# Title 26.1 — Insurance

## Chapter 26.1-34.1 — Charitable Gift Annuities

### § 26.1-34.1-01. Application for certificate of exemption to issue gift annuities.

A domestic or foreign corporation organized and operated exclusively as, or for the purpose
of aiding, an educational, religious, charitable, scientific, or philanthropic institution and which is
organized as a nonprofit organization without profit to any person, may apply to the
commissioner for a certificate of exemption to receive gifts of money or other property
conditioned upon, or in return for, its agreement to pay an annuity to a donor or nominee or
both. The corporation shall include with its application any documents or information the
commissioner reasonably requires, including:
1. Its name, location, and organization;
2. Evidence that it possesses a current tax-exempt status under the laws of the United
States;
3. A designation form appointing the commissioner as its attorney upon whom may be
served all lawful process in any action, suit, or proceeding instituted by or on behalf of
an annuitant or beneficiary arising out of any annuity contract;
4. A statement of the financial condition, management, and affairs of the organization,
including an accurate and complete financial statement consisting of a balance sheet
and income and expense statement, showing the current financial condition of the
corporation and sworn to by the officer of the corporation having the responsibility for
preparing such statement; and
5. A filing fee of one hundred dollars coincident with its application.
### § 26.1-34.1-02. Issuance of certificate of exemption to issue gift annuities.

The commissioner shall issue a certificate of exemption if:
1. All requirements of this chapter have been met; and
2. The commissioner is satisfied that the corporation is in a position to competently
execute its responsibilities relative to such annuity contracts.
### § 26.1-34.1-03. Segregated account.

1. Every corporation possessing a certificate of exemption shall maintain a segregated
account for all of its gift annuity liabilities.
2. The assets of the segregated account are not liable for any debts of the corporation
other than those incurred pursuant to this chapter.
3. The segregated account must be adequate to meet the future payments under all
outstanding annuity agreements.
### § 26.1-34.1-04. Contents of annuity contract or policy form.

Each charitable annuity contract or policy form used or issued by the corporation must
include at least the following information:
1. The value of the property to be transferred;
2. The amount of the periodic annuity benefits to be paid;
3. The manner in which and the intervals at which payment is to be made;
4. The age of the person during whose life payment is to be made; and
5. The reasonable value as of the date of the agreement of the benefits thereby created.
### § 26.1-34.1-05. Continued compliance.

The commissioner may require that a corporation possessing a certificate of exemption
submit periodically any report the commissioner determines to be desirable or necessary to
ascertain compliance with requirements of this chapter. The commissioner, whenever the
commissioner determines it to be expedient, may make or cause to be made an examination of
the assets and liabilities and other affairs of the corporation as the same pertains to annuity
agreements entered into pursuant to this chapter. The reasonable expenses incurred for any
such examination must be fixed and paid in accordance with section 26.1-03-19.6.

### § 26.1-34.1-06. Grounds for denial, revocation, or suspension of certificate of

exemption.
The commissioner may refuse to grant, or may revoke or suspend, a certificate of
exemption if the commissioner finds that the corporation does not meet or continue to meet the
requirements of this chapter or that the corporation has violated this chapter or chapter 26.1-04.
### § 26.1-34.1-07. Other applicable code provisions.

Except as prescribed in this chapter, the corporation is otherwise exempt from the
provisions of this code and other insurance laws.
