INSURANCE CODE
CHAPTER 102. CHARITABLE GIFT ANNUITIES
SUBCHAPTER A. GENERAL PROVISIONS
§ 102.001. DEFINITIONS. In this chapter:
(1) "Charitable gift annuity" means an annuity:
(A) that is payable over the lives of one or two
individuals;
(B) that is made in return for the transfer of cash or
other property to a charitable organization; and
(C) the actuarial value of which is less than the value
of the cash or other property transferred, with the difference in
those values being a charitable deduction for federal tax purposes.
(2) "Charitable organization" means an entity described by:
(A) Section 501(c)(3), Internal Revenue Code of 1986;
or
(B) Section 170(c), Internal Revenue Code of 1986.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 102.002. QUALIFIED CHARITABLE GIFT ANNUITY. A
charitable gift annuity is a qualified charitable gift annuity for
purposes of this chapter if it was issued before September 1, 1995,
or if it is:
(1) described by Section 501(m)(5), Internal Revenue Code
of 1986; and
(2) issued by a charitable organization that on the date of
the annuity agreement:
(A) has, exclusive of the assets funding the annuity
agreement, a minimum of $100,000 in unrestricted cash, cash
equivalents, or publicly traded securities; 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.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER B. ISSUANCE OF CHARITABLE GIFT ANNUITY
§ 102.051. NOT INSURANCE; EFFECT OF CERTAIN LAWS. The
issuance of a qualified charitable gift annuity:
(1) does not constitute engaging in the business of
insurance in this state;
(2) does not violate Section 15.05 or 17.46, Business &
Commerce Code; and
(3) is not an unconscionable action or course of action for
purposes of Section 17.50(a)(3), Business & Commerce Code.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER C. NOTICE
§ 102.101. NOTICE TO DONOR. (a) A charitable
organization that issues a qualified charitable gift annuity shall
give to the donor, at the time an agreement for a qualified
charitable gift annuity is entered into, written notice that the
annuity is not:
(1) insurance under the laws of this state;
(2) subject to regulation by the department; and
(3) protected by a guaranty association affiliated
with the department.
(b) The notice must be in a separate paragraph of the
annuity agreement in a print size at least as large as the print
size generally used in the agreement.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 102.102. NOTICE TO DEPARTMENT. (a) A charitable
organization that issues qualified charitable gift annuities shall
notify the department's annuities division in writing not later
than the date on which the organization enters into the
organization's first qualified charitable gift annuity agreement.
(b) The notice required by this section must:
(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.
(c) The charitable organization may not be required to
submit additional information except to determine appropriate
penalties under Section 102.104.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 102.103. EFFECT ON ANNUITY OF FAILURE TO PROVIDE
NOTICE. A charitable gift annuity that otherwise meets the
requirements of Section 102.002 is a qualified charitable gift
annuity without regard to whether the charitable organization that
issues the annuity complies with the notice requirements of this
subchapter.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
§ 102.104. ENFORCEMENT OF NOTICE
REQUIREMENTS. (a) The commissioner may enforce the notice
requirements of this subchapter by sending by certified mail,
return receipt requested, a letter demanding that the charitable
organization comply with the notice requirements.
(b) The department may fine the charitable organization in
an amount not to exceed $1,000 for each qualified charitable gift
annuity agreement issued by the organization until the time the
organization complies with this subchapter.
Added by Acts 1999, 76th Leg., ch. 101, § 1, eff. Sept. 1, 1999.
SUBCHAPTER D. EFFECT OF CHARITABLE GIFT ANNUITY IN LITIGATION AND
CERTAIN OTHER PROCEEDINGS
§ 102.151. IMMUNITY. Any person or entity involved in
the issuance of a qualified charitable gift annuity shall have
immunity from suit, including both a defense to liability and the
right not to bear the cost, burden, and risk of discovery and trial,
as to any claim brought by or on behalf of the donor or the donor's
heirs or distributees alleging that the issuance of a charitable
gift annuity constitutes engaging in the business of insurance in
this state. An interlocutory appeal may be taken if a court denies
or otherwise fails to grant a motion for summary judgment that is
based on an assertion of the immunity provided in this section.
Added by Acts 2001, 77th Leg., ch. 1420, § 11.015(a), eff. Sept.
1, 2001.
§ 102.152. TREATMENT OF ANNUITY AS CHARITABLE GIFT
ANNUITY; ESTOPPEL. In any litigation or other proceeding brought
by or on behalf of a donor or the donor's heirs or distributees, an
annuity that the donor has treated as a charitable gift annuity in a
filing with the United States Internal Revenue Service shall be
considered to be a charitable gift annuity issued by a charitable
organization, as described by Subchapters A and B and Section
101.053(b).
Added by Acts 2001, 77th Leg., ch. 1420, § 11.015(a), eff. Sept.
1, 2001.
