38.2-3113.2 - Qualified charitable gift annuities; issuance not business of insurance; disclosures to donors; unfair trade practices provisions not applicable. - Virginia Statutes

§ 38.2-3113.2. Qualified charitable gift annuities; issuance not business ofinsurance; disclosures to donors; unfair trade practices provisions notapplicable.

A. The issuance of a qualified charitable gift annuity does not constituteengaging in the business of insurance in this Commonwealth. A charitable giftannuity issued before the effective date of this section is a qualifiedcharitable gift annuity for purposes of this title if it meets therequirements of § 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 (26U.S.C. § 514 (c) (5)), and the issuance of that charitable gift annuity doesnot constitute engaging in the business of insurance in this Commonwealth.

B. When entering into an agreement for a qualified charitable gift annuity,the charitable organization shall disclose to the donor in writing in theannuity agreement that a qualified charitable gift annuity is not insuranceunder the laws of this Commonwealth and is neither subject to regulation bythe Commission nor protected by the Virginia Life, Accident and SicknessInsurance Guaranty Association. The notice provisions required by thissubsection shall be in a separate paragraph in a print size no smaller thanthat employed in the annuity agreement generally.

C. The solicitation or issuance of a qualified charitable gift annuity doesnot constitute a violation of the unfair trade practices provisions ofChapter 5 (§ 38.2-500 et seq.) of this title.

(1996, c. 425.)