§431:1-204  Life insurance defined. 
(a)  Life insurance is insurance on human lives and insurance appertaining
thereto or connected therewith.



(b)  For the purposes of this code, the
transacting of life insurance includes contracting to provide additional
benefits in the event of death or dismemberment by accident or accidental
means, or in the case of total and permanent disability of the insured, further
includes effecting optional modes of settlement of proceeds.



(c)  For the purposes of this code, the
transacting of life insurance includes the granting of annuities and endowment
benefits, except for annuities that are provided under a charitable gift
annuity agreement with a donor and issued by a nonprofit educational foundation
or a nonprofit organization that has met the requirements of paragraphs (1) to
(4).



A nonprofit educational foundation or nonprofit
organization issuing charitable gift annuities shall:



(1)  Meet the following requirements:



(A)  The foundation or organization shall have
conducted business in the form of program services or fundraising activities in
the State continuously for at least ten years;



(B)  The foundation or organization shall
maintain a net worth in the State of not less than $200,000 in cash, cash
equivalents, or publicly traded securities, exclusive of the assets funding any
annuity; and



(C)  The foundation or organization shall have
filed an annual statement that certifies compliance with this subsection, on
forms that may be prescribed by the department of the attorney general.  Each
foundation or organization shall file its annual statement with the attorney
general on or before March 15 of each year;



(2)  Maintain segregated assets in a financial
institution equal to at least the sum of the reserves on its outstanding
charitable gift annuity agreements, calculated in accordance with mortality
tables and discount rates to be determined by the commissioner of insurance,
and a surplus of ten per cent of the reserves or the amount of $100,000,
whichever is higher.  The assets shall be segregated as separate and distinct
funds independent of all other funds and shall not be applied toward the
payment of the debts and obligations of the foundation or organization, other
than with respect to the annuity agreements.  The segregated assets shall not
be considered in determining whether the foundation or organization meets the
net worth requirement of paragraph (1)(B).  In determining the fund reserves, a
deduction shall be made, and no surplus shall be required, for all or any
portion of an annuity risk that is lawfully reinsured by an authorized insurer;



(3)  Invest and manage assets as would a prudent
investor, taking into account the purposes, terms, and distribution
requirements expressed in its governing instrument.  To satisfy this standard,
the fiduciary shall exercise reasonable care, skill, and caution; and



(4)  Prominently state on the first page of a
charitable gift annuity agreement that the agreement is not insurance under the
laws of the State, is not subject to regulation by the insurance division, and
is not protected by any state guaranty fund.



Upon the failure of a nonprofit educational
foundation or nonprofit organization to comply with any of the requirements of
paragraphs (1) to (4), a charitable gift annuity agreement issued by the
foundation or organization shall be deemed life insurance and subject to the
provisions of this code governing life insurance.



For the purposes of this subsection:



"Charitable gift annuity agreement"
means a contract under which an individual transfers property to a charity,
conditioned upon the right to receive a specific sum of money for life.



"Nonprofit organization" means an
organization that has been granted tax exempt status as a charitable
organization by the Internal Revenue Service pursuant to section 501(c)(3) of
the Internal Revenue Code of 1986, as amended. [L 1987, c 347, pt of §2; am L
1989, c 91, §1; am L 1994, c 127, §1; am L 2004, c 172, §1; am L 2005, c 136,
§1]