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26.1-34.1 Charitable Gift Annuities

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CHAPTER 26.1-34.1CHARITABLE GIFT ANNUITIES26.1-34.1-01.Application for certificate of exemption to issue gift annuities.Adomestic or foreign corporation organized and operated exclusively as, or for the purpose of<br>aiding, an educational, religious, charitable, scientific, or philanthropic institution and which is<br>organized as a nonprofit organization without profit to any person, may apply to the<br>commissioner for a certificate of exemption to receive gifts of money or other property<br>conditioned upon, or in return for, its agreement to pay an annuity to a donor or nominee or both.<br>The corporation shall include with its application any documents or information the commissioner<br>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<br>States;3.A designation form appointing the commissioner as its attorney upon whom may be<br>served all lawful process in any action, suit, or proceeding instituted by or on behalf<br>of an annuitant or beneficiary arising out of any annuity contract;4.A statement of the financial condition, management, and affairs of the organization,<br>including an accurate and complete financial statement consisting of a balance<br>sheet and income and expense statement, showing the current financial condition of<br>the corporation and sworn to by the officer of the corporation having the<br>responsibility for preparing such statement; and5.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.Thecommissioner shall issue a certificate of exemption if:1.All requirements of this chapter have been met; and2.The commissioner is satisfied that the corporation is in a position to competently<br>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<br>account for all of its gift annuity liabilities.2.The assets of the segregated account are not liable for any debts of the corporation<br>other than those incurred pursuant to this chapter.3.The segregated account must be adequate to meet the future payments under all<br>outstanding annuity agreements.26.1-34.1-04. Contents of annuity contract or policy form. Each charitable annuitycontract or policy form used or issued by the corporation must include at least the following<br>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;Page No. 14.The age of the person during whose life payment is to be made; and5.The reasonable value as of the date of the agreement of the benefits thereby<br>created.26.1-34.1-05.Continued compliance.The commissioner may require that acorporation possessing a certificate of exemption submit periodically any report the<br>commissioner determines to be desirable or necessary to ascertain compliance with<br>requirements of this chapter. The commissioner, whenever the commissioner determines it to be<br>expedient, may make or cause to be made an examination of the assets and liabilities and other<br>affairs of the corporation as the same pertains to annuity agreements entered into pursuant to<br>this chapter. The reasonable expenses incurred for any such examination must be fixed and<br>paid in accordance with section 26.1-03-19.6.26.1-34.1-06.Grounds for denial, revocation, or suspension of certificate ofexemption. The commissioner may refuse to grant, or may revoke or suspend, a certificate of<br>exemption if the commissioner finds that the corporation does not meet or continue to meet the<br>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.Page No. 2Document Outlinechapter 26.1-34.1 charitable gift annuities