Regulation of Charitable Gift Annuities
Degree of Regulation:
- 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 - $300,000 in unrestricted cash, cash equivalents or publicly traded securities (excluding gift annuity funding assets)
- Notification required
Actions Required for Exemption:
The charity must notify the Alaska Insurance Division no later than 90 days of writing its first qualified charitable annuity agreement. Such notice will be signed by an officer or director of the charitable organization and must provide the name and address of the charitable organization. The notification must certify that the issuing organization is a "charitable organization", and that gift annuities issued by the charity are "qualified charitable gift annuities", as defined in the Alaska Statute.
Disclosure and Agreement Content Requirements:
The Statute requires Disclosure Language wording to be placed in the agreement, in bold type in a separate paragraph, in a size no smaller than that found in the annuity agreement generally.
Suggested Language for State Disclosure: "This qualified charitable gift annuity is not an insurance policy in the State of Alaska, is not subject to regulation by the Insurance Division and is not protected by the Life and Health Insurance Guaranty Association established under Alaska Statute AS 21.79.040 or any other association that guarantees payment under a policy of insurance. The State of Alaska does not in any way approve or endorse this annuity agreement."
Enforcement may be made by demand letter sent via certified mail. Failure to comply with the terms of the law will allow the Insurance Division to impose a civil penalty not to exceed $1,000 for each qualified charitable gift annuity agreement, until the charity complies with the requirements of this law.
Links to State Regulations Pages:
Insurance Department Contact Information:
Insurance Financial Examiner
Department of Community and Economic Development
Division of Insurance
550 West 7th Avenue, #1560
Anchorage, AK 99501-3567