§ 16-114. Special permit required for organizations, hospitals, or community foundations to mak...
West's Annotated Code of MarylandInsuranceEffective: October 1, 2017
Effective: October 1, 2017
MD Code, Insurance, § 16-114
§ 16-114. Special permit required for organizations, hospitals, or community foundations to make agreements for annuity payments
(a) In this section, “community foundation” means a nonprofit organization that is:
(b) 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)(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:
(2) The Commissioner may issue a special permit to a community foundation that has been in existence for at least 5 years but less than 10 years if the community foundation maintains assets in an amount up to 100% of the contributions made to the community foundation, as determined by the Commissioner.
(d)(1) Each special permit holder shall have and maintain assets at least equal to adequate reserves on its outstanding agreements for annuity payments with donors as indicated by its audited fiscal year-end financial statements.
(e) A special permit issued under this section authorizes the special permit holder to receive gifts of money or other property conditional on, or in consideration of, the special permit holder's agreement to pay an annuity to the donor or the donor's nominee and to make and carry out agreements for annuity payments with donors.
(f) A special permit is in effect only as long as the special permit holder is exempt from federal income taxation under § 501 of the Internal Revenue Code.
(g)(1) If the Commissioner finds, after notice and hearing, that a special permit holder has failed to comply with the requirements of this section or is not exempt from federal income taxation under § 501 of the Internal Revenue Code, the Commissioner may:
(h)(1) Except as otherwise provided in this section, a special permit holder is exempt from the provisions of this article with respect to issuing annuities.
(i)(1) Other than by agreements for annuity payments with donors, an educational or religious organization, hospital, or community foundation may agree to:
(j) Notwithstanding the absence of express power in the charter of a domestic educational, religious, or hospital corporation or community foundation, the corporation or community foundation may make the agreements for annuity payments with donors or other agreements with respect to conditional donations that are expressly allowed by this section.
Credits
Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 12, eff. Sept. 30, 1999; Acts 1999, c. 333, § 1, eff. Oct. 1, 1999; Acts 2017, c. 504, § 1, eff. Oct. 1, 2017.
Formerly Art. 48A, § 487.
MD Code, Insurance, § 16-114, MD INSURANCE § 16-114
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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