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§1110
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§1110 . Charitable annuity societies exempt; special permits.
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§1110(a)
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(a) The superintendent may, in his discretion, issue a special permit to make annuity agreements with donors to any duly organized domestic or foreign non-stock corporation or association conducted without profit and engaged in active operation for at least 10 years prior thereto solely in bona fide charitable, religious, missionary, educational or philanthropic activities. The permit shall authorize such corporation or association to receive gifts of cash and other property conditioned upon, or in return for, its agreement to pay an annuity to the donor, or his nominee, and to make and carry out such annuity agreement. Every such corporation or association shall, before making such agreement, file with the superintendent copies of its forms of agreements with annuitants and a schedule of its maximum annuity rates, which shall be computed on the basis of the annuity standard adopted by it for calculating its reserves so as to return to it upon the annuitant's death a residue at least equal to 0.5 the original gift or other consideration for such annuity.
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§1110(b)
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(b) Every such domestic corporation or association shall maintain admitted assets at least equal to the greater of (i) the sum of its reserves on its outstanding agreements, calculated in accordance with §4217 of this chapter, and a surplus of 10 of such reserves, or (ii) the amount of $100,000. In determining such reserves a deduction shall be made for all or any portion an annuity risk which is reinsured by a life insurance company authorized to do business in this state. The required admitted assets shall be invested in accordance with the prudent investor standard as defined in section 11-2. 3 the estates, powers trusts law shall not be subject to the investment limitations set forth in this chapter. Such assets shall be segregated as separate distinct funds, independent all other funds such corporation or association, shall not be applied to pay its debts obligations or for any purpose except the aforesaid annuity benefits.
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§1110(c)
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(c) No such corporation or association organized under the laws of another state shall be permitted to make such annuity agreements in this state unless it complies with all requirements of (this §) imposed upon like domestic corporations or associations.
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§1110(d)
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(d) No such corporation or association shall make or issue in this state any annuity contract before obtaining a permit issued in accordance with the provisions of (this §) except that if its requisite reserve on its outstanding annuity agreements computed in accordance with §4217 of this chapter does not exceed the amount of $500,000, it may make gift annuity agreements in this state and shall be exempted from securing a permit provided it maintains the reserve required by §4217 of this chapter and a surplus of at least 25 of such reserve. If the superintendent finds, after notice and hearing, that any such corporation or association, having such a permit, has failed to comply with the requirements of (this §) ,he may revoke or suspend such permit or order it to cease making new annuity contracts until it complies. The superintendent may, in his discretion, either dispense with the requirement of annual statements by such corporations or associations or accept a sworn statement by 2 or more of its principal officers, in such form as will satisfy the superintendent that the requirements of (this §) are being complied with.
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§1110(e)
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(e) Except as provided in (this §) every such corporation or association shall be exempt from the provisions of this chapter, other than articles 1, 2, 3, 25 and 74 of this chapter. Source Data downloaded: 2009-04-09 14: 14: 37; Processed: 2009-05-08 15: 35: 47
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