TEXAS
Regulation of Charitable Gift Annuities
Last Revised on October 2, 2009.
Degree of Regulation:
Issuance of charitable gift annuities is regulated under Chapter 102, Texas Insurance Code.
In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:
- have been in continuous operation for more than three years
- have a minimum of $100,000 in cash, cash equivalents, or publicly-traded securities, exclusive of assets funding the annuity agreements
- provide notice to the Department of Insurance
Actions Required for Exemption:
A charity must file notice with the Texas Department of Insurance certifying its nonprofit and tax exempt status, that the annuities to be offered are charitable gift annuities within the meaning of IRC sections. 501(m)(5) and 514(c)(5), and that the annuity agreements will include the required disclosure language.
Disclosure and Agreement Content Requirements:
A disclosure statement must be included in each gift annuity agreement in a separate paragraph in print size no smaller than that used in the agreement.
Suggested Language for State Disclosure: “This charitable gift annuity is not insurance under the laws of the state of Texas and is not subject to regulation by the Texas Department of Insurance or protected by a guaranty association affiliated with the Department.”
Reserve Requirements:
None
Annual Reporting:
None
Compliance/Enforcement:
Enforcement may be made by demand letter sent via certified mail. Failure to comply permits a fine of up to $1,000 for each annuity issued during the time the organization is not in compliance.
Links to State Regulations:
Chapter 102, Texas Insurance Code
Contact:
Mrs. Shaun Craig
Insurance Specialist
Life/Health Division
Life, Annuity & Credit Section
Texas Department of Insurance
MC-106-1E
P.O. Box 149104
Austin, TX 78714-9104
(512) 322-3595
Email: Shaun.Craig@tdi.state.tx.us
