615-741-1670

TX

Notice

Yes

9/1/1995

John Carter

512-305-7722

UT

No

No

[ Blanket Exemption ]

VA

No

Yes

3/31/1996

VT

No

Yes

7/1/2001

WA

Permit

Yes

James Tompkins

360-407-0537

WV

[ Silent State ]

WI

Permit

Steve Junior

608-267-4388

WY

[ Silent State ]

Totals

10           18

29     15

[Full details at:
http://www.pgresources.com/regs.html ]

© 2002 James B. Potter [ Please e-mail any changes to: james@pgresources.com ]

James B. Potter, President (Chair)
Planned Giving Resources, Inc.
P.O. Box 665
Baker, Louisiana 70704-0665
Phone: (225) 774-6700  FAX: (225) 775-6910
E-mail: jimbpotter@aol.com
Web Site: www.pgresources.com

J. Lance Jacobson, JD
Development Officer
Mayo Foundation for Medical Education and Research
200 First Street, SW
Rochester, MN 55905
(507) 284-9915 / Fax: (507) 284-9927
E-mail: jacobson.lance@mayo.edu

Lindsay L. Lapole, III, CFRE
Territorial Planned Giving Director
The Salvation Army, USA Southern Territory
1424 N.E. Expressway
Atlanta, GA 30329
(414) 728-6734 / Fax: (404) 728-6734
E-mail: Lindsay_lapole@uss.salvationarmy.org

Edith Matulka
Planned Giving Services
3147 Fairview Avenue, E.
Seattle, WA 98102
(206) 329-8144 / Fax: (206) 329-8230
E-mail: eematulka@aol.com

Terry L. Simmons, Partner
Thompson & Knight, LLP
1700 Pacific, Suite 3300
Dallas, TX 75201
(214) 969-1419 / Fax: (214) 880-3373
E-mail: simmonst@tklaw.com

While every effort is made to provide accurate data, using third party volunteers, neither the persons named in this document nor the American Council on Gift Annuities guarantees the accuracy of the data presented here.

The user of this information is solely responsible for determining and verifying the accuracy of the data presented here and how it is used by the reader. This information is provided solely as a resource. 

End of State Regulations Summary Report