New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 4 - ACTUARIAL SERVICES › Subchapter 8 - CHARITABLE ANNUITIES › Section 11:4-8.3 - Application for a special permit

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A qualified organization proposing to enter into an annuity agreement pursuant to 17B:17-13.1 shall first apply to the Commissioner for approval as a special permit holder. The application shall be in a form prescribed by the Commissioner. An application shall include, but not be limited to, the following:
1. A completed application form;
2. Organizational documents, including the articles of incorporation or articles of association and bylaws;
3. The applicant's organizational chart, which shall identify the parent organization, and all subsidiaries and affiliates of the applicant;
4. The applicant's or, where not available, the applicant's parent organization's, most recent audited financial statements and the Independent Auditors Report;
5. Documentation from the Internal Revenue Service that the applicant is exempt from Federal income tax pursuant to Section 501(c)(3) of the Internal Revenue Code;
6. The most recent Internal Revenue Form 990 and/or any other annual submissions that the Internal Revenue Service may require because of the applicant's tax exempt status;
7. Documentation that the applicant is registered and current with the New Jersey Department of the Treasury as a domestic or foreign entity authorized to do business in New Jersey;
8. A copy of the Letter of Registration or the Letter of Exemption issued to the applicant by the New Jersey Department of Law and Public Safety, Division of Consumer Affairs, Charities Registration Section;
9. Evidence that the applicant has been in active operation for at least 10 years pursuant to N.J.S.A. 17B:17-13.1a;
10. Identification of any planned giving organization of which the applicant is a member;
11. The board resolution requiring the segregation of assets for annuity benefits;
12. The most recent annual statement for the segregated account, which shall demonstrate that the applicant has a surplus amount equal to the greater of 10 percent of the reserves or $ 100,000 pursuant to 11:4-8.6(a)2. The statement shall be prepared on a calendar year basis unless the applicant is requesting to file this and all future statements on a fiscal year basis. If no annuities have been issued in any state, the applicant may file as a replacement for the annual statement documentation that a segregated account has been established with assets of at least $ 100,000;
13. The name of the qualified actuary and/or actuarial firm with which the applicant has contracted for the purpose of reserve valuations.
14. If the applicant has any inforce annuity agreements:
i. A Certificate of Valuation of the Annuity Liabilities signed by a qualified actuary and notarized; and
ii. A statement signed by the actuary setting forth his or her opinion as to the adequacy of the reserves reported in the annual statement;
15. The workpapers demonstrating the calculation of the reserves;
16. If the applicant seeks a waiver of the actuarial opinion requirement pursuant to 11:4-8.8(b), the information in (a)16i through iii below. Where such waiver is requested, the applicant shall not be required to file the information set forth at (a)13 and 14 above unless notified by the Department that the waiver has been denied.
i. The name of the individual or the firm responsible for determining the reserve liability;
ii. A description of the individual or firm's experience; and
iii. The software to be used to calculate the reserve liability.
17. A copy of each form of agreement that the organization proposes to use when it enters into annuity agreements with donors as described at 11:4-8.4;
18. A plan of operation for the segregated account, including the investment strategy pursuant to 11:4-8.7;
19. The maximum annuity rates that the applicant intends to use for each form of annuity. If the applicant does not use the rates adopted by the American Council on Gift Annuities as permitted for annuities issued in New Jersey, a demonstration that the rates meet the requirements of 11:4-8.5(a); and
20. A non-refundable application fee of $ 100.00 made payable to "State of New Jersey--General Treasury."