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1. Gift annuities are usually regulated by the Office of Secretary of State.

True False

2. While gift annuity regulations may vary by state, there are five basic types of state regulations.

True False

3. Notification states are the most highly regulated states for issuance of gift annuities.

True False

4. In a notification state, a letter by the charity is usually acceptable notice that a charity is issuing its first gift annuity.

True False

5. Upon submitting its application for a permit to issue gift annuities in a registration state, a charity may immediately begin issuing gift annuities in that state.

True False

6. In registration states, gift annuity funds may be held in the charity's general account.

True False

7. In every registration state, segregated reserve accounts must hold no more than the present value of all outstanding gift annuity agreements.

True False

8. One of the stated requirements for the issuance of gift annuities in most states is a minimum number of years in operation.

True False

9. Some states require charities to maintain a minimum level of unrestricted assets in order to issue gift annuities.

True False

10. You should seek legal counsel and proceed with caution if issuing gift annuities in a silent state.

True False

Basic Quiz - 3.3.6 State Regulation