State RegulationsVA specificDifficulty 2/5
A Virginia charitable organization wants to issue gift annuities to its donors. Under Va. Code § 38.2-3113.2, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Va. Code § 38.2-3113.2, together with § 38.2-106.1, creates the Virginia framework under which a qualified charitable organization may issue charitable gift annuities to its donors. Properly structured within that framework, the arrangement is not treated as an unauthorized insurance transaction requiring producer licensure — the charity acts as the issuing organization contemplated by the statute. This is what allows donors to fund charity while receiving the annuity payments.
Why the other options are wrong
- B) Producer licensure for charity staff is not the requirement; Va. Code § 38.2-3113.2 authorizes the charity's own issuance of properly structured gift annuities.
- C) Virginia expressly permits qualified charities to issue gift annuities under Va. Code § 38.2-3113.2; the charity is not always barred.
- D) The donor-facing purpose is the essence of the product; Va. Code § 38.2-3113.2 does not confine gift annuities to the charity's own employees.
Memory hook
Qualified charity, properly structured gift annuity — no unauthorized-insurer problem.