PARRIS N. GLENDENING, Governor

Ch. 11

"Casualty insurance" § 1-101
"Commissioner" § 1-101
"Health insurance" § 1-101
"Insurance business" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Marine insurance" § 1-101
"Person" § 1-101
"Property insurance" § 1-101
"Reinsurance" § 1-101
"State" § 1-101
"Title insurance" § 1-101

16-114. CHARITABLE GIFT ANNUITIES.

(A)     "COMMUNITY FOUNDATION" DEFINED.

IN THIS SECTION, "COMMUNITY FOUNDATION" MEANS A NONPROFIT
ORGANIZATION THAT IS:

(1)      FORMED TO RECEIVE CONTRIBUTIONS AND DISTRIBUTE MONEY TO
MEET CULTURAL, EDUCATIONAL, CHARITABLE, ENVIRONMENTAL, CIVIC, OR
OTHER SIMILAR NEEDS OF A COMMUNITY; AND

(2)      GOVERNED BY A BOARD OF PRIVATE CITIZENS WHO RESIDE IN THE
COMMUNITY.

(B)      SPECIAL PERMIT — REQUIRED.

AN EDUCATIONAL OR RELIGIOUS ORGANIZATION, HOSPITAL, OR COMMUNITY
FOUNDATION MAY NOT MAKE OR ISSUE IN THE STATE AGREEMENTS FOR ANNUITY
PAYMENTS WITH DONORS UNTIL IT HAS OBTAINED FROM THE COMMISSIONER A
SPECIAL PERMIT ISSUED IN ACCORDANCE WITH THIS SECTION.

(C)     SAME — QUALIFICATIONS.

(1) ON APPLICATION, THE COMMISSIONER MAY ISSUE A SPECIAL
PERMIT TO MAKE AGREEMENTS FOR ANNUITY PAYMENTS WITH DONORS TO AN
EDUCATIONAL OR RELIGIOUS ORGANIZATION NOT CONDUCTED FOR PROFIT AND
ENGAGED IN BONA FIDE EDUCATIONAL OR RELIGIOUS ACTIVITIES, TO A HOSPITAL
IN THE STATE, OR TO A COMMUNITY FOUNDATION IF THE EDUCATIONAL OR
RELIGIOUS ORGANIZATION, HOSPITAL, OR COMMUNITY FOUNDATION:

(I)      EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
HAS BEEN IN ACTIVE OPERATION IN THE STATE FOR AT LEAST 10 YEARS BEFORE
ISSUANCE OF THE SPECIAL PERMIT; AND

(II)     HAS BEEN GRANTED EXEMPTION FROM FEDERAL INCOME
TAXATION UNDER § 501 OF THE INTERNAL REVENUE CODE.

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