The New York State Insurance Department is beefing up charitable gift annuity reserve requirements.
A charity that sponsors a program must either file an actuarial opinion supporting the adequacy of program assets, or else hold reserves equal to at least 115% of the reserves that Section 4217 of the New York Insurance Law would require an insurer with a comparable annuity program to hold, officials write in a new notice.
New York officials report in the notice that they have concerns about the adequacy of reserves being held by some charitable gift annuity programs.