Section 0780-01-70-.05 - LICENSING REQUIREMENTS(1) The following items are required to be submitted for the initial registration of any person wishing to apply for a certificate of authority to issue charitable gift annuities:(a) A completed application form adopted for use by the commissioner verified by two (2) of the charitable organization's principal officers;(b) A statement that the charitable organization maintains a charitable gift annuity separate account, invested in accordance with the prudent investor standard as set forth in the Tennessee Uniform Prudent Investor Act, that equals either the total amount of donations for outstanding charitable gift annuities to which the account applies or one hundred ten percent (110%) of the reserves calculated in a manner consistent with T.C.A § 56-52-104(b). In meeting the charitable gift annuity separate account reserve requirement, either by holding the total amount of donations or one hundred ten percent (110%) of the reserves, a charitable organization shall maintain a segregated account for the payment of charitable gift annuities issued in this State on or after January 1, 2009. If the charitable organization maintains a charitable gift annuity separate account that equals one hundred ten percent (110%) of the reserves, the charitable organization must also submit an actuarial opinion;(c) A statement certifying that the charitable organization does not use persons that receive commissions for the sale, solicitation or negotiation of charitable gift annuities;(d) A certificate from the Internal Revenue Service stating that the charity qualifies as an organization described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986;(e) Financial statement as of the end of the charitable organization's previous fiscal year that includes contact information for the charitable organization and has been attested to by two (2) principal officers or has been audited by an independent qualified certified public accountant; and(f) A fee in the amount of six hundred and seventy-five dollars ($675) or in an amount otherwise specified in T.C.A. § 56-4-101(a)(1).(2) The commissioner may, after receiving an application under this Paragraph, request from a charitable organization additional information as deemed necessary or appropriate in reviewing such application.(3) If the commissioner finds that the applicant is in sound financial condition and is otherwise qualified, the commissioner shall issue to the applicant a certificate of authority. If the commissioner does not so find, the commissioner shall deny issuance of the certificate of authority and notify the applicant in writing stating the reasons.(4) For matters pertaining to the issuance of charitable gift annuities, the charitable organization must appoint the commissioner as attorney to receive service of lawful process in any action, suit, or proceeding in any court. This appointment is irrevocable, and binds the charitable organization and any successor in interest, and shall remain in effect so long as there is in force in Tennessee any contract made or issued by the charitable organization, or any obligation arising therefrom.(5) Unless directed otherwise by the Commissioner, an applicant shall file the information required under this Rule with the commissioner by personal delivery or mail addressed to: Tennessee Department of Commerce and Insurance, 500 James Robertson Parkway, Davy Crockett Tower, Fourth Floor, Nashville, Tennessee 37243, Attention: Charitable Gift Annuity Specialist.Tenn. Comp. R. & Regs. 0780-01-70-.05
Public necessity rule filed February 2, 2009; effective through July 17, 2009. Public necessity rule filed February 2, 2009, and effective through July 17, 2009, expired effective July 18, 2009; rule reverted to its previous status. Original rule filed May 5, 2009; effective July 19, 2009.Authority: T.C.A. §§ 56-4-101, 56-52-101 through 56-52-111 and 2008 Public Acts, Chapter 831.