State Regulations – Busy Early, Quiet for Now
At present things are quiet with respect to state regulation of gift annuities, though earlier this year ACGA and its State Regulations Committee were involved in a couple of legislative efforts.
After the April adoption of the new law in Wisconsin, which reduced the level of gift annuity regulation in that state, ACGA’s attention shifted to New York, where legislation had been introduced relating to reinsurance of gift annuities. What was proposed would have allowed a charity to purchase a commercial annuity and count it as reinsurance in offsetting the reserve obligation. (Currently if a charity wishes to reinsure a gift annuity it must use a reinsurance treaty, something that is available only from a few insurers and can be costly.) While the legislation passed in the Senate, it did not move forward in the Assembly. However, ACGA was pleased to have the assistance of several of its State Agents in the process, which met and/or corresponded with state legislators. Such activity is one of the main roles of the Agents, along with staying alert to changes that might be initiated by the states or bringing to ACGA’s attention beneficial changes that might be pursued proactively. If you’re an ACGA sponsor interested in wearing a state agent badge, click here to register. And if you have any updates regarding changes in your state, you can click here and send us an email.