WVC 33 -
CHAPTER 33. INSURANCE.
WVC 33 - 13 B-
ARTICLE 13B. CHARITABLE GIFT ANNUITIES.
WVC 33 - 13 B- 1
(a) "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.
(b) "Charitable organization" means an entity described by:
(1) Section 501(c)(3), of the Internal Revenue Code of 1986
(26 U.S.C. 501(c) (3)); or
(2) Section 170(c), of the Internal Revenue Code of 1986 (26
U.S.C. 170 (c)).
(c) "Qualified charitable gift annuity" means a charitable
gift annuity described by 501(m) (5), of the Internal Revenue Code
of 1986 (26 U.S.C. 501(m) (5)), and 514(c) (5), of the Internal
Revenue Code of 1986 (26 U.S.C. 514(c) (5)), that is issued by a
charitable organization that on the date of the annuity agreement:
(1) 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
(2) 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.
WVC 33 - 13 B- 2
§33-13B-2. Charitable gift annuity is not insurance.
Notwithstanding any other provision of this code to the
contrary, the issuance of a qualified charitable gift annuity does
not constitute engaging in the business of insurance in this state,
and the issuance of any charitable gift annuity prior to the first
day of July, two thousand six, does not constitute engaging in the
business of insurance in this state.
WVC 33 - 13 B- 3
§33-13B-3. Notice to donor.
(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, is not subject to regulation by the commissioner and is not
protected by the West Virginia Life and Health Insurance Guaranty
Association established in article twenty-six-a of this chapter or
by any other guaranty association established by this code.
(b) The notice required by this section shall be in a separate
paragraph in a print size no smaller than that employed in the
annuity agreement generally.
WVC 33 - 13 B- 4
§33-13B-4. Notice to Insurance Commission.
(a) A charitable organization that issues qualified charitable
gift annuities shall notify the commissioner of such fact in
writing by the later of the thirtieth day of September, two
thousand six or the date on which it enters into the organization's
first qualified charitable gift annuity agreement.
(b) The notice required by subsection (a) of this section
shall identify the organization, be signed by an officer or
director of the organization, and certify that the organization is
a charitable organization and that the annuities issued by the
organization are qualified charitable gift annuities.
WVC 33 - 13 B- 5
§33-13B-5. Failure to provide required notice; penalties.
Any person who violates any provision of section three or four
of this article may, after notice and hearing pursuant to section
thirteen, article two of this chapter, be fined by the commissioner
a sum not to exceed one thousand dollars per qualified charitable
gift annuity agreement issued: Provided,
That the failure of a
charitable organization to comply with the notice requirements
imposed under section three or four of this article does not
prevent a charitable gift annuity that otherwise meets the
requirements of this article from constituting a qualified
charitable gift annuity.
WVC 33 - 13 B- 6
§33-13B-6. Unfair or deceptive trade practices act not applicable.
The issuance of a qualified charitable gift annuity does not
constitute a violation of article eleven of this chapter.
Note: WV Code updated with legislation passed through the 2012 1st Special Session