Regulation of Charitable Gift Annuities
Degree of Regulation:
Charitable gift annuities are exempt from insurance regulation by the State of Missouri Laws Sections 352.500 - 352.520
- Years of operation – three years continuous operation (or be the successor or affiliate of an organization in operation for that period of time)
- Minimum assets - $100,000 in unrestricted cash, cash equivalents or publicly traded securities (exclusive of the assets funding the annuity agreement).
- Organization exempt from federal income tax
Actions Required for Exemption:
A charity must notify the Missouri Department of Insurance that it is issuing qualified charitable gift annuities. The notice must be signed by an officer or director of the organization; identify the organization; and certify that the organization is a qualified organization and that the annuities issued by the organization are qualified charitable gift annuities.
Disclosure and Agreement Content Requirements:
The annuity agreement must include the following notice in a separate paragraph in a type size no smaller than that used in the gift annuity agreement:
"This is a charitable gift annuity. A charitable gift annuity is not insurance under the laws of Missouri and is not subject to regulation by the Missouri Department of Insurance, Financial Institutions and Professional Registration or protected by a guaranty association."
Enforcement may be made by demand letter sent via certified mail. Failure to qualify and comply with the above notification provisions shall permit the Insurance Department to fine the charity up to $1,000 per agreement until it does comply.
Links to State Regulations Pages:
Insurance Department Contact Information:
Senior Office Support Assistant
Company Regulation Division
Missouri Department of Insurance
301 W High Street, Suite 530
P.O. Box 690
Jefferson City MO 65102
Phone : 573-526-4877