Table of Contents Sec. 38a-1030. Definitions. As used in sections 38a-1030 to 38a-1034, inclusive: Sec. 38a-1031. Issuance of charitable gift annuity does not constitute engaging
in the business of insurance. (a) The issuance of a qualified charitable gift annuity
shall not constitute engaging in the business of insurance in this state. Sec. 38a-1032. Written disclosures. (a) When entering into an agreement for a
qualified charitable gift annuity, the charitable organization shall disclose to the donor
in writing in the annuity agreement that a qualified charitable gift annuity is not insurance
under the laws of this state and is not subject to regulation by the Insurance Commissioner or protected by an insurance guaranty association. Sec. 38a-1033. Notice to commissioner. (a) A charitable organization that issues
qualified charitable gift annuities shall notify the Insurance Commissioner, in writing,
by the latter of January 1, 2000, or the date on which it enters into the organization's
first qualified charitable gift annuity agreement. The notice shall: (1) Be signed by an
officer or director of the organization; (2) identify the organization; and (3) certify that:
(A) The organization is a charitable organization; and (B) the annuities issued by the
organization are qualified charitable gift annuities. Sec. 38a-1034. Failure to comply with notice requirements. Validity of charitable gift annuity after failure to give notice. Penalties. The failure of a charitable
organization to comply with the notice requirements imposed under section 38a-1032
or 38a-1033 shall not prevent a charitable gift annuity that otherwise meets the requirements of sections 38a-1030 to 38a-1034, inclusive, from constituting a qualified charitable gift annuity. The Insurance Commissioner may enforce performance of the requirements of sections 38a-1032 and 38a-1033 by sending a letter by certified mail, return
receipt requested, demanding that the charitable organization comply with the requirements of sections 38a-1032 and 38a-1033. The commissioner may fine the charitable
organization in an amount not to exceed one thousand dollars per qualified charitable
gift annuity agreement issued until such time as the charitable organization complies
with the requirements of sections 38a-1032 and 38a-1033.
Sec. 38a-1030. Definitions.
Sec. 38a-1031. Issuance of charitable gift annuity does not constitute engaging in the
business of insurance.
Sec. 38a-1032. Written disclosures.
Sec. 38a-1033. Notice to commissioner.
Sec. 38a-1034. Failure to comply with notice requirements. Validity of charitable gift
annuity after failure to give notice. Penalties.
Secs. 38a-1035 to 38a-1039.
(1) "Charitable gift annuity" means a transfer of cash or other property by a donor
to a charitable organization in return for an annuity payable over one or two lives, under
which the actuarial value of the annuity is less than the value of the cash or other property
transferred and the difference in value constitutes a charitable deduction for federal tax
purposes.
(2) "Charitable organization" means an entity described in: (A) Section 501(c)(3)
of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended (26 USC Section 501(c)(3));
or (B) Section 170(c) of said Internal Revenue Code (26 USC Section 170(c)).
(3) "Qualified charitable gift annuity" means a charitable gift annuity described in
Section 501(m)(5) of said Internal Revenue Code (26 USC Section 501(m)(5)), and
Section 514(c)(5) of said Internal Revenue Code (26 USC Section 514(c)(5)), that is
issued by a charitable organization that on the date of the annuity agreement: (A) Has
a minimum of three hundred thousand dollars in unrestricted cash, cash equivalents or
publicly traded securities, exclusive of the assets funding the annuity agreement; and
(B) has been in continuous operation for at least three years or is a successor or affiliate
of a charitable organization that has been in continuous operation for at least three years.
(P.A. 99-52, S. 1.)
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(b) A charitable gift annuity issued before October 1, 1999, is a qualified charitable
gift annuity for the purposes of sections 38a-1030 to 38a-1034, inclusive, and the issuance of that charitable gift annuity shall not constitute engaging in the business of insurance in this state.
(P.A. 99-52, S. 2.)
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(b) The notice provisions required by this section shall be in a separate paragraph
in a print size no smaller than that employed in the annuity agreement generally.
(P.A. 99-52, S. 3.)
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(b) The organization shall not be required to submit additional information except
to determine appropriate penalties that may be applicable under section 38a-1034.
(P.A. 99-52, S. 4.)
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(P.A. 99-52, S. 5.)
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