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Structured Settlements in Your State

To learn more about the sale of your structured settlement payments, read the statute from your area.


State Statutes

Alabama

The Alabama Structured Settlement Protection Statute House Bill No. 288 ENROLLED, An Act, Relating to transfers of structured settlement payment rights; to provide definitions of terms used in this act, including a definition of the term “structured settlement” that excludes workers’ compensation settlements; to provide for required disclosures to the payee; to require a disclosure statement be provided to the payee by the transferee not less than three days prior to the date on which a payee signs a transfer agreement; to prescribe the style of and what shall be set forth in the disclosure statement from the transferee to the payee; to provide that the payee has the right to cancel the transfer agreement within three business days after the date the agreement was signed; to provide for the approval of transfers of structured settlement payment rights; to require advance authorization by a court or administrative authority based on express findings made after a factual hearing by the court or administrative authority in order for a transfer of structured settlement payment rights to be effective; to prescribe the express findings on which the court or administrative authority shall base the advance authorization; to provide for the effects of transfer of structured settlement payment rights; to provide that the structured settlement obligor and the annuity issuer have no liability for the transferred payments as to all parties except the transferee; to provide the circumstances when the transferee will be liable to the structured settlement obligor and the annuity issuer; to provide that the structured settlement obligor and the annuity issuer may not be required to divide periodic payments between the payee and transferee; to prescribe the procedure for approval of transfers of structured settlement payment rights; to provide where an application for approval of a transfer of structured settlement payment rights may be brought; to require the transferee to file with the court or administrative authority and serve all interested parties with a notice of the proposed transfer and application not less than 20 days prior to the hearing; to provide what shall be set forth and provided with the notice; to provide that the provisions of this act may not be waived by a payee; to provide that a transfer agreement entered into on or after the effective date of this act by a payee who resides in this state shall provide that disputes under the transfer agreement shall be governed by the laws of this state; to provide the procedures the transferee shall establish and maintain to allow payments of structured settlement payment rights that are life-contingent; to protect a payee from liability to a proposed transferee or assignee based on any failure of the transfer to satisfy the conditions of this act; to prohibit transfers in contravention of any law; to not imply that any transfer under a transfer agreement prior to the effective date of this act is valid or invalid; to provide that certain compliance requirements and the fulfillment of certain conditions in this act are the responsibility of the transferee and not the structured settlement obligor or the annuity issuer; to provide that nothing in the act shall require or allow the disclosure of the terms of a confidential settlement; and to provide for an effective date of this act. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. This act shall be known and referred to as the “Structured Settlement Protection Act.” Section 2. As used in this act the following words and terms shall have the following meanings: (1) ANNUITY ISSUER. An insurer that has issued a contract to fund periodic payments under a structured settlement. (2) DEPENDENTS. A payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. (3) DISCOUNTED PRESENT VALUE. The present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (4) GROSS ADVANCE AMOUNT. The sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. (5) INDEPENDENT PROFESSIONAL ADVICE. Advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (6) INTERESTED PARTIES. With respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. (7) NET ADVANCE AMOUNT. The gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Section 3(e) of this act. (8) PAYEE. An individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. (9) PERIODIC PAYMENTS. Includes both recurring payments and scheduled future lump sum payments. (10) QUALIFIED ASSIGNMENT AGREEMENT. An agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. (11) RESPONSIBLE ADMINISTRATIVE AUTHORITY. With respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (12) SETTLED CLAIM. The original tort claim resolved by a structured settlement. (13) STRUCTURED SETTLEMENT. An arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (14) STRUCTURED SETTLEMENT AGREEMENT. The agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) STRUCTURED SETTLEMENT OBLIGOR. With respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) STRUCTURED SETTLEMENT PAYMENT RIGHTS. Rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: a. The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state. b. The structured settlement agreement was approved by a court or responsible administrative authority in this state. c. The structured settlement agreement is expressly governed by the laws of this state. (17) TERMS OF THE STRUCTURED SETTLEMENT. Include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. (18) TRANSFER. Any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a security agreement entered into with a bank or other insured depository institution or a subsidiary or affiliate of a bank or other insured depository institution (“secured party”) until and unless the secured party redirects the structured settlement payments to such secured party, or an agent or successor in interest thereof, or otherwise enforces the security interest against the structured settlement payment rights. (19) TRANSFER AGREEMENT. The agreement providing for a transfer of structured settlement payment rights. (20) TRANSFER EXPENSES. All expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; the term does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (21) TRANSFEREE. A party acquiring or proposing to acquire structured settlement payment rights through a transfer; provided that the term does not include a secured party who has not received a transfer of the structured settlement payment rights as the term “transfer” is defined in subdivision (18). Section 3. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth all of the following: (1) The amounts and due dates of the structured settlement payments to be transferred. (2) The aggregate amount of the payments. (3) The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the applicable federal rate used in calculating the discounted present value. (4) The gross advance amount. (5) An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of the fees and disbursements. (6) The net advance amount. (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee. (8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Section 4. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or responsible administrative authority determined after a factual hearing that include all of the following: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing. (3) The transfer does not contravene any applicable law statute or the order of any court or other government authority. Section 5. (a) Following a transfer of structured settlement payment rights under this act: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer in the following cases: a. If the transfer contravenes the terms of the structured settlement, for any federal or state income taxes, interest, fees, and penalties incurred by the parties, including the annuity issuer and structured settlement obligor, as a consequence of the transfer. b. For any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by the parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this act. (b) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees. (c) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this act. Section 6. (a) An application under this act for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. (b) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 4 of this act, the transferee shall file with the court or responsible administrative authority a notice of the proposed transfer and the application for its authorization. Such notice and application shall include all of the following: (1) A copy of the transferee’s application. (2) A copy of the transfer agreement. (3) A copy of the disclosure statement required under Section 3 of this act. (4) A listing of each of the payee’s dependents, together with each dependent’s age. (5) Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting a written response to the court or responsible administrative authority or by participating in the hearing. (6) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than 15 days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. (c) The notice and application required by Section 6(b) above shall be served on all interested parties in the manner provided by the Alabama Rules of Civil Procedure for the service of process. Section 7. (a) The provisions of this act may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this act by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. Such a transfer agreement shall not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (i) periodically confirming the payee’s survival, and (ii) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this act. (e) Nothing contained in this act shall be constructed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this act is valid or invalid. (f) Compliance with the requirements set forth in Section 3 of this act and fulfillment of the conditions set forth in Section 4 of this act shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. Section 8. This act shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the 30th day after the effective date of this act; provided, however, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to such date is either effective or ineffective. Section 9. Nothing in this act shall be construed to apply to any settlement under the Alabama Workers’ Compensation Law. Section 10. Nothing in this act is intended to, or shall, require or allow the disclosure, publication, or dissemination of the terms of a settlement which is confidential, whether the confidentiality is created by agreement of the parties or by order of the court, or by both. Section 11. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law. *This opportunity is not currently offered to persons residing in North Carolina.

Alaska

The Alaska Structured Settlement Protection Statute House Bill No. 64 AK Statute §§ 09.68.200–09.68.230 “An Act relating to court approval of the purchase of structured settlements.” TEXT: BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. AS 09.68 is amended by adding new sections to read: Sec. 09.68.200. Conditions to transfers of structured settlement payment rights and structured settlement agreements. (a) A transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been approved by a superior court based on the court’s written express findings that (1) the structured settlement arose from an action filed in Alaska or that could have been filed in Alaska, or the payee of the structured settlement is domiciled in Alaska; (2) the transfer complies with the requirements of AS 09.68.200 – 09.68.230, other applicable state and federal law, and the orders of any court; (3) not less than 10 days before the date on which the payee first incurred an obligation with respect to the transfer, the payee has received by certified mail, return receipt requested, or other means that provide a comparable record of delivery, a disclosure statement in bold type, no smaller than 14 points, specifying (A) the amounts and due dates of the structured settlement payments to be transferred; (B) the aggregate amount of the payments; (C) the discounted present value of the payments, together with the discount rate used in determining the discounted present value; (D) the gross amount payable to the payee in exchange for the payments; (E) an itemized listing of all broker’s commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (F) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in (E) of this paragraph; (G) the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments; and (H) the amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee; (4) the payee has established that the transfer is in the best interests of the payee and the payee’s dependents; (5) the payee has received independent professional advice regarding the legal, tax, and financial implications of the transfer; (6) the transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court; and (7) the transfer agreement provides that any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement; the transfer agreement must also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in this state. (b) If the transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court may grant, deny, or impose conditions upon the proposed transfer as the court considers just and proper under the facts and circumstances in accordance with established principles of law. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney fees arising from compliance by the issuer or obligor with the order of the court. (c) A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. Sec. 09.68.210. Jurisdiction; procedure for approval of transfers. (a) The superior court where the action giving rise to the structured settlement was maintained or could have been maintained or where the payee is domiciled has jurisdiction over an application for approval under AS 09.68.200 of a transfer of structured settlement payment rights. (b) Not less than 30 days before the scheduled hearing on an application for authorization of a transfer of structured settlement payment rights under AS 09.68.200, the transferee shall file with the court and serve on any other government authority that previously approved the structured settlement and all interested parties a notice of the proposed transfer and the application for its authorization. The notice must include (1) a copy of the transferee’s application to the court; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under AS 09.68.200; (4) notification that an interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (5) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed in order to be considered by the court. (c) Written responses to the application must be filed within 15 days after service of the transferee’s notice. Sec. 09.68.220. No waiver and no penalty. (a) The provisions of AS 09.68.200 – 09.68.230 may not be waived. (b) A payee who proposes to make a transfer of structured settlement payment rights may not incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee based on the failure of the transfer to satisfy the conditions of AS 09.68.200 – 09.68.230. Sec. 09.68.230. Definitions. In AS 09.68.200 – 09.68.230, (1) “annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement; (2) “dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including spousal maintenance; (3) “discounted present value” means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (4) “independent professional advice” means advice of an attorney, certified public accountant, actuary, or other professional adviser (A) who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; (B) who is not in any manner affiliated with or compensated by the transferee of the transfer; and (C) whose compensation for providing the advice is not affected by whether a transfer occurs or does not occur; (5) “interested parties” means the payee, a beneficiary designated under the annuity contract to receive payments following the payee’s death or, if the designated beneficiary is a minor, the designated beneficiary’s parent or guardian, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement; (6) “payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement; (7) “qualified assignment agreement” means an agreement providing for a qualified assignment as provided by 26 U.S.C. 130 (United States Internal Revenue Code), as amended through December 31, 1998; (8) “settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement; (9) “structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (10) “structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments; (11) “structured settlement obligor” means the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (12) “structured settlement payment rights” means rights to receive periodic payments, including lump-sum payments, under a structured settlement, whether from the settlement obligor or the annuity issuer, where (A) the payee or any other interested party is domiciled in the state; (B) the structured settlement agreement was approved by a court in the state; or (C) the settled claim was pending before the courts of this state when the parties entered into the structured settlement agreement; (13) “terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and an order or approval of a court, responsible administrative authority, or other government authority authorizing or approving the structured settlement; (14) “transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration; (15) “transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; (16) “transferee” means a person who is receiving or will receive structured settlement payment rights resulting from a transfer. Text: BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. AS 09.68 is amended by adding new sections to read: Sec. 09.68.200. Conditions to transfers of structured settlement payment rights and structured settlement agreements. (a) A transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been approved by a superior court based on the court’s written express findings that (1) the structured settlement arose from an action filed in Alaska or that could have been filed in Alaska, or the payee of the structured settlement is domiciled in Alaska; (2) the transfer complies with the requirements of AS 09.68.200 – 09.68.230, other applicable state and federal law, and the orders of any court; (3) not less than 10 days before the date on which the payee first incurred an obligation with respect to the transfer, the payee has received by certified mail, return receipt requested, or other means that provide a corparable record of delivery, a disclosure statement in bold type, no smaller than 14 points, specifying (A) the amounts and due dates of the structured settlement payments to be transferred; (B) the aggregate amount of the payments; (C) the discounted present value of the payments, together with the discount rate used in determining the discounted present value; (D) the gross amount payable to the payee in exchange for the payments; (E) an itemized listing of all broker’s commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee. (F) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in (E) of this paragraph; (G) the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments; and (H) the amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee; (4) the payee has established that the transfer is in the best interests of the payee and the payee’s dependents; (5) the payee has received independent professional advice regarding the legal, tax, and financial implications of the transfer; (6) the transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court; and (7) the transfer agreement provides that any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement; the transfer agreement must also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in this state. (b) If the transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court may grant, deny, or impose conditions upon the proposed transfer as the court considers just and proper under the facts and circumstances in accordance with established principles of law. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney fees arising from compliance by the issuer or obligor with the order of the court. (c) A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. Sec. 09.68.210. Jurisdiction; procedure for approval of transfers. (a) The superior court where the action giving rise to the structured settlement was maintained or could have been maintained or where the payee is domiciled has jurisdiction over an application for approval under AS 09.68.200 of a transfer of structured settlement payment rights. (b) Not less than 30 days before the scheduled hearing on an application for authorization of a transfer of structured settlement payment rights under AS 09.68.200, the transferee shall file with the court and serve on any other government authority that previously approved the structured settlement and all interested parties a notice of the proposed transfer and the application for its authorization. The notice must include (1) a copy of the transferee’s application to the court; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under AS 09.68.200; (4) notification that an interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (5) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed in order to be considered by the court. (c) Written responses to the application must be filed within 15 days after service of the transferee’s notice. Sec. 09.68.220. No waiver and no penalty. (a) The provisions of AS 09.68.200 – 09.68.230 may not be waived. (b) A payee who proposes to make a transfer of structured settlement payment rights may not incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee based on the failure of the transfer to satisfy the conditions of AS 09.68.200 – 09.68.230. Sec. 09.68.230. Definitions. In AS 09.68.200 – 09.68.230, (1) “annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement; (2) “dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including spousal maintenance; (3) “discounted present value” means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (4) “independent professional advice” means advice of an attorney, certified public accountant, actuary, or other professional adviser (A) who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; (B) who is not in any manner affiliated with or compensated by the transferee of the transfer; and (C) whose compensation for providing the advice is not affected by whether a transfer occurs or does not occur; (5) “interested parties” means the payee, a beneficiary designated under the annuity contract to receive payments following the payee’s death or, if the designated beneficiary is a minor, the designated beneficiary’s parent or guardian, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement; (6) “payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement; (7) “qualified assignment agreement” means an agreement providing for a qualified assignment as provided by 26 U.S.C. 130 (United States Internal Revenue Code), as amended through December 31, 1998; (8) “settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement; (9) “structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (10) “structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments; (11) “structured settlement obligor” means the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (12) “structured settlement payment rights” means rights to receive periodic payments, including lump-sum payments, under a structured settlement, whether from the settlement obligor or the annuity issuer, where (A) the payee or any other interested party is domiciled in the state; (B) the structured settlement agreement was approved by a court in the state; or (C) the settled claim was pending before the courts of this state when the parties entered into the structured settlement agreement; (13) “terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and an order or approval of a court, responsible administrative authority, or other government authority authorizing or approving the structured settlement; (14) “transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration; (15) “transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; (16) “transferee” means a person who is receiving or will receive structured settlement payment rights resulting from a transfer. *This opportunity is not currently offered to persons residing in North Carolina

Arizona

The Arizona Structured Settlement Protection Statute Arizona Revised Statutes Annotated Title 12. Courts And Civil Proceedings Chapter 20 Article 1. General Provisions AZ Revised Statute Ann §§ 12-2901–12-2904 § 12-2901. Definitions In this chapter, unless the context otherwise requires: 1. “Annuity issuer” means an insurer that has issued a contract that is used to fund periodic payments under a structured settlement. 2. “Dependents” includes a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony. 3. “Discounted present value” means the present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. 4. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. 5. “Independent professional advice” means the advice of an attorney, certified public accountant, actuary or other licensed professional adviser. 6. “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor and any other party that has continuing rights or obligations under the structured settlement. 7. “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under this chapter. 8. “Payee” means an individual who receives tax-free damage payments under a structured settlement and who proposes to make a transfer of payment rights under the structured settlement. 9. “Periodic payments” includes both recurring payments and scheduled future lump sum payments. 10. “Qualified assignment agreement” means an agreement that provides for a qualified assignment within the meaning of § 130 of the Internal Revenue Code as defined by § 42-1001. 11. “Responsible administrative authority” means, with respect to a structured settlement, any government authority that is vested by law with exclusive jurisdiction over the settled claim that is resolved by the structured settlement. 12. “Settled claim” means the original tort claim or workers’ compensation claim that is resolved by a structured settlement. 13. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness that is established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. 14. “Structured settlement agreement” means the agreement, judgment, stipulation or release that embodies the terms of a structured settlement. 15. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. 16. “Structured settlement payment rights” means the right to receive periodic payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if any of the following apply: (a) The payee, the structured settlement obligor, the annuity issuer or any other interested party is domiciled in this State. (b) The structured settlement agreement was approved by a court or responsible administrative authority in this State. (c) The laws of this state expressly govern the structured settlement agreement. 17. “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. 18. “Transfer” means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance of structured settlement payment rights. Transfer does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce the blanket security interest against the structured settlement payment rights. 19. “Transfer agreement” means the agreement that provides for transfer of structured settlement payment rights from a payee to a transferee. 20. “Transfer expenses” means all expenses of a transfer required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions and other payments to a broker or other intermediary. Transfer expenses does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 21. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Arizona Revised Statutes Annotated Currentness § 12-2902. Payment rights; transfer conditions A. Direct or indirect transfer of structured settlement payment rights shall not be effective and a structured settlement obligor or annuity issuer shall not be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or responsible administrative authority. B. Before issuing a final order pursuant to subsection A, the court or responsible administrative authority shall expressly find that: 1. The transfer complies with the requirements of this Chapter and will not contravene any other applicable law. 2. Not less than three days before the date on which the payee signed the transfer agreement, the transferee provided to the payee a disclosure statement in bold type, no smaller than fourteen points, setting forth: (a) The amounts and due dates of the structured settlement payments to be transferred. (b) The aggregate amount of the payments. (c) The discounted present value of the payments to be transferred, which shall be identified as the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities, and the amount of the applicable federal rate used in calculating the discounted present value. (d) The gross advance amount that is payable to the payee in exchange for the payments. (e) An itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of attorney fees and related disbursements. (f) The net advance amount that is payable to the payee after deduction of all commissions, fees, costs, expenses and charges listed in subdivision (e) of this paragraph. (g) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. (h) The amount of any penalty and the aggregate amount of any liquidated damages inclusive of penalties that are payable by the payee in the event of any breach of the transfer agreement by the payee. 3. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. 4. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing. 5. If the transfer would contravene any applicable statute or the order of any court or other government authority. C. Following a transfer of structured settlement payment rights under this chapter: 1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. 2. The transferee shall be liable to the structured settlement obligor and the annuity issuer: (a) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer. (b) For any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this act. CREDIT(S) Added by Laws 2002, Ch. 239, § 1. HISTORICAL AND STATUTORY NOTES Laws 2002, Ch. 239, § 3, provides: “Sec. 3. Applicability “Title 12, chapter 20, Arizona Revised Statutes, as added by this act, applies to any transfer of structured settlement payment rights under a transfer agreement that is entered into on or after the effective date of this act, except that this act shall not imply that any transfer under a transfer agreement that is reached before the effective date of this act is effective.” § 12-2903. Jurisdiction: transfer approval A. The superior court has jurisdiction over any application for authorization to transfer structured settlement payment rights pursuant to § 12-2902. B. Not less than twenty days before the scheduled hearing on any application for authorization to transfer structured settlement payment rights, the transferee shall file with the court a notice of the proposed transfer and the application for its authorization and shall serve a copy of the notice on any other government authority that previously approved the structured settlement, on all interested parties. The notice shall include: 1. A copy of the transferee’s application. 2. A copy of the transfer agreement. 3. A copy of the disclosure statement required under § 12-2902. 4. A listing of each of the payee’s dependents, together with each dependent’s age. 5. A statement that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or other responsible administrative authority or by participating in the hearing. 6. The time and place of the hearing and the manner in which and the time by which written responses to the application must be filed in order to be considered by the court or responsible administrative authority. An interested party shall have at least fifteen days after service of the transferee’s notice in which to respond. Arizona Revised Statutes Annotated Currentness § 12-2904. Waiver; penalties A. The provisions of this chapter shall not be waived. B. A payee who proposes to make a transfer of structured settlement payment rights shall not inure any penalty, forfeit any application fee or other payment or otherwise incur any liability to the proposed transferee based on any failure of the transfer to satisfy the conditions specified in § 12- 2902. C. Any transfer agreement entered into on or after the effective date of this section by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. A transfer agreement shall not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. D. A transfer of structured settlement payment rights shall not extend to any payments that are life contingent unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for both of the following: 1. Periodically confirming the payee’s survival. 2. Giving the annuity issuer and the structured settlement obligor prompt written notice if the payee dies. E. Compliance with the requirements and fulfillment of the conditions set forth in this chapter is the sole responsibility of the transferee in any transfer of structured settlement payment rights, and the structured settlement obligor or the annuity issuer is not responsible for, or any liability arising from, noncompliance with the requirements or failure to fulfill the requirements of this chapter. *This opportunity is not currently offered to persons residing in North Carolina.

Arkansas

The Arkansas Structured Settlement Protection Statute House Bill No. 2614 AN ACT concerning structured settlement protection; and for other purposes. Effective 8/13/05 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. Arkansas Code Title 23, Chapter 81, is amended to add an additional subchapter to read as follows: 23-81-701. Title. This subchapter shall be known and may be cited as the “Structured Settlement Protection Act”. 23-81-702. Definitions. As used in this subchapter: (1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement; (2) “Dependents” includes a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony; (3) “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the Internal Revenue Service; (4) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions are made from the consideration; (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser; (6) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement; (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under § 23-81-703(5); (8) “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement; (9) “Periodic payments” includes both recurring payments and scheduled future lump sum payments; (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code of 1986, as in existence on January 1, 2005; (11) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement; (12) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement; (13) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (14) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement; (15) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (16) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, when: (A) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; (B) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (C) The structured settlement agreement is expressly governed by the laws of this state; (17) “Terms of the structured settlement” includes, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement; (18)(A) “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. (B) However, “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution or an agent or successor in interest, or otherwise to enforce the blanket security interest against the structured settlement payment rights; (19) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights; (20)(A) “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. (B) “Transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer; and (21) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 23-81-703. Required disclosures to payee. Not less than three (3) days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement in bold type no smaller than fourteen (14) points, setting forth: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of the payments; (3) The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the applicable federal rate used in calculating the discounted present value; (4) The gross advance amount; (5) An itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (6) The net advance amount; (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 23-81-704. Approval of transfers of structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or responsible administrative authority that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and (3) The transfer does not contravene any applicable statute or the order of any court or other government authority. 23-81-705. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this subchapter: (1) The structured settlement obligor and the annuity issuer shall be discharged and released from any and all liability for the transferred payments as to all parties except the transferee; (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (B) For any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by the parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this subchapter; (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two (2) or more transferees or assignees; and (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this subchapter. 23-81-706. Procedure for approval of transfers. (a) An application under this subchapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. (b) Not less than twenty (20) days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under § 23-83-704, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with the notice: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under § 23-83-703; (4) A listing of each of the payee’s dependents and each dependent’s age; (5) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6)(A) Notification of: (i) The time and place of the hearing; and (ii) The manner in which and the time by which written responses to the application must be filed in order to be considered by the court or responsible administrative authority. (B) The time by which written responses to the application must be filed shall be not less than twenty (20) days after service of the transferee’s notice. 23-81-707. General provisions — Construction. (a) The provisions of this subchapter may not be waived by any payee. (b)(1) Any transfer agreement entered into on or after the effective date of this subchapter by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of the State of Arkansas. (2) No transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) Periodically confirming the payee’s survival; and (2) Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this subchapter. (e) Nothing contained in this subchapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this subchapter is valid or invalid. (f) Compliance with the requirements set forth in § 23-83-703 and fulfillment of the conditions set forth in § 23-83-704 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. *This opportunity is not currently offered to persons residing in North Carolina.

California

The California Structured Settlement Protection Statute 10134. For the purposes of this article, the following terms have the following meanings: (a) “Buyer’s first right of refusal” means any provision in the transfer agreement or related documents that obligate the payee to give to the buyer the first choice or option to purchase any remaining structured settlement rights belonging to the payee. (b) “Dependents” include the payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony. (c) “Discounted present value” means the fair present value of future payments, as determined by discounting those payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (d) “Effective equivalent interest rate,” with respect to a transfer of structured settlement payment rights, means the annualized rate of interest on the net advance amount, calculated by treating the transferred structured settlement payments as if they were installment payments on a loan, with each payment applied first to accrued unpaid interest and then to principal. (e) “Expenses” means all broker’s commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, and charges that a payee would have to pay to transfer the structured settlement payment rights of a structured settlement agreement or that would be deducted from the gross consideration that would be paid to the payee in connection with the transfer of the structured settlement payment rights of a structured settlement agreement. (f) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser meeting all of the following requirements: (1) The adviser is engaged by a claimant or payee to render advice concerning the legal, tax, or financial implications of a structured settlement or a transfer of structured settlement payment rights. (2) The adviser’s compensation for rendering independent professional advice is not affected by occurrence or lack of occurrence of a settlement or transfer. (3) A particular adviser is not referred to the payee by the transferee or its agent, except that the transferee may refer the payee to a lawyer referral service or agency operated by a state or local bar association. (g) “Interested parties” means, with respect to a structured settlement agreement, the payee, the payee’s attorney, any beneficiary designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party who has continuing rights or obligations under the structured settlement agreement. If the designated beneficiary is a minor, the beneficiary’s parent or guardian shall be an interested party. (h) “Payee” means an individual who received tax-free payments pursuant to a structured settlement agreement. (i) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of Title 26 of the United States Code, as amended from time to time. (j) “Structured settlement agreement” means an arrangement for periodic payment of damages established by settlement or judgment in resolution of a tort claim in which the payment of the judgment or award is paid in whole, or in part, in periodic tax-free payments rather than a lump-sum payment. A structured settlement agreement entered into pursuant to Section 667.7 of the Code of Civil Procedure or Section 970.6 or 984 of the Government Code is not subject to the provisions of this article other than the requirements of Section 10138. (k) “Structured settlement obligor” means the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. (l) “Structured settlement payment rights” means rights to receive periodic payments, including lump-sum payments, pursuant to a structured settlement agreement, whether from the settlement obligor or an annuity issuer. (m) “Terms of the structured settlement” include, with respect to a structured settlement agreement, the terms of the structured settlement agreement, annuity contract, qualified assignment agreement, and any order or approval of a court or responsible administrative authority or other governmental authority authorizing or approving the structured settlement. (n) “Transfer” means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration. (o) “Transfer agreement” means the agreement providing for the transfer, and any other document used to effectuate the transfer, from the payee to the transferee of structured settlement payment rights of a structured settlement agreement. (p) “Transferee” means any person receiving structured settlement payment rights resulting from a transfer. 10135. (a) This article is only applicable to transfers entered into on or after January 1, 2000. (b) Notwithstanding subdivision (a), the changes to this article made by the act amending this section in the 2001-02 Regular Session shall only be applicable to transfers entered into on or after January 1, 2002. 10136. (a) No transfer of structured settlement payment rights, either directly or indirectly, shall be effective by a payee domiciled in this state, or by a payee entitled to receive payments under a structured settlement funded by an insurance contract issued by an insurer domiciled in this state or owned by an insurer or corporation domiciled in this state, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the provisions of this section are satisfied. (b) Ten or more days before the payee executes a transfer agreement, the transferee shall provide the payee with a separate written disclosure statement, accurately completed with the information that applies to the transfer agreement, in substantially the following form, in at least 12-point type unless otherwise indicated (bracketed instructions shall not appear in the form): “Disclosure Notice Required By Law (14-point boldface type ) You are selling (technically called “transferring”) your right to receive your payments under a structured settlement. You should get this disclosure notice at least 10 days before you sign any contract. IMPORTANT TERMS: (14-point boldface type ) Total dollar amount of payments you are Selling: Present value of amount you are selling: Not amount paid to you: For comparison purposes: If you did not sell your right to receive structured settlement payments, but instead borrowed the net amount of $____ and paid that loan back in installments with each of the payments you are now selling, the equivalent interest rate you would be paying for that loan would be ____% per year. (The text and information set forth above under “IMPORTANT TERMS” shall be in 14-point type and circumscribed by a box with a bold border ) To figure the net amount we are paying, we have charged you for the following expenses: (itemize in a list by type and amount) for a total of $____ in expenses. You should get independent professional advice about whether selling your structured settlement payments is a good idea for you and for your dependents. You also should get independent professional advice from an accountant or lawyer experienced in tax matters about any income tax consequences from selling your structured settlement payments. We cannot give you the name of anyone to advise you. Court approval is needed (14-point boldface type). A court must approve any agreement you sign to sell your rights under a structured settlement. You will not receive any money until the court approves the sale. Court approval could take more than 30 days following the day you sign an agreement selling your rights under a structured settlement. You may cancel the contract before court approval (14-point boldface type). You may cancel the agreement selling (or transferring) your rights under a structured settlement without any cost or obligation. You may cancel at any time before the court approves the contract. You will get notice of the date of the court hearing. If you want to cancel, you do not need any special form. But, you must cancel in writing. Send your cancellation to: (insert transferee’s name and address). If you believe that you have been treated unfairly or have been misled, you should contact your local district attorney or the state Attorney General.” (c) The transfer agreement shall be written in at least 12-point type and shall be complete and without blank spaces to be completed after the payee’s signature. The transfer agreement shall set forth clear and conspicuously, and in no less than 12-point type, all of the following: (1) A statement that the agreement is not effective until the date on which a court enters a final order approving the transfer agreement and that payment to the payee pursuant to the transfer agreement will be delayed up to 30 days or more after the date the payee signed the transfer agreement in order for the court to review and approve the transfer agreement. (2) The amounts and due dates of the structured settlement payments to be transferred. (3) The aggregate amount of the structured settlement payments to be transferred. This amount shall be disclosed in the form prescribed in subdivision (b) in the space for”Total dollar amount of payments you are selling.” (4) The aggregate amount of all expenses, if any, to be deducted from the purchase price to be paid to the payee in exchange for the payments to be transferred, and an itemization of all expenses by type and amount. (5) The amount payable to the payee, net of all expenses, in exchange for the payments to be transferred. This amount shall be disclosed in the form prescribed in subdivision (b) in the spaces for” Net amount paid to you” and “net amount.” (6) The discounted present value of all structured settlement payments to be transferred and a statement that “This is the value of your structured settlement in current dollars.” This amount shall be disclosed in the form prescribed in subdivision (b) in the space for”Present value of the amount you are selling.” (7) The federal rate, as described in subdivision (c) of Section 10134, used in determining the discounted present value. (8) The effective equivalent interest rate, which shall be disclosed in the following statement: “YOU WILL BE PAYING THE EQUIVALENT OF AN INTEREST RATE OF ____% PER YEAR. Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are transferring to us, if the transferred structured settlement payments were installment payments on a loan, with each payment applied first to accrued unpaid interest and then to principal, it would be as if you were paying interest to us of ____% per year, assuming funding on the effective date of transfer.” This percentage amount shall be disclosed in the form prescribed in subdivision (b) in the space for “the equivalent interest rate you would be paying for this loan would be ____% per year.” (9) The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments. (10) A statement that the payee should obtain independent professional advice regarding any federal and state income tax consequences arising from the proposed transfer, and that the transferee may not refer the payee to any specific adviser for that purpose. (11) A statement that the court approving the transfer agreement retains continuing jurisdiction to interpret and monitor implementation of the agreement as justice may require. (12) The following statement: “If you believe you were treated unfairly or were misled as to the nature of the obligations you assumed upon entering into this agreement, you should report those circumstances to your local district attorney or the office of the Attorney General.” (13) The following statement printed in 14-point type, circumscribed by a box with a bold border, and set forth immediately above or adjacent to the space reserved for the payee’s signature: “You have the right to cancel this agreement without any cost or obligation until the date the court approves this agreement. You will receive notice of the court hearing date when approval may occur. You must cancel in writing and send your cancellation to (insert transferee’s name and address).” (d) The contract for transferring the structured settlement payment rights may not violate Section 10138. (e) At any time before the date on which a court enters a final order approving the transfer agreement pursuant to Section 10139.5, the payee may cancel the transfer agreement, without cost or further obligation, by providing written notice of cancellation to the transferee. 10137. A transfer of structured settlement payment rights is void unless all of the following conditions are met: (a) The transfer of the structured settlement payment rights is fair and reasonable and in the best interest of the payee, taking into account the welfare and support of his or her dependents. (b) The transfer complies with the requirements of this article, will not contravene other applicable law, and is approved by a court as provided in Section 10139.5. 10138. (a) A transfer agreement, as defined in subdivision (o) of Section 10134, shall not include any provision described in the paragraphs below. Any inclusion of a prohibited provision, with respect to a seller who is a California resident, shall make the contract void and unenforceable. (1) Any provision that waives the seller’s right to sue under any law, or in which the seller agrees not to sue, or that waives jurisdiction or standing to sue under the contract. (2) Any provision that requires the seller to indemnify and hold harmless the buyer, or to pay the buyer’s costs of defense, in any claim or action brought by the seller or on the seller’s behalf contesting the sale for any reason. (3) Any provision that waives benefits or rights conferred by law with respect to garnishment of wages. (4) Any provision providing that the contract is confidential or proprietary, belonging to the buyer. (5) Any provision in which the seller stipulates to a confession of judgment. (6) Any provision requiring the seller to pay the buyer’s attorney’s fees and costs if the purchase agreement is not completed. (7) Any provision requiring the seller to pay any tax liability arising under the federal tax laws, other than the seller’s own tax liability, if any, that results from the transfer. (8) Any provision providing for brokerage fees incurred in the contract to be deducted from the purchase price disclosed pursuant to paragraph (5) of subdivision (b) of Section 10136. (9) Any forum selection provision providing for jurisdiction to be in a court outside of California for any action arising under the contract. (10) Any choice-of-law provision that provides for controlling law to be other than California law in any action arising under the contract. (11) A provision that provides the transferee with a security interest or collateral interest in any structured settlement payment rights that exceed the actual dollar amount of the structured settlement payment rights being transferred. (12) Any provision that creates a “buyer’s first right of refusal” to purchase any remaining structured payment rights that the payee may desire to sell in the future. (b) The provisions in this section may not be waived by agreement of the parties. 10139. (a) At the time of filing a petition pursuant to Section 10139.5 for court approval, the transferee shall file with the Attorney General a copy of the transferee’s petition for approval, a copy of the written disclosure statement required by subdivision (a) of Section 10136, a copy of the transfer agreement as defined in subdivision (o) of Section 10134, a copy of the annuity contract, a copy of any qualified assignment agreement, a copy of the underlying structured settlement agreement, a copy of any order or approval of any court or responsible administrative authority authorizing or approving the structured settlement, a copy and proof of notice to the interested parties, and a verified statement from the transferee stating that all of the conditions set forth in Sections 10136, 10137, and 10138 have been met. (b) The Attorney General may, but is not required to, review any transfer agreement in order to ensure that the transfer meets the requirements of this article. (c) The Attorney General may charge a reasonable fee for the filing of the transfer agreement as provided in this section. The fee shall be paid by the transferee. (d) This section does not apply to a transfer by a payee who is not a resident of California at the time the payee executes the transfer agreement. 10139.1. Any subsequent transfer of any additional structured settlement payments between the payee and transferee may be made only after compliance with all of the requirements of this article. 10139.2. Any notice required by this article shall be deemed to have been given if addressed to the recipient’s last known address and deposited, first class postage paid, in the United States mail not less than five calendar days prior to the date on which notice is required. 10139.3. (a) None of the provisions of this article may be waived. (b) Compliance with the requirements set forth in Sections 10136, 10137, and 10138 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights. (c) A payee who proposes to make a transfer of structured settlement payment rights shall not incur any penalty, shall not forfeit any application fee or other payment, and shall not otherwise incur any liability to the proposed transferee based on any failure of that transfer to satisfy the requirements of Sections 10136, 10137, and 10138. (d) The transferee and any assignee shall be liable to the structured settlement obligor and the annuity issuer for any and all taxes incurred as a consequence of the transfer or as a consequence of any failure of the transferee or assignee to comply with this article or the terms of the structured settlement agreement. (e) Neither the annuity issuer nor the structured settlement obligor may be required to divide any structured settlement payment between the payee and any transferee or assignee or between two or more transferees or assignees. 10139.4. A violation of this article by a transferee shall constitute an unfair business practice pursuant to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code and shall be subject to the penalties and other remedies of that chapter. 10139.5. (a) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express written findings by the court that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received that advice or knowingly waived that advice in writing. (3) The transferee has provided the payee with a disclosure form that complies with Section 10136 and the transfer agreement complies with Sections 10136 and 10138. (4) The transfer does not contravene any applicable statute or the order of any court or other government authority. (5) The payee reasonably understands the terms of the transfer agreement, including the terms set forth in the disclosure statement required by Section 10136. (6) The payee reasonably understands and does not wish to exercise the payee’s right to cancel the transfer agreement. (b) Following a transfer of structured settlement payment rights under this article: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer if the transfer contravenes the terms of the structured settlement for the following: (A) Any taxes incurred by those parties as a consequence of the transfer. (B) Any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by those parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this article. (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two, or more, transferees or assignees. (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this article. (c) (1) An application under this article for approval of a transfer of structured settlement payment rights shall be made by the transferee and brought in the county in which the payee resides. (2) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under this article, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, and shall include the following with that notice: (A) A copy of the transferee’s application. (B) A copy of the transfer agreement. (C) A listing of each of the payee’s dependents, together with each dependent’s age. (D) A copy of the disclosure required in subdivision (b) of Section 10136. (E) A copy of the annuity contract. (F) A copy of any qualified assignment agreement. (G) A copy of the underlying structured settlement agreement. (H) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing. (I) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which may not be less than 15 days after service of the transferee’s notice, in order to be considered by the court. (d) All court costs and filing fees shall be paid by the transferee. (e) No later than the time of filing the petition for court approval, the transferee shall advise the payee of the payee’s right to seek independent counsel and financial advice in connection with the transferee’s petition for court approval of the transfer agreement, and shall further advise the payee that if the payee retains counsel, a licensed certified public accountant, or a licensed actuary in connection with a petition for an order approving the transfer agreement, that the transferee shall pay the fees of the payee’s counsel, accountant, or actuary, regardless of whether the transfer agreement is approved, and regardless of whether the attorney, accountant, or actuary files any document or appears at the hearing on the application for transfer, in an aggregate amount not to exceed one thousand five hundred dollars ($1,500). The transferee’s accountant, counsel, or actuary may not advise the payee. (f) The court shall retain continuing jurisdiction to interpret and monitor the implementation of the transfer agreement as justice requires. *This opportunity is not currently offered to persons residing in North Carolina.

Colorado

Colorado senate bill 98 Category: structured settlement version date: April 20, 2004 synopsis: concerning the establishment of a “structured settlement protection act”. Text: be it enacted by the general assembly of the state of Colorado: section 1. Title 13, Colorado revised statutes, is amended by the addition of a new article to read: article 23 structured settlement protection act 13-23-101. Short title. This article shall be known and may be cited as the ” structured settlement protection act”. 13-23-102. Definitions. As used in this article, unless the context otherwise requires: (1) “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Dependent” means a payee’s spouse, minor child, or any person for whom the payee is legally obligated to provide support, including maintenance. (3) ” discounted present value ” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the united states internal revenue service. (4) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions are made from such consideration. (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (6) “interested parties” means the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party who has continuing rights or obligations under such structured settlement. If a delegate child support enforcement unit is enforcing a payee’s legal obligation to support his or her dependent children, pursuant to section 26-13-105, c.r.s., “interested parties” shall also include the delegate child support enforcement unit. (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 13-23-103. (8) “Payee” means an individual who is receiving tax-free payments under a structured settlement and who proposes to make a transfer of payment rights thereunder. (9) “Periodic payment” means a recurring payment or a scheduled future lump sum payment. (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the federal “internal revenue code of 1986″, as amended. (11) “Responsible administrative authority” means any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (12) ” Settled claim” means the original tort claim resolved by a structured settlement. (13) ” Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (14) ” Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) ” Structured settlement obligor” means the party who has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) ” structured settlement payment right” means the right to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (a) the payee is domiciled in Colorado, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is Colorado; or (b) the structured settlement agreement was approved by a court or responsible administrative authority in Colorado; or (c) the structured settlement agreement is expressly governed by the laws of Colorado. (17) “Terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and any order or other approval of a court or responsible administrative authority or other government authority that authorized or approved such structured settlement. (18) “transfer” means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of a structured settlement payment right made by a payee for consideration; except that the term “transfer” does not include the creation or perfection of a security interest in a structured settlement payment right under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. (19) “Transfer agreement” means the agreement providing for a transfer of a structured settlement payment right. (20) “Transferee” means a party acquiring or proposing to acquire a structured settlement payment right through a transfer. (21) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “Transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 13-23-103. required disclosures to payee. (1) not fewer than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: (a) the amounts and due dates of the structured settlement payments to be transferred; (b) the aggregate amount of such payments; (c) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities “, and the amount of the applicable federal rate used in calculating such discounted present value; (d) the gross advance amount; (e) an itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements, payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any attorney fees and related disbursements; (f) the net advance amount; (g) the amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee; and (h) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 13-23-104. Approval of transfers of structured settlement payment rights. (1) a direct or indirect transfer of a structured settlement payment right shall not be effective and a structured settlement obligor or annuity issuer shall not be required to make a payment directly or indirectly to a transferee of a structured settlement payment right unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (a) the transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents; (b) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly and willingly waived such advice in writing; and (c) the transfer does not contravene any applicable statute or the order of any court or other government authority. 13-23-105. Effect of transfer of structured settlement payment right. (1) following a transfer of a structured settlement payment right pursuant to this article: (a) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from all liability for the transferred payments; (b) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) for any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with the provisions of this article; (c) neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and a transferee or assignee or between two or more transferees or assignees; and (d) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this article. 13-23-106. Procedure for approval of transfer. (1) an application under this article for approval of a transfer of a structured settlement payment right shall be made by the transferee and may be brought: (a) in the district court for the county in which the payee resides; (b) in the district court for the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or (c) in any court or before any responsible administrative authority that approved the structured settlement agreement. (2) not fewer than twenty days prior to the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under section 13-23-104, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The transferee shall file and serve: (a) a copy of the transferee’s application; (b) a copy of the transfer agreement; (c) a copy of the disclosure statement required pursuant to section 13-23-103; (d) a listing of each of the payee’s dependents, together with each dependent’s age; (e) a notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) a notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not fewer than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. 13-23-107. General provisions – construction. (1) The provisions of this article may not be waived by any payee. (2) any transfer agreement entered into on or after July 1, 2004, by a payee who resides in Colorado shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of Colorado. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (3) a transfer of structured settlement payment rights shall not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of a structured settlement payment right shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on a failure of such transfer to satisfy the conditions of this article. (5) Nothing contained in this article shall be construed to authorize a transfer of a structured settlement payment right in contravention of any law or to imply that a transfer under a transfer agreement entered into prior to July 1, 2004, is valid or invalid. (6) compliance with the requirements set forth in section 13-23-103 and fulfillment of the conditions set forth in section 13-23-104 shall be solely the responsibility of the transferee in a transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. 13-23-108. Exceptions – judgment for periodic payment against a health care professional or institution – assignment of workers’ compensation benefits. Nothing in this article shall apply to a judgment entered pursuant to the provisions of part 2 of article 64 of this title or to compensation or benefits due under articles 40 to 47 of title 8, c.r.s. section 2. Effective date – applicability. This act shall take effect July 1, 2004, and shall apply to agreements to transfer a structured settlement payment right executed on or after said date. Section 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety. Be it enacted by the general assembly of the state of Colorado: section 1. Title 13, Colorado revised statutes, is amended by the addition of a new article to read: article 23 structured settlement protection act 13-23-101. Short title. This article shall be known and may be cited as the “structured settlement protection act”. 13-23-102. Definitions. As used in this article, unless the context otherwise requires: (1) “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Dependent” means a payee’s spouse, minor child, or any person for whom the payee is legally obligated to provide support, including maintenance. (3) ” discounted present value ” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the united states internal revenue service. (4) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions are made from such consideration. (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (6) “interested parties” means the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party who has continuing rights or obligations under such structured settlement. If a delegate child support enforcement unit is enforcing a payee’s legal obligation to support his or her dependent children, pursuant to section 26-13-105, c.r.s., “interested parties” shall also include the delegate child support enforcement unit. (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 13-23-103. (8) “Payee” means an individual who is receiving tax-free payments under a structured settlement and who proposes to make a transfer of payment rights thereunder. (9) “Periodic payment” means a recurring payment or a scheduled future lump sum payment. (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the federal “internal revenue code of 1986″, as amended. (11) “Responsible administrative authority” means any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (12) ” Settled claim” means the original tort claim resolved by a structured settlement. (13) ” Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (14) ” Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) ” Structured settlement obligor” means the party who has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) ” structured settlement payment right” means the right to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (a) the payee is domiciled in Colorado, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is Colorado; or (b) the structured settlement agreement was approved by a court or responsible administrative authority in Colorado; or (c) the structured settlement agreement is expressly governed by the laws of Colorado. (17) “Terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and any order or other approval of a court or responsible administrative authority or other government authority that authorized or approved such structured settlement. (18) “transfer” means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of a structured settlement payment right made by a payee for consideration; except that the term “transfer” does not include the creation or perfection of a security interest in a structured settlement payment right under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. (19) “Transfer agreement” means the agreement providing for a transfer of a structured settlement payment right. (20) “Transferee” means a party acquiring or proposing to acquire a structured settlement payment right through a transfer. (21) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “Transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 13-23-103. Required disclosures to payee. (1) not fewer than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: (a) the amounts and due dates of the structured settlement payments to be transferred; (b) the aggregate amount of such payments; (c) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities “, and the amount of the applicable federal rate used in calculating such discounted present value; (d) the gross advance amount; (e) an itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements, payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any attorney fees and related disbursements; (f) the net advance amount; (g) the amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee; and (h) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 13-23-104. Approval of transfers of structured settlement payment rights. (1) a direct or indirect transfer of a structured settlement payment right shall not be effective and a structured settlement obligor or annuity issuer shall not be required to make a payment directly or indirectly to a transferee of a structured settlement payment right unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (a) the transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents; (b) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly and willingly waived such advice in writing; and (c) the transfer does not contravene any applicable statute or the order of any court or other government authority. 13-23-105. Effect of transfer of structured settlement payment right. (1) following a transfer of a structured settlement payment right pursuant to this article: (a) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from all liability for the transferred payments; (b) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) for any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with the provisions of this article; (c) neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and a transferee or assignee or between two or more transferees or assignees; and (d) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this article. 13-23-106. Procedure for approval of transfer. (1) an application under this article for approval of a transfer of a structured settlement payment right shall be made by the transferee and may be brought: (a) in the district court for the county in which the payee resides; (b) in the district court for the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or (c) in any court or before any responsible administrative authority that approved the structured settlement agreement. (2) not fewer than twenty days prior to the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under section 13-23-104, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The transferee shall file and serve: (a) a copy of the transferee’s application; (b) a copy of the transfer agreement; (c) a copy of the disclosure statement required pursuant to section 13-23-103; (d) a listing of each of the payee’s dependents, together with each dependent’s age; (e) a notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) a notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not fewer than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. 13-23-107. General provisions – construction. (1) The provisions of this article may not be waived by any payee. (2) Any transfer agreement entered into on or after July 1, 2004, by a payee who resides in Colorado shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of Colorado. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (3) a transfer of structured settlement payment rights shall not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of a structured settlement payment right shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on a failure of such transfer to satisfy the conditions of this article. (5) Nothing contained in this article shall be construed to authorize a transfer of a structured settlement payment right in contravention of any law or to imply that a transfer under a transfer agreement entered into prior to July 1, 2004, is valid or invalid. (6) compliance with the requirements set forth in section 13-23-103 and fulfillment of the conditions set forth in section 13-23-104 shall be solely the responsibility of the transferee in a transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. 13-03-108. Exceptions – judgment for periodic payment against a health care professional or institution – assignment of workers’ compensation benefits. Nothing in this article shall apply to a judgment entered pursuant to the provisions of part 2 of article 64 of this title or to compensation or benefits due under articles 40 to 47 of title 8, c.r.s. section 2. Effective date – applicability. This act shall take effect July 1, 2004, and shall apply to agreements to transfer a structured settlement payment right executed on or after said date. Section 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety. Be it enacted by the general assembly of the state of Colorado: section 1. Title 13, Colorado revised statutes, is amended by the addition of a new article to read: article 23 structured settlement protection act 13-23-101. Short title. This article shall be known and may be cited as the “structured settlement protection act”. 13-23-102. Definitions. As used in this article, unless the context otherwise requires: (1) “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Dependent” means a payee’s spouse, minor child, or any person for whom the payee is legally obligated to provide support, including maintenance. (3) ” discounted present value ” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the united states internal revenue service. (4) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions are made from such consideration. (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (6) “interested parties” means the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party who has continuing rights or obligations under such structured settlement. If a delegate child support enforcement unit is enforcing a payee’s legal obligation to support his or her dependent children, pursuant to section 26-13-105, c.r.s., “interested parties” shall also include the delegate child support enforcement unit. (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 13-23-103. (8) “Payee” means an individual who is receiving tax-free payments under a structured settlement and who proposes to make a transfer of payment rights thereunder. (9) “Periodic payment” means a recurring payment or a scheduled future lump sum payment. (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the federal “internal revenue code of 1986″, as amended. (11) “Responsible administrative authority” means any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (12) ” Settled claim” means the original tort claim resolved by a structured settlement. (13) ” Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (14) ” Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) ” Structured settlement obligor” means the party who has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) ” structured settlement payment right” means the right to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (a) the payee is domiciled in Colorado, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is Colorado; or (b) the structured settlement agreement was approved by a court or responsible administrative authority in Colorado; or (c) the structured settlement agreement is expressly governed by the laws of Colorado. (17) “Terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and any order or other approval of a court or responsible administrative authority or other government authority that authorized or approved such structured settlement. (18) “transfer” means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of a structured settlement payment right made by a payee for consideration; except that the term “transfer” does not include the creation or perfection of a security interest in a structured settlement payment right under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. (19) “Transfer agreement” means the agreement providing for a transfer of a structured settlement payment right. (20) “Transferee” means a party acquiring or proposing to acquire a structured settlement payment right through a transfer. (21) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “Transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 13-23-103. required disclosures to payee. (1) not fewer than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: (a) the amounts and due dates of the structured settlement payments to be transferred; (b) the aggregate amount of such payments; (c) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities “, and the amount of the applicable federal rate used in calculating such discounted present value; (d) the gross advance amount; (e) an itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements, payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any attorney fees and related disbursements; (f) the net advance amount; (g) the amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee; and (h) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 13-23-104. Approval of transfers of structured settlement payment rights. (1) a direct or indirect transfer of a structured settlement payment right shall not be effective and a structured settlement obligor or annuity issuer shall not be required to make a payment directly or indirectly to a transferee of a structured settlement payment right unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (a) the transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents; (b) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly and willingly waived such advice in writing; and (c) the transfer does not contravene any applicable statute or the order of any court or other government authority. 13-23-105. Effect of transfer of structured settlement payment right. (1) following a transfer of a structured settlement payment right pursuant to this article: (a) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from all liability for the transferred payments; (b) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) for any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with the provisions of this article; (c) neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and a transferee or assignee or between two or more transferees or assignees; and (d) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this article. 13-23-106. Procedure for approval of transfer. (1) an application under this article for approval of a transfer of a structured settlement payment right shall be made by the transferee and may be brought: (a) in the district court for the county in which the payee resides; (b) in the district court for the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or (c) in any court or before any responsible administrative authority that approved the structured settlement agreement. (2) not fewer than twenty days prior to the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under section 13-23-104, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The transferee shall file and serve: (a) a copy of the transferee’s application; (b) a copy of the transfer agreement; (c) a copy of the disclosure statement required pursuant to section 13-23-103; (d) a listing of each of the payee’s dependents, together with each dependent’s age; (e) a notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) a notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not fewer than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. 13-23-107. General provisions – construction. (1) The provisions of this article may not be waived by any payee. (2) Any transfer agreement entered into on or after July 1, 2004, by a payee who resides in Colorado shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of Colorado. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (3) a transfer of structured settlement payment rights shall not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of a structured settlement payment right shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on a failure of such transfer to satisfy the conditions of this article. (5) Nothing contained in this article shall be construed to authorize a transfer of a structured settlement payment right in contravention of any law or to imply that a transfer under a transfer agreement entered into prior to July 1, 2004, is valid or invalid. (6) compliance with the requirements set forth in section 13-23-103 and fulfillment of the conditions set forth in section 13-23-104 shall be solely the responsibility of the transferee in a transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. 13-23-108. Exceptions – judgment for periodic payment against a health care professional or institution – assignment of workers’ compensation benefits. Nothing in this article shall apply to a judgment entered pursuant to the provisions of part 2 of article 64 of this title or to compensation or benefits due under articles 40 to 47 of title 8, c.r.s. section 2. Effective date – applicability. This act shall take effect July 1, 2004, and shall apply to agreements to transfer a structured settlement payment right executed on or after said date. Section 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety. *This opportunity is not currently offered to persons residing in North Carolina.

Connecticut

Connecticut Senate Bill: 1059 Synopsis: AN ACT CONCERNING STRUCTURED SETTLEMENTS. Text: Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective October 1, 2003) For the purposes of sections 1 to 6, inclusive, of this act: (1) ‘Annuity issuer’ means an insurer that has issued a contract to fund periodic payments under a structured settlement; (2) ‘Dependents’ include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony; (3) ‘Discounted present value’ means the present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (4) ‘Gross advance amount’ means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration; (5) ‘Independent professional advice’ means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; (6) ‘Interested parties’ means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor and any other party that has continuing rights or obligations under such structured settlement; (7) ‘Net advance amount’ means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision (5) of section 2 of this act; (8) ‘Payee’ means an individual who is receiving tax-free payments under a structured settlement and proposes to transfer payment rights under the structured settlement; (9) ‘Periodic payments’ includes both recurring payments and scheduled future lump-sum payments; (10) ‘Qualified assignment agreement’ means an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (11) ‘Responsible administrative authority’ means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (12) ‘Settled claim’ means the original tort claim or workers’ compensation claim resolved by a structured settlement; (13) ‘Structured settlement’ means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (14) ‘Structured settlement agreement’ means the agreement, judgment, stipulation or release embodying the terms of a structured settlement; (15) ‘Structured settlement obligor’ means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (16) ‘Structured settlement payment rights’ means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (A) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; (B) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (C) The structured settlement agreement is expressly governed by the laws of this state; (17) ‘Terms of the structured settlement’ include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement; (18) ‘Transfer’ means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration, but does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights; (19) ‘Transfer agreement’ means the agreement providing for a transfer of structured settlement payment rights; (20) ‘Transfer expenses’ means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, but not limited to, court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions and other payments to a broker or other intermediary, but does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer; and (21) ‘Transferee’ means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Sec. 2. (NEW) (Effective October 1, 2003) Not less than three days prior to the date on which the payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in boldface type at least fourteen points in size, setting forth: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of such payments; (3) The discounted present value of the payments to be transferred, which shall be identified as the ‘calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,’ and the amount of the applicable federal rate used in calculating such discounted present value; (4) The gross advance amount; (5) An itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (6) The net advance amount; (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Sec. 3. (NEW) (Effective October 1, 2003) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (3) The transfer does not contravene any applicable statute or the order of any court or other government authority. Sec. 4. (NEW) (Effective October 1, 2003) Following a transfer of structured settlement payment rights under sections 1 to 6, inclusive, of this act: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer, and (B) For any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with sections 1 to 6, inclusive, of this act; (3) Neither the structured settlement obligor nor the annuity issuer may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of sections 1 to 6, inclusive, of this act. Sec. 5. (NEW) (Effective October 1, 2003) (a) An application under sections 1 to 6, inclusive, of this act for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the superior court for the judicial district in which the payee resides or in which the structured settlement obligor or annuity issuer maintains its principal place of business or in the superior court or before the responsible administrative authority that approved the structured settlement agreement. (b) Not less than twenty days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 3 of this act, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its approval, including with the notice: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under section 2 of this act; (4) A listing of each of the payee’s dependents, together with each dependent’s age; (5) Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. Sec. 6. (NEW) (Effective October 1, 2003) (a) The provisions of sections 1 to 6, inclusive, of this act may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this section by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and agreed to maintain procedures reasonably satisfactory to the structured settlement obligor and the annuity issuer for: (1) Periodically confirming the payee’s survival; and (2) Giving the structured settlement obligor and the annuity issuer prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of sections 1 to 6, inclusive, of this act. (e) Nothing contained in sections 1 to 6, inclusive, of this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this section is valid or invalid. (f) Compliance with the requirements set forth in section 2 of this act and fulfillment of the conditions set forth in section 3 of this act shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions. (g) The provisions of sections 1 to 6, inclusive, of this act shall be applicable to transfer agreements executed on and after October 1, 2003. Sec. 7. Section 52-225f of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2003): (a) For purposes of this section: (1) ‘Annuity issuer’ means an insurer that has issued any insurance contract used to fund periodic payments under a structured settlement; (2) ‘Expenses’ means all broker’s commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs and charges payable by the payee in connection with the proposed transfer or deductible from the gross consideration that would be paid to the payee in connection with the transfer; (3) ‘Interested parties’ means, with respect to any structured settlement, the payee, any beneficiary designated to receive payments following the payee’s death or, if the designated beneficiary is a minor, the designated beneficiary’s parent or guardian, the annuity issuer and the structured settlement obligor; (4) ‘Payee’ means an individual who is receiving payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (5) ‘Structured settlement’ means an arrangement for periodic payment of damages established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (6) ‘Structured settlement obligor’ means, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or under an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; (7) ‘Structured settlement payment rights’ means rights to receive periodic payments, including lump sum payments, under a structured settlement, whether from the settlement obligor or the annuity issuer; (8) ‘Transfer’ means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance made for consideration; (9) ‘Transfer agreement’ means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; and (10) ‘Transferee’ means any person receiving structured settlement payment rights resulting from a transfer. (b) No transfer of structured settlement payment rights, either directly or indirectly, shall be effective by any payee domiciled in this state or by any payee entitled to receive payments under a structured settlement funded by an insurance contract issued by an insurer domiciled in this state or owned by an insurer or corporation domiciled in this state and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of any such transfer unless (1) not less than ten days prior to the date on which the payee entered into the transfer agreement, the transferee provided to the payee a written disclosure statement setting forth (A) the amounts and due dates of the structured settlement payments to be transferred; (B) the aggregate amount of the payments; (C) the gross amount of all expenses; (D) the amount payable to the payee, net of all expenses, in exchange for the payments; (E) the discounted present value of all structured settlement payments to be transferred and the discount rate used in determining such discounted present value; and (F) a statement that the payee may be subject to adverse federal and state income tax consequences as a result of the proposed transfer; and (2) such transfer has been approved by a court pursuant to subsection (c) of this section. (c) (1) Prior to any transfer, the payee entitled to receive payments under such structured settlement shall commence a declaratory judgment action under section 52-29 for a determination as to whether the transfer of such structured settlement payment rights is in the best interests of the payee and is fair and reasonable to all interested parties under all of the circumstances then existing. The annuity issuer and the structured settlement obligor shall be made parties to such action. If the court determines, after hearing, that such transfer should be allowed, it shall approve such transfer upon such terms and conditions as it deems appropriate. (2) The court in which the original action was or could have been filed or the court which has jurisdiction where the applicant resides shall have jurisdiction over any such action. (3) The payee shall cause notice of the action to be served on all interested parties by a proper officer or other person lawfully empowered to make service. The notice of the action shall include (A) a copy of the payee’s application to the court for approval of the transfer, (B) a copy of the disclosure statement required under subsection (b) of this section and (C) notice of the hearing. (4) The payee may seek an order setting the deadline for the filing of written objections. The payee shall give notice to all interested parties of the deadline for filing objections whether such deadline has been established by court order or by operation of the general statutes or court rule. Notice shall be mailed to all interested parties at least ten days before such deadline. (5) The court shall hold a hearing on the application. The payee shall give notice of the hearing to all interested parties. (d) Nothing contained in this section shall imply that any transfer under a transfer agreement dated prior to October 1, 1998, is binding upon any interested party or that any annuity issuer or structured settlement obligor is under any obligation to make transferred payments to the transferee of any such prior transfer. (e) The provisions of this section may not be waived. (F) THE PROVISIONS OF THIS SECTION SHALL BE APPLICABLE TO TRANSFER AGREEMENTS EXECUTED ON AND AFTER OCTOBER 1, 1998, AND PRIOR TO OCTOBER 1, 2003. Approved June 18, 2003 Sponsor: Senate Committee on Joint Committee on Judiciary *This opportunity is not currently offered to persons residing in North Carolina.

Delaware

DELAWARE CODE ANNOTATED TITLE 10. COURTS AND JUDICIAL PROCEDURE PART IV. SPECIAL PROCEEDINGS CHAPTER 66. STRUCTURED SETTLEMENTS Revisor’s note. — This chapter became effective upon the signature of the Governor on May 26, 2000. Section 2 of 72 Del. Laws, c. 303, provides: “Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of applicable law or to give effect to any transfer of structured settlement payment rights that is invalid under applicable law.” Section 3 of 72 Del. Laws, c. 303, provides: “This chapter shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the thirty-first (31st) day after the date of enactment of this chapter [May 26, 2000]; provided, however, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to such date is effective.” 10 Del.C. Pt. IV, Ch. 66, Refs & Annos § 6601 Conditions to transfers of structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or responsible administrative authority, based on express findings by such court or responsible administrative authority that: (1) the transfer complies with the requirements of this chapter and will not contravene other applicable law; (2) not less than 10 days prior to the date on which the payee first incurred any obligation with respect to the transfer, the transferee has provided to the payee a disclosure statement in bold type, no small than 14 points, setting forth: a. the amounts and due dates of the structured settlement payments to be transferred; b. the aggregate amount of such payments; c. the discounted present value of such payments, together with the discount rate used in determining such discounted present value; d. the gross amount payable to the payee in exchange for such payments; e. an itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; f. the net amount payable to the payee after deduction of all commissions, fees, costs, expenses and charges described in subparagraph e. of this paragraph; g. the quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments; and h. the amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties) payable by the payee in the event of any breach of the transfer agreement by the payee; (3) The transfer is fair and reasonable and in the best interests of the payee and the payee’s dependents; (4) The payee has received independent professional advice regarding the legal, tax and financial implications of the transfer; (5) If the transfer would contravene the terms of the structured settlement: a. The transfer has been expressly approved in writing by: 1. Each interested party; provided, however, that the approval of the annuity issuer and the structured settlement obligor shall not be required if all other interested parties approve the transfer and waive any and all rights to require that the transferred payments be made to the payee in accordance with the terms of the structured settlement; and 2. Any court or government authority, other than the court or responsible administrative authority from which authorization of the transfer is sought under this chapter, which previously approved the structured settlement; and b. Signed originals of all approvals required under subparagraph a. of this paragraph have been filed with the court or responsible administrative authority from which authorization of the transfer is sought under this chapter, and originals or copies have been furnished to all interested parties; and (6) The transferee has given written notice of the transferee’s name, address and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of such notice with the court or responsible administrative authority. § 6602 Definitions. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them, except where the context clearly indicates a different meaning: (a) “Annuity issuer” shall mean an insurer that has issued an insurance contract used to fund periodic payments under a structured settlement; (b) “Applicable law” shall mean: (1) The federal laws of the United States; (2) The laws of this State, including principles of equity applied in the courts of this State; and (3) The laws of any other jurisdiction: a. Which is the domicile of the payee or any other interested party; b. Under whose laws a structured settlement agreement was approved by a court; or c. In whose courts a settled claim was pending when the parties entered into a structured settlement agreement; (c) “Dependents” shall include a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony; (d) “Discounted present value” shall mean the fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (e) “Favorable tax determination” shall mean, with respect to a proposed transfer of structured settlement payment rights, any of the following authorities that definitively establishes that the federal income tax treatment of the structured settlement for the parties to the structured settlement agreement and any qualified assignment agreement, other than the payee, will not be affected by such transfer: (1) A provision of the United States Internal Revenue Code, United States Code Title 26 [26 U.S.C.S. § 130], as amended from time to time, or a United States Treasury regulation adopted pursuant thereto; (2) A revenue ruling or revenue procedure issued by the United States Internal Revenue Service; (3) A private letter ruling by the United States Internal Revenue Service with respect to such transfer; (4) A decision of the United States Supreme Court or a decision of a lower federal court in which the United States Internal Revenue Service has acquiesced; (f) “Federal hardship standard” shall mean a federal standard applicable to transfers of structured settlement payment rights based on findings of a court or responsible administrative authority regarding the payees’ needs, as contained in the United States Internal Revenue Code, United States Code Title 26, as amended from time to time, or in a United States Treasury regulation adopted pursuant thereto; (g) “Independent professional advice” shall mean the advice of an attorney, certified public accountant, actuary or other licensed professional adviser: (1) Who is engaged by a payee to render advice concerning the legal, tax and financial implications of a transfer of structured settlement payment rights; (2) Who is not in any manner affiliated with or compensated by the transferee of such transfer; and (3) Whose compensation for rendering such advice is not affected by whether a transfer occurs or does not occur. (h) “Interested parties” shall mean, with respect to any structured settlement, the payee, any beneficiary designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; (i) “Payee” shall mean an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (j) “Qualified assignment agreement” shall mean an agreement providing for a qualified assignment within the meaning of § 130 of the United States Internal Revenue Code, United States Code Title 26 (26 U.S.C.S. § 130), as amended from time to time; (k) “Responsible administrative authority” shall mean, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (l) “Settled claim” shall mean the original tort claim or workers’ compensation claim resolved by a structured settlement; (m) “Structured settlement” shall mean an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers” compensation claim; (n) “Structured settlement agreement” shall mean the agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments; (o) “Structured settlement obligor” shall mean, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (p) “Structured settlement payment rights” shall mean rights to receive periodic payments (including lump sum payments) under a structured settlement, whether from the settlement obligor or the annuity issuer, where: (1) The payee, the settlement obligor, the annuity issuer, or any other interested party is domiciled in this State; (2) The structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) The settled claim was pending before the courts of this State when the parties entered into the structured settlement agreement; (q) “Transfer” shall mean any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance made by a payee for consideration; and (r) “Terms of the structured settlement” shall include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving such structured settlement; (s) “Transfer agreement” shall mean the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. § 6603 Jurisdiction; procedure for approval of transfers. (a) The Superior Court shall have non-exclusive jurisdiction over any application for authorization, under § 6601 of this title, of a transfer of structured settlement payment rights. (b) Not less than 20 days prior to the scheduled hearing on any application for authorization of a transfer of structured settlement payment rights under § 6601 of this title, the transferee shall file with the court and serve on any other government authority which previously approved the structured settlement, on all interested parties, and on the Office of the Attorney General, the Director of the Consumer Affairs Unit, the Insurance Commissioner and any known State official who is vested with discretionary authority to be heard in proceedings under this chapter, a notice of the proposed transfer and the application for its authorization, including in such notice: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under § 6601(b) of this title; (4) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (5) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed (which shall be not less than fifteen (15) days after service of the transferee’s notice) in order to be considered by the court or responsible administrative authority. (c) Those parties, persons and officials named in § 6603(b) of this title shall have standing to raise, appear and be heard on any matter relating to an application for authorization of a transfer of structured settlement payment rights under this chapter. § 6604 No waiver; no penalties. (a) The provisions of this chapter shall not be waived. (b) No payee who proposes to make a transfer of structured settlement payment rights shall inure any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee based on any failure of such transfer to satisfy the conditions of § 6601 of this title. Copyright © West 2002 No Claim to Orig. U.S. Govt. Works *This opportunity is not currently offered to persons residing in North Carolina.

Florida

The 2002 Florida Statutes Title XXXVII INSURANCE Chapter 626 INSURANCE FIELD REPRESENTATIVES AND OPERATIONS View Entire Chapter 1626.99296 Transfers of structured settlement payment rights. (1)PURPOSE.–The purpose of this section is to protect recipients of structured settlements who are involved in the process of transferring structured settlement payment rights. (2)DEFINITIONS.–As used in this section, the term: (a)”Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement. (b)”Applicable law” means any of the following, as applicable in interpreting the terms of a structured settlement: 1. The laws of the United States; 2. The laws of this state, including principles of equity applied in the courts of this state; and 3. The laws of any other jurisdiction: a. That is the domicile of the payee or any other interested party; b. Under whose laws a structured settlement agreement was approved by a court; or c. In whose courts a settled claim was pending when the parties entered into a structured settlement agreement. (c)”Applicable federal rate” means the most recently published applicable rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service pursuant to s. 7520 of the United States Internal Revenue Code, as amended. (d)”Assignee” means any party that acquires structured settlement payment rights directly or indirectly from a transferee of such rights. (e)”Dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including spousal maintenance. (f)”Discount and finance charge” means the sum of all charges that are payable directly or indirectly from assigned structured settlement payments and imposed directly or indirectly by the transferee and that are incident to a transfer of structured settlement payment rights, including: 1. Interest charges, discounts, or other compensation for the time value of money; 2. All application, origination, processing, underwriting, closing, filing, and notary fees and all similar charges, however denominated; and 3. All charges for commissions or brokerage, regardless of the identity of the party to whom such charges are paid or payable. The term does not include any fee or other obligation incurred by a payee in obtaining independent professional advice concerning a transfer of structured settlement payment rights. (g)”Discounted present value” means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate as the discount rate. (h)”Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser: 1. Who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; 2. Who is not in any manner affiliated with or compensated by the transferee of the transfer; and 3. Whose compensation for providing the advice is not affected by whether a transfer occurs or does not occur. (i)”Interested parties” means: 1. The payee; 2. Any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death or, if such designated beneficiary is a minor, the designated beneficiary’s parent or guardian; 3. The annuity issuer; 4. The structured settlement obligor; or 5. Any other party who has continuing rights or obligations under the structured settlement. (j)”Payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. (k)”Qualified assignment agreement” means an agreement providing for a qualified assignment, as authorized by 26 U.S.C. s. 130 of the United States Internal Revenue Code, as amended. (l)”Settled claim” means the original tort claim resolved by a structured settlement. (m)”Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim. (n)”Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. (o)”Structured settlement obligor” means the party who is obligated to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (p)”Structured settlement payment rights” means rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: 1. The payee or any other interested party is domiciled in this state; 2. The structured settlement agreement was approved by a court of this state; or 3. The settled claim was pending before the courts of this state when the parties entered into the structured settlement agreement. (q)”Terms of the structured settlement” means the terms of the structured settlement agreement; the annuity contract; a qualified assignment agreement; or an order or approval of a court or other government authority authorizing or approving the structured settlement. (r)”Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration. (s)”Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. (t)”Transferee” means a person who is receiving or who will receive structured settlement payment rights resulting from a transfer. (3) CONDITIONS TO TRANSFERS OF STRUCTURED SETTLEMENT PAYMENT RIGHTS AND STRUCTURED SETTLEMENT AGREEMENTS.– (a) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer is authorized in advance in a final order by a court of competent jurisdiction which is based on the written express findings by the court that: 1. The transfer complies with this section and does not contravene other applicable law; 2. At least 10 days before the date on which the payee first incurred an obligation with respect to the transfer, the transferee provided to the payee a disclosure statement in bold type, no smaller than 14 points in size, which specifies: a. The amounts and due dates of the structured settlement payments to be transferred; b. The aggregate amount of the payments; c. The discounted present value of the payments, together with the discount rate used in determining the discounted present value; d. The gross amount payable to the payee in exchange for the payments; e. An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, and notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; f. The net amount payable to the payee after deducting all commissions, fees, costs, expenses, and charges described in sub-subparagraph e.; g. The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments, which must be disclosed in the following statement: “The net amount that you will receive from us in exchange for your future structured settlement payments represent _____ percent of the estimated current value of the payments based upon the discounted value using the applicable federal rate”; h. The effective annual interest rate, which must be disclosed in the following statement: “Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of _____ percent per year”; and i. The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee; 3. The payee has established that the transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents; 4. The payee has received, or waived his or her right to receive, independent professional advice regarding the legal, tax, and financial implications of the transfer; 5.The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court; 6.The transfer agreement provides that if the payee is domiciled in this state, any disputes between the parties will be governed in accordance with the laws of this state and that the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement; and 7. The court has determined that the net amount payable to the payee is fair, just, and reasonable under the circumstances then existing. (b) If a proposed transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court may grant, deny, or impose conditions upon the proposed transfer which the court deems just and proper given the facts and circumstances and in accordance with established principles of law. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability, including reasonable costs and attorney’s fees, which arises from compliance by the issuer or obligor with the order of the court. (c) Any provision in a transfer agreement which gives a transferee power to confess judgment against a payee is unenforceable to the extent that the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or payee. (d) In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in this state, the structured settlement obligor must disclose in writing to the claimant or the claimant’s legal representative all of the following information that is not otherwise specified in the structured settlement agreement: 1. The amounts and due dates of the periodic payments to be made under the structured settlement agreement. In the case of payments that will be subject to periodic percentage increases, the amounts of future payments may be disclosed by identifying the base payment amount, the amount and timing of scheduled increases, and the manner in which increases will be compounded; 2. The amount of the premium payable to the annuity issuer; 3. The discounted present value of all periodic payments that are not life-contingent, together with the discount rate used in determining the discounted present value; 4. The nature and amount of any costs that may be deducted from any of the periodic payments; 5. Where applicable, that any transfer of the periodic payments is prohibited by the terms of the structured settlement and may otherwise be prohibited or restricted under applicable law; and 6. That any transfer of the periodic payments by the claimant may subject the claimant to serious adverse tax consequences. (4)JURISDICTION; PROCEDURE FOR APPROVAL OF TRANSFERS.–At least 20 days before the scheduled hearing on an application for authorizing a transfer of structured settlement payment rights under this section, the transferee must file with the court and all interested parties a notice of the proposed transfer and the application for its authorization. The notice must include: (a) A copy of the transferee’s application to the court; (b) A copy of the transfer agreement; (c) A copy of the disclosure statement required under subsection (3); (d) Notification that an interested party may support, oppose, or otherwise respond to the transferee’s application, in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (e) Notification of the time and place of the hearing and notification of the manner in which and the time by which any written response to the application must be filed in order to be considered by the court. A written response to an application must be filed within 15 days after service of the transferee’s notice. (5) WAIVER PROHIBITED; NO PENALTIES INCURRED.– (a) The provisions of this section may not be waived. (b) If a transfer of structured settlement payment rights fails to satisfy the conditions of subsection (3), the payee who proposed the transfer does not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee. (6) NONCOMPLIANCE.– (a) If a transferee violates the requirements for stipulating the discount and finance charge provided for in subsection (3), neither the transferee nor any assignee may collect from the transferred payments, or from the payee, any amount in excess of the net advance amount, and the payee may recover from the transferee or any assignee: 1. A refund of any excess amounts previously received by the transferee or any assignee; 2. A penalty in an amount determined by the court, but not in excess of three times the aggregate amount of the discount and finance charge; and 3. Reasonable costs and attorney’s fees. (b) If the transferee violates the disclosure requirements in subsection (3), the transferee and any assignee are liable to the payee for: 1. A penalty in an amount determined by the court, but not in excess of three times the amount of the discount and finance charge; and 2. Reasonable costs and attorney’s fees. (c) A transferee or assignee is not liable for any penalty in any action brought under this section if the transferee or assignee establishes by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the transferee’s maintenance of procedures reasonably designed to avoid such errors. (d) Notwithstanding any other law, an action may not be brought under this section more than 1 year after the due date of: 1. The last transferred structured settlement payment, in the case of a violation of the requirements for stipulating the discount and finance charge provided for in subsection (3). 2. The first transferred structured settlement payment, in the case of a violation of the disclosure requirements of subsection (3). (e) When any interested party has reason to believe that any transferee has violated this section, any interested party may bring a civil action for injunctive relief, penalties, and any other relief that is appropriate to secure compliance with this section. History.–s. 7, ch. 2001-207; s. 7, ch. 2001-247. 1Note.–Section 30, ch. 2001-198, provides that “[n]othing contained in s. 679.4061, Florida Statutes, or s. 679.4081, Florida Statutes, as created by this act, shall supersede the provisions of SB 108 or HB 767, relating to structured settlements, if Senate Bill 108 or House Bill 767 becomes a law.” Committee Substitute for Committee Substitute for Senate Bill 108 became ch. 2001-207; s. 7, ch. 2001-207, relates to structured settlements. House Bill 767 did not pass. *This opportunity is not currently offered to persons residing in North Carolina.

Georgia

The Georgia Structured Settlement Protection Statute Senate Bill 174 AN ACT: To amend Article 4 of Chapter 12 of Title 51 of the Official Code of Georgia Annotated, relating to damages in tort actions, so as to change provisions relating to prerequisites for transfer of structured settlement payment rights; to provide for court filings; to provide for hearings relative to transfers; to change provisions relating to notification of cancellation rights; to provide for related matters; to repeal conflicting laws; and for other purposes. Be it enacted by the general assembly of Georgia: SECTION 1. Article 4 of Chapter 12 of Title 51 of the Official Code of Georgia Annotated, relating to damages in tort actions, is amended by striking Code Section 51-12-71, relating to prerequisites for transfer of structured settlement payment rights, and inserting in lieu thereof the following:51-12-71. (a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order by a court of competent jurisdiction or order of any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement based on express findings by the court or government authority that: (1) The transfer complies with the requirements of this article and does not contravene any federal or state statute or the order of any court or any responsible administrative authority; (2) The transfer is in the best interest of the payee taking into account the welfare and support of the payee´s dependents; (3) Not less than ten days prior to the date on which the transfer agreement is executed in writing, the transferee has provided to the payee an informational pamphlet relating to transfers of structured settlements as provided for in subsection (b) of Code Section 51-12-73, when available, and a separate disclosure statement in bold type, no smaller than 14 points, setting forth: (A) The amounts and due dates of the structured settlement payments to be transferred; (B) The aggregate amount of such payments; (C) The discounted present value of such payments, together with the discount rate used in determining such discounted present value; (D) The gross amount payable to the payee in exchange for such payments; (E) An itemized listing of all brokers´ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, legal fees, notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (F) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in subparagraph (E) of this paragraph; (G) The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments; and (H) The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties) payable by the payee in the event of any breach of the transfer agreement by the payee; and (4) The transferee has given written notice of the transferee´s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court. (b) At least 20 days before the hearing which is scheduled on an application for authorizing a transfer of structured settlement payment rights under this Code section, the transferee shall file with the court and deliver to all interested parties a notice of the proposed transfer and the application for its authorization. The notice shall include the following: (1) A copy of the transferee´s application to the court; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under paragraph (3) of subsection (a) of this Code section; (4) Notification that an interested party may support, oppose, or otherwise respond to the transferee´s application, either in person or through counsel, by participating in the hearing or by submitting written comments to the court; and (5) A rule nisi containing notification of the time and place of the hearing and notification of the manner in and the time by which any written response to the application must be filed in order to be considered by the court. A written response shall be filed within 15 days after service of the transferee´s notice. (c) Delivery of notice as required by subsection (b) of this Code section may be made as provided in Code Section 9-11-4 or by registered or certified mail, return receipt requested. Notice by registered or certified mail is effective upon the date of delivery as shown on the return receipt. If notice by registered or certified mail is refused or returned undelivered, notice shall be delivered as provided in Code Section 9-11-4. (d) The venue for any application brought under this Code section shall be in the county in which any transferee or transferor resides or in any county in which any of the transferees or transferors have consented to venue. SECTION 2. Said article is further amended by striking Code Section 51-12-72, relating to required transfer agreements, and inserting in lieu thereof the following: 51-12-72. (a) Any transfer agreement of structured settlement payment rights must, in addition to the other requirements of this article, be executed in writing and filed as provided in Code Section 51-12-71. The transfer agreement shall not be so executed until after the expiration of the ten-day period provided for in paragraph (3) of Code Section 51-12-71. (b) No payee shall incur any obligation of any type with respect to a proposed transfer of structured settlement payment rights prior to the execution in writing of the transfer agreement. (c) Any payee who executes in writing a transfer agreement shall have the right to rescind the transfer at any time within the next 21 days following the written execution of the transfer agreement or at the hearing provided for in subsection (b) of Code Section 51-12-71, whichever event occurs last. The transferee shall furnish to the payee at the time of execution of the transfer agreement a notice to the payee allowing the payee 21 days to cancel the transfer. This right to cancel shall not limit or otherwise affect the payee´s right to cancel pursuant to any other provision of applicable law. The notice shall serve as the cover sheet to the transfer documents. It shall be on a separate sheet of paper with no other written or pictorial material, in at least ten-point bold type, double spaced, and shall read substantially as follows: ‘NOTICE OF CANCELLATION RIGHTS: Please read this form completely and carefully. It contains valuable cancellation rights. You may cancel this transaction at any time prior to 5:00 P.M. of the twenty-first day following receipt of this notice or at the hearing on the application for authorization of a transfer of structured settlement payment rights, whichever event occurs last. This cancellation right cannot be waived in any manner. To cancel, sign this form, and mail or deliver it to the address below by 5:00 P.M. of ______________ (the twenty-first day following the transaction). It is best to mail it by certified mail or statutory overnight delivery, return receipt requested, and to keep a photocopy of the signed form and your post office receipt. Address to which cancellation is to be returned: ___________________________________________ I (we) hereby cancel this transaction. _______________________ Payee´s Signature Date: SECTION 3. All laws and parts of laws in conflict with this Act are repealed. *This opportunity is not currently offered to persons residing in North Carolina.

Hawaii

HI ST s 676-1 HAWAII REVISED STATUTES ANNOTATED DIVISION 4. COURTS AND JUDICIAL PROCEEDINGS. TITLE 36. CIVIL REMEDIES AND DEFENSES AND SPECIAL PROCEEDINGS. CHAPTER 676. STRUCTURED SETTLEMENT PROTECTION ACT. § 676-1 Definitions. As used in this chapter, unless the context otherwise requires: ‘Annuity issuer’ means an insurer that has issued a contract to fund periodic payments under a structured settlement. ‘Dependents’ include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. ‘Discounted present value’ means the present value of future payments, determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. ‘Gross advance amount’ means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. ‘Independent professional advice’ means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. ‘Interested party’ means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. ‘Net advance amount’ means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section -2(5). ‘Payee’ means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of the payment rights. ‘Periodic payments’ includes both recurring payments and scheduled future lump sum payments. ‘Qualified assignment agreement’ means an agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. ‘Responsible administrative authority’ means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. ‘Settled claim’ means the original tort claim resolved by a structured settlement. ‘Structured settlement’ means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. ‘Structured settlement agreement’ means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. ‘Structured settlement obligor’ means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. ‘Structured settlement payment rights’ means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (1) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this State; (2) The structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) The structured settlement agreement is expressly governed by the laws of this State. ‘Terms of the structured settlement’ include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. ‘Transfer’ means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term ‘transfer’ shall not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest, or otherwise to enforce the blanket security interest against the structured settlement payment rights. ‘Transfer agreement’ means the agreement providing for a transfer of structured settlement payment rights. ‘Transfer expenses’ means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. ‘Transfer expenses’ shall not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. ‘Transferee’ means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. § 676-2 Required disclosures to payee. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of the payments in paragraph (1); (3) The discounted present value of the payments to be transferred, which shall be identified as the ‘calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities’, and the amount of the applicable federal rate used in calculating the discounted present value; (4) The gross advance amount; (5) An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any of the fees and disbursements stated in this paragraph; (6) The net advance amount; (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. § 676-3 Approval of transfers of structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights, unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based upon express findings by the court or responsible administrative authority that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and (3) The transfer does not contravene any applicable statute or the order of any court or other government authority. § 676-4 Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this chapter: (1) The structured settlement obligor and the annuity issuer, as to all parties except the transferee, shall be discharged and released from any and all liability for the transferred payments; (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) For any taxes incurred by the parties as a consequence of the transfer, if the transfer contravenes the terms of the structured settlement; and (B) For any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by the parties with the order of the court or responsible administrative authority, or arising as a consequence of the transferee’s failure to comply with this chapter; (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. § 676-5 Procedure for approval of transfers. (a) An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in any court or before any responsible administrative authority: (1) In the county in which the payee resides; (2) In the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or (3) That approved the structured settlement agreement. (b) To apply for approval of a transfer of structured settlement payment rights under section 676-3, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The notice shall include: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under section 676-2; (4) A listing of each of the payee’s dependents, together with each dependent’s age; (5) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application shall be filed, to be considered by the court or responsible administrative authority; provided that the written responses shall be filed not less than fifteen days after service of the transferee’s notice. § 676-6 General provisions construction. (a) The provisions of this chapter may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this Act by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this State. No transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) Periodically confirming the payee’s survival; and (2) Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this chapter. (e) Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this Act is valid or invalid. (f) Compliance with the requirements set forth in section 676-2 and fulfillment of the conditions set forth in section 676-3 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with the requirements or failure to fulfill the conditions. *This opportunity is not currently offered to persons residing in North Carolina.

Idaho

IDAHO CODE TITLE 28. COMMERCIAL TRANSACTIONS CHAPTER 9. SECURED TRANSACTIONS Part 1. General Provisions 28-9-109 Scope. (a) Except as otherwise provided in subsections (c) and (d), this chapter applies to: (1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (2) An agricultural lien; (3) A sale of accounts, chattel paper, payment intangibles or promissory notes; (4) A consignment; (5) A security interest arising under section 28-2-401, 28-2-505, 28-2-711(3) or 28-12-508(5), as provided in section 28-9-110; and (6) A security interest arising under section 28-4-210 or 28-5-120. (b) The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply. (c) This chapter does not apply to the extent that: (1) A statute, regulation, or treaty of the United States preempts this chapter; (2) Another statute of this state expressly governs the creation, perfection, priority or enforcement of a security interest created by this state or a governmental unit of this state; (3) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority or enforcement of a security interest created by the state, country or governmental unit; or (4) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 28-5-114. (d) This chapter does not apply to: (1) A landlord’s lien, other than an agricultural lien; (2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 28-9-333 applies with respect to priority of the lien; (3) An assignment of a claim for wages, salary or other compensation of an employee; (4) A sale of accounts, chattel paper, payment intangibles or promissory notes as part of a sale of the business out of which they arose; (5) An assignment of accounts, chattel paper, payment intangibles or promissory notes which is for the purpose of collection only; (6) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract; (7) An assignment of a single account, payment intangible or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness; (8) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but sections 28-9-315 and 28-9-322 apply with respect to proceeds and priorities in proceeds; (9) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that wascollateral; (10) A right of recoupment or set-off, but: (A) section 28-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and (B) section 28-9-404 applies with respect to defenses or claims of an account debtor; (11) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for: (A) liens on real property in sections 28-9-203 and 28-9-308; (B) fixtures in section 28-9-334; (C) fixture filings in sections 28-9-501, 28-9-502, 28-9-512, 28-9-516 and 28-9-519; and (D) security agreements covering personal and real property in section 28-9- 604; (12) An assignment of a claim arising in tort, other than a commercial tort claim, but sections 28-9-315 and 28-9-322 apply with respect to proceeds and priorities in proceeds; (13)(A) A claim or right to receive compensation for injuries or sickness as described in (i) 26 U.S.C. section 104(a)(1) and (ii) on and after the effective date of this chapter, in 26 U.S.C. section 104(a)(2), as those sections may be amended from time to time. Notwithstanding the foregoing, this chapter (other than sections 28-9-406(d) and 28-9-408(a) and (c), Idaho Code, in the case of transfers made on and after the effective date of this chapter) shall apply to such compensation as described in 26 U.S.C. section 104(a)(2) if the sale, pledge, assignment or other transfer of rights to receive such compensation under a structured settlement is approved by the final order of a court pursuant to, and otherwise complies with, the requirements of paragraph (B) of this subsection. (B)(i) Definitions. For purposes of this subsection: 1. “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement; 2. “dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony; 3. “discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service; 4. “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration; 5. “independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; 6. “interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; 7. “net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under paragraph (B)(ii)5. of this subsection; 8. “payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder; 9. “periodic payments” includes both recurring payments and scheduled future lump sum payments; 10. “qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of 26 U.S.C. section 130, as amended from time to time; 11. “settled claim” means the original tort claim resolved by a structured settlement; 12. “structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim; 13. “structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement; 14. “structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; 15. “structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: A. the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; or B. the structured settlement agreement was approved by a court in this state; or C. the structured settlement agreement is expressly governed by the laws of this state; 16. “terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or other government authority that authorized or approved such structured settlement; 17. “transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights; 18. “transfer agreement” means the agreement providing for a transfer of structured settlement payment rights; 19. “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finder’s fees, commissions, and other payments to a broker or other intermediary; “transfer expenses” do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer; 20. “transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. (ii) Required disclosures to payee. Not less than three (3) days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen (14) points, setting forth: 1. the amounts and due dates of the structured settlement payments to be transferred; 2. the aggregate amount of such payments; 3. the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the applicable federal rate used in calculating such discounted present value; 4. the gross advance amount; 5. an itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; 6. the net advance amount; 7. the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and 8. a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. (iii) Approval of transfers of structured settlement payment rights. 1. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by such court that: A. the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; B. the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and C. the transfer does not contravene any applicable statute or the order of any court or other government authority. (iv) Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this subsection: 1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; 2. The transferee shall be liable to the structured settlement obligor and the annuity issuer: A. if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and B. for any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by such parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this subsection; 3. Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two (2) or more transferees or assignees; and 4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this subsection. (v) Procedure for approval of transfers. 1. An application under this subsection for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court which approved the structured settlement agreement. 2. Not less than twenty (20) days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under paragraph (B)(iii) of this subsection, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with such notice: A. a copy of the transferee’s application; B. a copy of the transfer agreement; C. a copy of the disclosure statement required under paragraph (B)(ii) of this subsection; D. a listing of each of the payee’s dependents, together with each dependent’s age; E. notification that any interested party is entitledto support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and F. notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed (which shall be not less than fifteen (15) days after service of the transferee’s notice) in order to be considered by the court. (vi) General provisions– construction. 1. The provisions of this subsection may not be waived by any payee. 2. Any transfer agreement entered into on or after the effective date of this subsection by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. 3. No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (i) periodically confirming the payee’s survival, and (ii) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. 4. No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this subsection. 5. Nothing contained in this subsection shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this subsection is valid or invalid. 6. Compliance with the requirements set forth in paragraph (B)(ii) of this subsection and fulfillment of the conditions set forth in paragraph (B)(iii) of this subsection shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions. (vii) Effective date. This subsection shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the thirtieth day after the date of enactment of this subsection; provided however, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to such date is either effective or ineffective; or (14) A claim or right to receive benefits under a special needs trust as described in 42 U.S.C. section 1396p(d)(4), as amended from time to time. [I.C., § 28-9-109, as added by 2001, ch. 208, § 2, p. 704; am. 2001, ch. 299, § 1, p. 1078.] Compiler’s Notes. Former section 28-9-109 which comprised 1967, ch. 161, § 9- 109, p. 351; am. 1987, ch. 284, § 3, p. 596 was repealed by S.L. 2001, ch. 208, § 1. DECISIONS UNDER PRIOR LAW Analysis Lease of real property. Security interest. Lease of Real Property. A lease of real property is excluded from the scope of Title 28, Chapter 9 of the Idaho Code (Article 9 of the Uniform Commercial Code) by this section. Trustee Servs. Corp. v. East River Lumber Co. (In re Hodge Forest Indus., Inc.), 59 Bankr. 801 (Bankr. D. Idaho 1986). Security Interest. Where the evidence was clear that although a lease agreement did contain some attributes of an installment sales contract, there was no oral or written option to purchase the equipment, and title did not pass to the lessee at the end of the term, and since no other relevant evidence was presented demonstrating that the parties intended the transaction to be anything other than a lease, the trial court properly held that the lease agreement was not a security interest subject to Article 9 of the UCC. W.L. Scott, Inc. v. Madras Aerotech, Inc., 103 Idaho 736, 653 P.2d 791 (1982). No magic words are necessary to create a security interest and the agreement itself need not even contain the term “security interest”; this is in keeping with the policy of the code that form should not prevail over substance and that, whenever possible, effect should be given to the parties’ intent. Idaho Bank & Trust Co. v. Cargill, Inc., 105 Idaho 83, 665 P.2d 1093 (Ct. App. 1983). Opinions of Attorney General.Personal property tax liens are entitled to first priority, even over antecedent encumbrances, including prior perfected purchase money security interests. OAG 85-1. Collateral References. 6 Am. Jur. 2d, Attachment and Garnishment, § § 50, 52, 144. 15A Am. Jur. 2d, Commercial Code, § 11. 67 Am. Jur. 2d, Sales, § 442. Official Comment 1. Source. Former Sections 9-102, 9-104. 2. Basic Scope Provision. Subsection (a)(1) derives from former Section 9- 102(1) and (2). These subsections have been combined and shortened. No change in meaning is intended. Under subsection (a)(1), all consensual security interests in personal property and fixtures are covered by this Article, except for transactions excluded by subsections (c) and (d). As to which transactions give rise to a “security interest,” the definition of that term in Section 1- 201 must be consulted. When a security interest is created, this Article applies regardless of the form of the transaction or the name that parties have given to it. 3. Agricultural Liens. Subsection (a)(2) is new. It expands the scope of this Article to cover agricultural liens, as defined in Section 9-102. 4. Sales of Accounts, Chattel Paper, Payment Intangibles, Promissory Notes, and Other Receivables. Under subsection (a)(3), as under former Section 9-102, this Article applies to sales of accounts and chattel paper. This approach generally has been successful in avoiding difficult problems of distinguishing between transactions in which a receivable secures an obligation and those in which the receivable has been sold outright. In many commercial financing transactions the distinction is blurred. Subsection (a)(3) expands the scope of this Article by including the sale of a “payment intangible” (defined in Section 9-102 as “a general intangible under which the account debtor’s principal obligation is a monetary obligation”) and a “promissory note” (also defined in Section 9-102). To a considerable extent, this Article affords these transactions treatment identical to that given sales of accounts and chattel paper. In some respects, however, sales of payment intangibles and promissory notes are treated differently from sales of other receivables. See, e.g., Sections 9-309 (automatic perfection upon attachment), 9-408 (effect of restrictions on assignment). By virtue of the expanded definition of “account” (defined in Section 9-102), this Article now covers sales of (and other security interests in) “health-care-insurance receivables” (also defined in Section 9-102). Although this Article occasionally distinguishes between outright sales of receivables and sales that secure an obligation, neither this Article nor the definition of “security interest” (Section 1-201(37)) delineates how a particular transaction is to be classified. That issue is left to the courts. 5. Transfer of Ownership in Sales of Receivables. A “sale” of an account, chattel paper, a promissory note, or a payment intangible includes a sale of a right in the receivable, such as a sale of a participation interest. The term also includes the sale of an enforcement right. For example, a “[p]erson entitled to enforce” a negotiable promissory note (Section 3-301) may sell its ownership rights in the instrument. See Section 3-203, Comment 1 (“Ownership rights in instruments may be determined by principles of the law of property, independent of Article 3, which do not depend upon whether the instrument was transferred under Section 3-203.”). Also, the right under Section 3-309 to enforce a lost, destroyed, or stolen negotiable promissory note may be sold to a purchaser who could enforce that right by causing the seller to provide the proof required under that section. This Article rejects decisions reaching a contrary result, e.g., Dennis Joslin Co. v. Robinson Broadcasting, 977 F. Supp. 491 (D.D.C. 1997). Nothing in this section or any other provision of Article 9 prevents the transfer of full and complete ownership of an account, chattel paper, an instrument, or a payment intangible in a transaction of sale. However, as mentioned in Comment 4, neither this Article nor the definition of “security interest” in Section 1-201 provides rules for distinguishing sales transactions from those that create a security interest securing an obligation. This Article applies to both types of transactions. The principal effect of this coverage is to apply this Article’s perfection and priority rules to these sales transactions. Use of terminology such as “security interest,” “debtor,” and “collateral” is merely a drafting convention adopted to reach this end, and its use has no relevance to distinguishing sales from other transactions. See PEB Commentary No. 14. Following a debtor’s outright sale and transfer of ownership of a receivable, the debtor-seller retains no legal or equitable rights in the receivable that has been sold. See Section 9-318(a). This is so whether or not the buyer’s security interest is perfected. (A security interest arising from the sale of a promissory note or payment intangible is perfected upon attachment without further action. See Section 9-309.) However, if the buyer’s interest in accounts or chattel paper is unperfected, a subsequent lien creditor, perfected secured party, or qualified buyer can reach the sold receivable and achieve priority over (or take free of) the buyer’s unperfected security interest under Section 9-317. This is so not because the seller of a receivable retains rights in the property sold; it does not. Nor is this so because the seller of a receivable is a “debtor” and the buyer of a receivable is a “secured party” under this Article (they are). It is so for the simple reason that Sections 9-318(b), 9-317, and 9-322 make it so, as did former Sections 9-301 and 9-312. Because the buyer’s security interest is unperfected, for purposes of determining the rights of creditors of and purchasers for value from the debtor-seller, under Section 9-318(b) the debtor- seller is deemed to have the rights and title it sold. Section 9-317 subjects the buyer’s unperfected interest in accounts and chattel paper to that of the debtor-seller’s lien creditor and other persons who qualify under that section. 6. Consignments. Subsection (a)(4) is new. This Article applies to every “consignment.” The term, defined in Section 9-102, includes many but not all “true” consignments (i.e., bailments for the purpose of sale). If a transaction is a “sale or return,” as defined in revised Section 2-326, it is not a “consignment.” In a “sale or return” transaction, the buyer becomes the owner of the goods, and the seller may obtain an enforceable security interest in the goods only by satisfying the requirements of Section 9-203. Under common law, creditors of a bailee were unable to reach the interest of the bailor (in the case of a consignment, the consignor-owner). Like former Section 2-326 and former Article 9, this Article changes the common-law result; however, it does so in a different manner. For purposes of determining the rights and interests of third-party creditors of, and purchasers of the goods from, the consignee, but not for other purposes, such as remedies of the consignor, the consignee is deemed to acquire under this Article whatever rights and title the consignor had or had power to transfer. See Section 9- 319. The interest of a consignor is defined to be a security interest under revised Section 1-201(37), more specifically, a purchase-money security interest in the consignee’s inventory. See Section 9-103(d). Thus, the rules pertaining to lien creditors, buyers, and attachment, perfection, and priority of competing security interests apply to consigned goods. The relationship between the consignor and consignee is left to other law. Consignors also have no duties under Part 6. See Section 9-601(g). Sometimes parties characterize transactions that secure an obligation (other than the bailee’s obligation to returned bailed goods) as “consignments.” These transactions are not “consignments” as contemplated by Section 9- 109(a)(4). See Section 9-102. This Article applies also to these transactions, by virtue of Section 9-109(a)(1). They create a security interest within the meaning of the first sentence of Section 1-201(37). This Article does not apply to bailments for sale that fall outside the definition of “consignment” in Section 9-102 and that do not create a security interest that secures an obligation. 7. Security Interest in Obligation Secured by Non-Article 9 Transaction. Subsection (b) is unchanged in substance from former Section 9-102(3). The following example provides an illustration. Example 1: O borrows $10,000 from M and secures its repayment obligation, evidenced by a promissory note, by granting to M a mortgage on O’s land. This Article does not apply to the creation of the real-property mortgage. However, if M sells the promissory note to X or gives a security interest in the note to secure M’s own obligation to X, this Article applies to the security interest thereby created in favor of X. The security interest in the promissory note is covered by this Article even though the note is secured by a real-property mortgage. Also, X’s security interest in the note gives X an attached security interest in the mortgage lien that secures the note and, if the security interest in the note is perfected, the security interest in the mortgage lien likewise is perfected. See Sections 9-203, 9-308. It also follows from subsection (b) that an attempt to obtain or perfect a security interest in a secured obligation by complying with non-Article 9 law, as by an assignment of record of a real-property mortgage, would be ineffective. Finally, it is implicit from subsection (b) that one cannot obtain a security interest in a lien, such as a mortgage on real property, that is not also coupled with an equally effective security interest in the secured obligation. This Article rejects cases such as In re Maryville Savings & Loan Corp., 743 F.2d 413 (6th Cir. 1984), clarified on reconsideration, 760 F.2d 119 (1985). 8. Federal Preemption. Former Section 9-104(a) excluded from Article 9 “a security interest subject to any statute of the United States, to the extent that such statute governs the rights of parties to and third parties affected by transactions in particular types of property.” Some (erroneously) read theformer section to suggest that Article 9 sometimes deferred to federal law even when federal law did not preempt Article 9. Subsection (c)(1) recognizes explicitly that this Article defers to federal law only when and to the extent that it must-i.e., when federal law preempts it. 9. Governmental Debtors. Former Section 9-104(e) excluded transfers by governmental debtors. It has been revised and replaced by the exclusions in new paragraphs (2) and (3) of subsection (c). These paragraphs reflect the view that Article 9 should apply to security interests created by a State, foreign country, or a “governmental unit” (defined in Section 9-102) of either except to the extent that another statute governs the issue in question. Under paragraph (2), this Article defers to all statutes of the forum State. (A forum cannot determine whether it should consult the choice-of-law rules in the forum’s UCC unless it first determines that its UCC applies to the transaction before it.) Paragraph (3) defers to statutes of another State or a foreign country only to the extent that those statutes contain rules applicable specifically to security interests created by the governmental unit in question. Example 2: A New Jersey state commission creates a security interest in favor of a New York bank. The validity of the security interest is litigated in New York. The relevant security agreement provides that it is governed by New York law. To the extent that a New Jersey statute contains rules peculiar to creation of security interests by governmental units generally, to creation of security interests by state commissions, or to creation of security interests by this particular state commission, then that law will govern. On the other hand, to the extent that New Jersey law provides that security interests created by governmental units, state commissions, or this state commission are governed by the law generally applicable to secured transactions (i.e., New Jersey’s Article 9), then New York’s Article 9 will govern. Example 3: An airline that is an instrumentality of a foreign country creates a security interest in favor of a New York bank. The analysis used in the previous example would apply here. That is, if the matter is litigated in New York, New York law would govern except to the extent that the foreign country enacted a statute applicable to security interests created by governmental units generally or by the airline specifically. The fact that New York law applies does not necessarily mean that perfection is accomplished by filing in New York. Rather, it means that the court should apply New York’s Article 9, including its choice-of-law provisions. Under New York’s Section 9-301, perfection is governed by the law of the jurisdiction in which the debtor is located. Section 9-307 determines the debtor’s location for choice-of-law purposes. If a transaction does not bear an appropriate relation to the forum State, then that State’s Article 9 will not apply, regardless of whether the transaction would be excluded by paragraph (3). Example 4: A Belgian governmental unit grants a security interest in its equipment to a Swiss secured party. The equipment is located in Belgium. A dispute arises and, for some reason, an action is brought in a New Mexico state court. Inasmuch as the transaction bears no “appropriate relation” to New Mexico, New Mexico’s UCC, including its Article 9, is inapplicable. See Section 1-105(1). New Mexico’s Section 9-109(c) on excluded transactions should not come into play. Even if the parties agreed that New Mexico law would govern, the parties’ agreement would not be effective because the transaction does not bear a “reasonable relation” to New Mexico. See Section 1-105(1). Conversely, Article 9 will come into play only if the litigation arises in a UCC jurisdiction or if a foreign choice-of-law rule leads a foreign court to apply the law of a UCC jurisdiction. For example, if issues concerning a security interest granted by a foreign airline to a New York bank are litigated overseas, the court may be bound to apply the law of the debtor’s jurisdiction and not New York’s Article 9. 10. Certain Statutory and Common-Law Liens; Interests in Real Property. With few exceptions (nonconsensual agricultural liens being one), this Article applies only to consensual security interests in personal property. Following former Section 9-104(b) and (j), paragraphs (1) and (11) of subsection (d) exclude landlord’s liens and leases and most other interests in or liens on real property. These exclusions generally reiterate the limitations on coverage (i.e., “by contract,” “in personal property and fixtures”) made explicit in subsection (a)(1). Similarly, most jurisdictions provide special liens to suppliers of many types of services and materials, either by statute or by common law. With the exception of agricultural liens, it is not necessary for this Article to provide general codification of this lien structure, which is determined in large part by local conditions and which is far removed from ordinary commercial financing. As under former Section 9- 104(c), subsection (d)(2) excludes these suppliers’ liens (other than agricultural liens) from this Article. However, Section 9-333 provides a rule for determining priorities between certain possessory suppliers’ liens and security interests covered by this Article. 11. Wage and Similar Claims. As under former Section 9-104(d), subsection (d)(3) excludes assignments of claims for wages and the like from this Article. These assignments present important social issues that other law addresses. The Federal Trade Commission has ruled that, with some exceptions, the taking of an assignment of wages or other earnings is an unfair act or practice under the Federal Trade Commission Act. See 16 C.F.R. Part 444. State statutes also may regulate such assignments. 12. Certain Sales and Assignments of Receivables; Judgments. In general this Article covers security interests in (including sales of) accounts, chattel paper, payment intangibles, and promissory notes. Paragraphs (4), (5), (6), and (7) of subsection (d) exclude from the Article certain sales and assignments of receivables that, by their nature, do not concern commercial financing transactions. These paragraphs add to the exclusions in former Section 9-104(f) analogous sales and assignments of payment intangibles and promissory notes. For similar reasons, subsection (d)(9) retains the exclusion of assignments of judgments under former Section 9-104(h) (other than judgments taken on a right to payment that itself was collateral under this Article). 13. Insurance. Subsection (d)(8) narrows somewhat the broad exclusion of interests in insurance policies under former Section 9-104(g). This Article now covers assignments by or to a health-care provider of “health-care- insurance receivables” (defined in Section 9-102). 14. Set-Off. Subsection (d)(10) adds two exceptions to the general exclusion of set-off rights from Article 9 under former Section 9-104(i). The first takes account of new Section 9-340, which regulates the effectiveness of a set-off against a deposit account that stands as collateral. The second recognizes Section 9-404, which affords the obligor on an account, chattel paper, or general intangible the right to raise claims and defenses against an assignee (secured party). 15. Tort Claims. Subsection (d)(12) narrows somewhat the broad exclusion of transfers of tort claims under former Section 9-104(k). This Article now applies to assignments of “commercial tort claims” (defined in Section 9-102) as well as to security interests in tort claims that constitute proceeds of other collateral (e.g., a right to payment for negligent destruction of the debtor’s inventory). Note that once a claim arising in tort has been settled and reduced to a contractual obligation to pay, the right to payment becomes a payment intangible and ceases to be a claim arising in tort. This Article contains two special rules governing creation of a security interest in tort claims. First, a description of collateral in a security agreement as “all tort claims” is insufficient to meet the requirement for attachment. See Section 9-108(e). Second, no security interest attaches under an after-acquired property clause to a tort claim. See Section 9-204(b). In addition, this Article does not determine whom the tortfeasor must pay to discharge its obligation. Inasmuch as a tortfeasor is not an “account debtor,” the rules governing waiver of defenses and discharge of an obligation by an obligor (Sections 9-403, 9-404, 9-405, and 9-406) are inapplicable to tort- claim collateral. 16. Deposit Accounts. Except in consumer transactions, deposit accounts may be taken as original collateral under this Article. Under former Section 9- 104(l), deposit accounts were excluded as original collateral, leaving security interests in deposit accounts to be governed by the common law. The common law is nonuniform, often difficult to discover and comprehend, and frequently costly to implement. As a consequence, debtors who wished to use deposit accounts as collateral sometimes were precluded from doing so as a practical matter. By excluding deposit accounts from the Article’s scope as original collateral in consumer transactions, subsection (d)(13) leaves those transactions to law other than this Article. However, in both consumer and non-consumer transactions, sections 9-315 and 9-322 apply to deposit accounts as proceeds and with respect to priorities in proceeds. This Article contains several safeguards to protect debtors against inadvertently encumbering deposit accounts and to reduce the likelihood that a secured party will realize a windfall from a debtor’s deposit accounts. For example, because “deposit account” is a separate type of collateral, a security agreement covering general intangibles will not adequately describe deposit accounts. Rather, a security agreement must reasonably identify the deposit accounts that are the subject of a security interest, e.g., by using the term “deposit accounts.” See Section 9-108. To perfect a security interest in a deposit account as original collateral, a secured party (other than the bank with which the deposit account is maintained) must obtain “control” of the account either by obtaining the bank’s authenticated agreement or by becoming the bank’s customer with respect to the deposit account. See Sections 9- 312(b)(1), 9-104. Either of these steps requires the debtor’s consent. This Article also contains new rules that determine which State’s law governs perfection and priority of a security interest in a deposit account (Section 9-304), priority of conflicting security interests in and set-off rights against a deposit account (Sections 9-327, 9-340), the rights of transferees of funds from an encumbered deposit account (Section 9-332), the obligations of the bank (Section 9-341), enforcement of security interests in a deposit account (Section 9-607(c)), and the duty of a secured party to terminate control of a deposit account (Section 9-208(b)). I.C. § 28-9-109 ID ST § 28-9-109 *This opportunity is not currently offered to persons residing in North Carolina.

Illinois

The Illinois Structured Settlement Protection Statute 215 ILCS 153/1 § 1. Short title. This Act may be cited as the Structured Settlement Protection Act. CREDIT(S) P.A. 93-502, § 1, eff. Jan. 1, 2004. HISTORICAL AND STATUTORY NOTES Title of Act: An Act concerning structured settlements. P.A. 93-502, approved August 11, 2003, effective January 1, 2004. 153/5. Definitions § 5. Definitions. For purposes of this Act: “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including maintenance. “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under item (5) of Section 10 of this Act. “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. “Periodic payments” includes both recurring payments and scheduled future lump sum payments. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, when: (1) the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this State; (2) the structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) the structured settlement agreement is expressly governed by the laws of this State. “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement. “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to such insured depository institution or an agent or successor in interest thereof or otherwise to enforce such blanket security interest against the structured settlement payment rights. “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; “transfer expenses” do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 153/10. Required disclosures to payee § 10. Required disclosures to payee. Not less than 3 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth all of the following: (1) the amounts and due dates of the structured settlement payments to be transferred; (2) the aggregate amount of the payments; (3) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the Applicable Federal Rate used in calculating the discounted present value; (4) the gross advance amount; (5) an itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (6) the net advance amount; (7) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 153/15. Approval of transfers of structured settlement payment rights § 15. Approval of transfers of structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (1) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (3) the transfer does not contravene any applicable statute or the order of any court or other government authority. 153/20. Effects of transfer of structured settlement payment rights § 20. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this Act: (1) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by the parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this Act; (3) neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between 2 or more transferees or assignees; and (4) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this Act. 153/25. Procedure for approval of transfers § 25. Procedure for approval of transfers. (a) No annuity issuer or structured settlement obligor may make payments on a structured settlement to anyone other than the payee or beneficiary of the payee without prior approval of the circuit court or responsible administrative authority. No payee or beneficiary of a payee of a structured settlement may assign in any manner the structured settlement payment rights without the prior approval of the circuit court or responsible administrative authority. (b) An application under this Act for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in the circuit court of the county in which an action was or could have been maintained or before any responsible administrative authority that approved the structured settlement agreement. 153/30. General provisions; construction § 30. General provisions; construction. (a) The provisions of this Act may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this Act by a payee who resides in this State shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this State. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (1) periodically confirming the payee’s survival, and (2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this Act. (e) Nothing contained in this Act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this Act is valid or invalid. (f) Compliance with the requirements set forth in Section 10 of this Act and fulfillment of the conditions set forth in Section 15 of this Act shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with those requirements or failure to fulfill those conditions. 153/35. Applicability § 35. Applicability. This Act shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the 30th day after the effective date of this Act; provided, however, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to that date is either effective or ineffective. *This opportunity is not currently offered to persons residing in North Carolina.

Indiana

IC 34-50-2 Chapter 2. Annuity Structured Settlements IC 34-50-2-1 Sec. 1. As used in this chapter, “interested party” refers to: (1) the payee; (2) the annuity issuer; (3) the structured settlement agreement obligor; (4) the payee’s counsel who assisted in the establishment of the structured settlement; (5) a dependent of the payee; or (6) a family member or relative who is acting as a caregiver for the payee. As added by P.L.219-2001, SEC.6. IC 34-50-2-2 Sec. 2. As used in this chapter, “structured settlement” means periodic payments of damages established by a settlement or a court judgment in resolution of a tort claim for personal injury. As added by P.L.219-2001, SEC.6. IC 34-50-2-3 Sec. 3. As used in this chapter, “transfer” means a: (1) sale; (2) assignment; (3) pledge; (4) hypothecation; or (5) any other form of alienation or encumbrance; of structured settlement payment rights made by a payee for consideration. As added by P.L.219-2001, SEC.6. IC 34-50-2-4 Sec. 4. As used in this chapter, “transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer agreement. As added by P.L.219-2001, SEC.6. IC 34-50-2-5 Sec. 5. A direct or indirect transfer of structured settlement payment rights is not effective, and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee, unless an Indiana court of competent jurisdiction has approved the transfer in a final order in accordance with sections 7 and 8 of this chapter. As added by P.L.219-2001, SEC.6. IC 34-50-2-6 Sec. 6. Not less than ten (10) days before the date on which a payee becomes obligated under a transfer agreement, the transferee shall provide to the payee and other interested parties a disclosure statement, in boldface type of not less than fourteen (14) points in size, that includes the following: (1) The amounts and due dates of the structured settlement payments to be transferred under the transfer agreement. (2) The aggregate amount of the payments disclosed under subdivision (1). (3) An estimate of the present fair market value of the future periodic payments under the structured settlement agreement. (4) The gross amount payable to the payee as consideration for the transfer of the structured settlement payments disclosed under subdivision (1). (5) An itemized list of all: (A) commissions; (B) fees; (C) costs; (D) expenses; and (E) charges; payable by the payee or deductible from the gross amount payable to the payee, as disclosed under subdivision (4). (6) The net amount payable to the payee after any deduction is made from the gross amount payable to the payee, as described in subdivision (5). (7) The quotient, expressed as a percentage, obtained by dividing the net amount payable to the payee, as disclosed under subdivision (6), by the estimate of the present fair market value of the future periodic payments, as disclosed under subdivision (3). (8) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee. As added by P.L.219-2001, SEC.6. IC 34-50-2-7 Sec. 7. An Indiana court of competent jurisdiction may approve a transfer of structured settlement payment rights only in a final order that is based on the express findings of the court. The express findings must include all of the following: (1) The consideration that the payee will receive for the transfer reasonably reflects the present fair market value of the future periodic payments under the structured settlement agreement. (2) The transfer is in the best interest of the payee. (3) The transfer will not materially impair the payee’s ability to discharge the payee’s obligations to the payee’s dependents. (4) If the transferee is the applicant, the transferee has provided to the payee a disclosure statement in accordance with section 6 of this chapter. As added by P.L.219-2001, SEC.6. IC 34-50-2-8 Sec. 8. (a) An application under this chapter for approval of a transfer of structured settlement payment rights must be filed in: (1) the Indiana court in which the underlying tort action was pending; or (2) the court of general jurisdiction in the Indiana county in which the payee resides. (b) The following apply to an application filed under subsection (a): (1) Upon filing of the application, the court shall set a date and time for a hearing on the application not earlier than twenty (20) days after the application is filed and shall notify the applicant of the date, time, and place of the hearing. The court shall give precedence to a hearing set under this section in accordance with Indiana Trial Rule 40. (2) The applicant shall file with the court and shall serve on: (A) all interested parties; (B) the annuity issuer; and C) the structured settlement obligor; in the manner prescribed in the rules of civil procedure for the service of process, a notice of the proposed transfer. (3) The notice required under subdivision (2) shall include: (A) a copy of the application; (B) a copy of the proposed transfer agreement, including the transferee’s: (i) name; (ii) address; and (iii) taxpayer identification number; (C) a copy of the disclosure statement provided by the transferee under section 6 of this chapter whenever the application is filed by a person other than the payee; (D) notification of the date, time, and place of the hearing on the application; and (E) notification that an interested party may support, oppose, or otherwise respond to the application, either in person or by counsel, by: (i) submitting to the court a written response containing the interested party’s support of, opposition to, or comments on the application; or (ii) participating in the hearing. (4) At the conclusion of the hearing on an application filed under subsection (a), the court may enter an order: (A) granting approval with or without modification; or (B) denying approval; of the transfer. If the court grants approval of the transfer, the court shall include in the order all of the express findings required under section 7 of this chapter. If the court denies the approval of the transfer, the court shall include in the order the reasons for the denial. (5) An order of the court made under subdivision (4) is a final and appealable order. As added by P.L.219-2001, SEC.6. IC 34-50-2-9 Sec. 9. (a) A payee who proposes to make a transfer of structured settlement payment rights does not: (1) incur a penalty; (2) forfeit an application fee or other payment; or (3) otherwise incur a liability to the proposed transferee; if the transfer is not approved by a court under section 7 of this chapter. (b) A provision of this chapter may not be waived. (c) This chapter does not: (1) authorize a transfer of structured settlement payment rights in contravention of applicable law; or (2) give effect to a transfer of structured settlement payment rights that is void under applicable law. As added by P.L.219-2001, SEC.6. IC 34-50-2-10 Sec. 10. After a transfer that has been approved in accordance with this chapter, a structured settlement obligor and an annuity issuer are immune from liability to a payee, or to a party other than a transferee who is claiming through the payee, for paying structured settlement payments to a transferee. As added by P.L.219-2001, SEC.6. IC 34-50-2-11 Sec. 11. Failure of a transferee of structured settlement payment rights to timely provide a true and complete disclosure statement to a payee under this chapter in connection with a direct or indirect transfer of structured settlement payment rights is an incurable deceptive act under IC 24-5-0.5. As added by P.L.219-2001, SEC.6. *This opportunity is not currently offered to persons residing in North Carolina.

Iowa

The Iowa Structured Settlement Protection Statute 682.1 Short title. This chapter shall be known and may be cited as the “Structured Settlement Protection Act”. 682.2 Definitions. As used in this chapter, unless the context otherwise requires: 1.”Annuity issuer” means an issuer that has issued an insurance contract used to fund periodic payments under a structured settlement. 2.”Dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony. 3.”Discounted present value” means the fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service. 4.”Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. 5.”Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional advisor. 6.”Interested parties” means, with respect to a structured settlement, the payee, a beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. 7.”Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 682.3, subsection 5. 8.”Payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights. 9.”Periodic payments” means both recurring payments and scheduled future lump sum payments. 10. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code. 11.”Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. 12.”Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. 13.”Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. 14.”Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. 15.”Structured settlement obligor” means, with respect to a structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. 16.”Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if any of the following exists: a. One of the following is true: (1)The payee is domiciled in this state. (2)The domicile or principal place of business of a structured settlement obligor or the annuity issuer is located in this state. b. The structured settlement agreement was approved by a court or responsible administrative authority in this state. c. The structured settlement agreement is expressly governed by the laws of this state. 17.”Terms of the structured settlement” means, with respect to a structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving the structured settlement. 18.”Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. “Transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. 19.”Transfer agreement” means the agreement providing for transfer of structured settlement payment rights. 20.”Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 21.”Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “Transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 682.3 Required disclosures to payee. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth all of the following: 1.The amounts and due dates of the structured settlement payments to be transferred. 2.The aggregate amount of the structured settlement payments. 3.The discounted present value of the payments to be transferred which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the applicable federal rate used in calculating the discounted present value. 4.The gross advance amount. 5.An itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements. 6.The net advance amount. 7.The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee. 8.A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the agreement is signed by the payee. 682.4 Approval of transfers of structured settlement payment rights. 1. A transfer of structured settlement payment rights shall not be effective and a structured settlement obligor or annuity issuer shall not be required to make any payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority regarding all of the following: a. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. b. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing. c. The transfer does not contravene any applicable statute or the order of any court or other government authority. 2. If the structured settlement agreement or transfer agreement includes a provision requiring the terms of the structured settlement agreement or transfer agreement to remain confidential, the court or responsible administrative authority shall conduct in camera proceedings relating to the approval of the transfer agreement and shall not include any financial terms from the structured settlement agreement or the transfer agreement in the order required under subsection 1. 682.5Effects of transfer of structured settlement payment rights. 1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. 2. The transferee shall be liable to the structured settlement obligor and the annuity issuer for all of the following: a. If the transfer contravenes the terms of the structured settlement, any taxes incurred by the structured settlement obligor and the annuity issuer as a consequence of the transfer. b. Any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this chapter. 3. An annuity issuer and the structured settlement obligor shall not be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees. 4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. 682.6 Procedure for approval of transfers. 1. An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. 2. Not less than twenty days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 682.4, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization. All of the following shall be included with the notice: a. A copy of the transferee’s application. b. A copy of the transfer agreement. c. A copy of the disclosure statement required under section 682.3. d. A listing of each of the payee’s dependents, together with each dependent’s age. e. Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority, or by participating in the hearing. f. Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall not be less than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. 3.If a structured settlement agreement or transfer agreement includes a provision requiring the terms of the structured settlement agreement or transfer agreement to remain confidential, the financial terms of the structured settlement agreement and the transfer agreement shall be made available to the court or responsible administrative authority for purposes of any in camera proceedings, but shall not be disclosed in the copies of the transfer agreement and disclosure statement filed as a part of the public record. Section History: Recent form 2001 Acts, ch 85, §6, 8 682.7General provisions–construction–penalties. 1.The provisions of this chapter shall not be waived by a payee. 2.A transfer agreement entered into on or after the thirtieth day after July 1, 2001, by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined under the laws of this state. A transfer agreement shall not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. 3.A transfer of structured settlement payment rights shall not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for both of the following: a. Periodically confirming the payee’s survival. b. Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. 4. A payee who proposes to make a transfer of structured settlement payment rights shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this chapter. 5. This chapter shall not be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to July 1, 2001, is valid or invalid. 6. Compliance with the requirements set forth in section 682.3 and fulfillment of the conditions set forth in section 682.4 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. *This opportunity is not currently offered to persons residing in North Carolina.

Kansas

The Kansas Structured Settlement Protection Statute House Bill No. 2160 AN ACT concerning structured settlements; enacting the structured settlement protection act”. Be it enacted by the Legislature of the State of Kansas: Section 1. For purposes of this act: (a) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (b) “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. (c) “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service. (d) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. (e) “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser. (f) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor and any other party that has continuing rights or obligations under such structured settlement. (g) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subsection (e) of section 2 and amendments thereto. (h) “Payee” means an individual who receives tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. (i) “Periodic payments” include both recurring payments and scheduled future lump sum payments. (j) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the United States internal revenue code. (k) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (l) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. (m) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim . (n) “Structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement. (o) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (p) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (1) The payee is domiciled in this state or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (2) the structured settlement agreement was approved by a court or responsible administrative authority in this state; or (3) the structured settlement agreement is expressly governed by the laws of this state. (q) “Terms of the structured settlement” include the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement. (r) “Transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. Transfer does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. (s) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. (t) “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions and other payments to a broker or other intermediary. Transfer expenses do not include any preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (u) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Sec. 2. The transferee shall provide to the payee a separate disclosure statement not less than three days prior to the date on which a payee signs a transfer agreement. Such disclosure statement shall set forth in bold type no smaller than 14 points: (a) The amounts and due dates of the structured settlement payments to be transferred. (b) The aggregate amount of such payments. (c) The discounted present value of the payments to be transferred, which shall be identified as the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities, and the amount of the applicable federal rate used in calculating such discounted present value. (d) The gross advance amount. (e) An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements. (f) The net advance amount. (g) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee. (h) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Sec. 3. (a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that the: (1) Transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (3) transfer does not contravene any applicable statute or the order of any court or other government authority. Sec. 4. Following a transfer of structured settlement payment rights under this act: (a) The structured settlement obligor and the annuity issuer shall be discharged and released from any and all liability for the transferred payments as to all parties except the transferee. (b) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (1) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (2) for any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this act. (c) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees. (d) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this act. Sec. 5. (a) An application for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in: (1) The county in which the payee resides; (2) the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business; or (3) any court or before any responsible administrative authority which approved the structured settlement agreement. (b) The transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 3 and amendments thereto. Such notice shall include: (1) A copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under section 2 and amendments thereto; (4) a listing of each of the payee’s dependents, together with each dependent’s age; (5) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) notification of the time and place of the hearing and notification of the manner in which and the time, which shall not be less than 15 days after service of the transferee’s notice, by which written responses to the application must be filed in order to be considered by the court or responsible administrative authority. Sec. 6. (a) The provisions of this act may not be waived by any payee. (b) Any transfer agreement entered into by a payee who resides in this state on or after the effective date of this act shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) Periodically confirming the payee’s survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this act. (e) No provision of this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that the validity of any transfer under a transfer agreement entered into prior to the effective date of this act. (f) Compliance with the requirements of section 2, and amendments thereto, and fulfillment of the conditions of section 3, and amendments thereto, shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights. Neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. Sec. 7. (A) Sections 1 through 7, and amendments thereto, shall be known as and may be cited as the structured settlement protection act. (B) NO PROVISION OF THIS ACT SHALL APPLY TO ANY SETTLEMENT OF ANY CLAIM FOR OR AWARD OF WORKERS COMPENSATION. Sec. 8. This act shall take effect and be in force from and after its publication in the statute book. *This opportunity is not currently offered to persons residing in North Carolina.

Kentucky

The Kentucky Structured Settlement Protection Statute House Bill No. 2614 454.430 Definitions for KRS 454.430 to 454.435. As used in KRS 454.430 to 454.435: (1) “Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement; (2) “Payee” means an individual who is receiving tax-free damage payments under a structured settlement and who wants to make a transfer of payment rights under the structured settlement agreement; (3) “Protected parties” means, with respect to any structured settlement, the payee, any named beneficiary designated in the annuity contract or structured settlement to receive payments following the payee’s death, or, if the named beneficiary is a minor, the named beneficiary’s parent or guardian, the annuity issuer, and the structured settlement obligor; (4) “Qualified assignment agreement” means an agreement providing for a qualified assignment that meets the requirements of Section 130 of the Internal Revenue Code, 26 U.S.C. sec. 130, as amended from time to time; (5) “Settled claim” means the original tort claim resolved by a structured settlement; (6) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim; (7) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (8) “Structured settlement payment rights” means rights to receive periodic payments, including lump sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, where: (a) The payee or any other protected party is domiciled in this state; or (b) The settled claim was pending before the courts of this state when the structured settlement was reached; (9) “Transfer” means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration; and (10) “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 409, sec. 1, effective July 15, 1998. 454.431 Requirement for court approval of transfer of structured settlement payment rights — Express findings that are required. No transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of any transfer of structured settlement payment rights unless the transfer has been approved in advance in an order of a court of competent jurisdiction, based on the court’s express findings that: (1) The transfer complies with the requirements of KRS 454.430 to 454.435 and does not contravene other applicable law; (2) Not less than ten (10) days prior to the date on which the payee entered into the transfer agreement, the transferee has provided to the payee a disclosure statement in bold type, no smaller than fourteen (14) point, setting forth: (a) The amounts and due dates of the structured settlement payments to be transferred; (b) The aggregate amount of the payments; (c) The discounted present value of the payments, together with the discount rate or rates used in determining the discounted present value; (d) The gross amount payable to the payee in exchange for the payments; (e) An itemized listing of all brokers’ commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; and (f) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of any breach of the transfer agreement by the payee; (3) The payee has established that the transfer is necessary to enable the payee to avoid imminent financial hardship; (4) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and had filed a copy of the notice with the court; and (5) The payee has consented in writing to the transfer. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 409, sec. 2, effective July 15, 1998. 454.435 Jurisdiction of the Circuit Court — Notice and hearing requirements — Nonwaiverability of KRS 454.430 to 454.435. (1) The Circuit Court in the county in which the original action was or could have been filed, or the county where the applicant resides, shall have jurisdiction over any application for approval of a transfer of structured settlement payment rights under KRS 454.431. (2) Not less than twenty (20) days prior to the scheduled hearing on any application for court approval of a transfer of structured settlement payment rights under KRS 454.431, the payee or transferee shall file with the court and serve on all protected parties a notice of the proposed transfer and the application for its approval, including in the notice: (a) A copy of the transferee’s application to the court; (b) A copy of the disclosure statement required under KRS 454.431(2); and (c) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than ten (10) days after service of the transferee’s notice, in order to be considered by the court. (3) The provisions of KRS 454.430 to 454.435 may not be waived. Effective: July 15, 1998 History: Created 1998 Ky. Acts ch. 409, sec. 3, effective July 15, 1998. *This opportunity is not currently offered to persons residing in North Carolina.

Louisiana

The Louisiana Structured Settlement Protection Statute R.S. 9:2715 §2715. Transfer of structured settlement rights A. As used in this Section, the following terms shall mean: (1) “Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement. (2) “Discounted present value” means the fair present value of future payments, as determined by discounting payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (3) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser: (a) Who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; (b) Who is not affiliated with or compensated by the transferee of the transfer; and (c) Whose compensation is not affected by whether a transfer occurs. (4) “Interested parties” means the payee, each beneficiary designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under a structured settlement. (5) “Payee” means an individual who receives damage payments that are not subject to income taxation under a structured settlement and proposes to make a transfer of payment rights. (6) “Structured settlement” means an arrangement for periodic payment of damages for personal injury established by a settlement or judgment in resolution of a tort claim. “Structured settlement” does not include an arrangement for periodic payment of damages for personal injury established by a judgment of confession. (7) “Structured settlement agreement” means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (8) “Structured settlement obligor” means a party who has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. (9) “Structured settlement payment rights” means the rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if: (a) The transferee or payee is domiciled in this state; (b) The structured settlement agreement was approved by a court in this state; or (c) The settled claim was pending before a court of this state when the parties entered into the structured settlement agreement. (10) “Terms of the structured settlement” includes the terms of the structured settlement agreement, the annuity contract, a qualified assignment, and an order or approval of a court or responsible administrative authority authorizing or approving a structured settlement. (11) “Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration. (12) “Transfer agreement” means the agreement providing for the transfer of structured settlement payment rights from a payee to a transferee. (13) “Transferee” means a person who is receiving or will receive structured settlement payment rights from a payee. B. The direct or indirect transfer of structured settlement payment rights shall not be effective nor shall a structured settlement obligor or annuity issuer be required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless all of the following requirements are met: (1) The transfer of structured settlement payment rights has been authorized in advance by ex parte order of a court of competent jurisdiction which had jurisdiction over the original tort or workers’ compensation claim resolved by the structured settlement or in which the original tort or workers’ compensation claim could have been brought. At least twenty days prior to the issuance of the order the transferee shall file a petition for transfer with the caption “Ex Parte Petition for Transfer of Structured Settlement Rights by (name of Transferee).” (2) The transferee shall include with the petition, a copy of the transferee’s application, a copy of the transfer agreement, and a disclosure statement to the payee in bold type, no smaller than 14 points, acknowledged by the payee specifying the following: (a) The amounts and due dates of the structured settlement payments to be transferred. (b) The aggregate amount of the payments. (c) The discounted present value of the payments, together with the discount rate used in determining the discounted present value. (d) The gross amount payable to the payee in exchange for the payments and an itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee. (e) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in Subparagraph (d) of this Paragraph. (f) The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments, which shall be disclosed in the following statement: “The net amount that you will receive from us in exchange for your future structured settlement payments represents ___% of the estimated current value of the payments”. (g) The effective annual interest rate, which rate shall be disclosed in the following statement: “Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of ___% per year”. (h) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee. (i) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor. (j) The transfer agreement provides that if the payee is domiciled in this state, any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper place of venue to bring any cause of action arising out of a breach of the agreement. C. The court shall enter an order approving the transfer based on a finding of all of the following: (1) That the payee received independent professional advice regarding the legal, tax, and financial implications of the transfer. (2) That the transferee disclosed to the payee the discounted present value. D. All costs of court for filing the petition for transfer of structured settlement rights shall be paid by the transferee. E. If a transfer of structure settlement payment rights has been authorized under this Section, neither the annuity issuer nor the structured settlement obligor shall have any liability to the payee or to any other party for any payment made to the transferee in accordance with the authorization. F. The provisions of this Section may not be waived. G. This Section shall not be construed to authorize a transfer of structured settlement payment rights in contravention of applicable law or to give effect to a transfer of structured settlement payment rights that is invalid under applicable law. H. A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent that the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. I. This Section shall not be construed to authorize any transfer of workers’ compensation payment rights in contravention of applicable law or to give effect to any transfer of workers’ compensation or other payment rights that is invalid under applicable law. Acts 2001, No. 597,§ 1. *This opportunity is not currently offered to persons residing in North Carolina.

Maine

The Maine Structured Settlement Protection Statute MAINE STATUTES TITLE 24-A §2241. Definitions As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings. [1999, c. 268, §2 (new).] 1. Annuity issuer. “Annuity issuer” means an insurer that has issued an insurance contract used to fund periodic payments under a structured settlement. [1999, c. 268, §2 (new).] 2. Applicable law. “Applicable law” means: A. Federal law; [1999, c. 268, §2 (new).] B. The laws of this State, including principles of equity applied in the courts of this State; and [1999, c. 268, §2 (new).] C. The laws of any other jurisdiction: (1) That is the domicile of the payee or any other interested party; (2) Under whose laws a structured settlement agreement was approved by a court or responsible administrative authority; or (3) In whose courts a settled claim was pending when the parties entered into a structured settlement agreement. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] 3. Dependents. “Dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony. [1999, c. 268, §2 (new).] 4. Discounted present value. “Discounted present value” means the fair present value of future payments as determined by discounting such payments to the present using the applicable federal rate for determining the present value of an annuity most recently published by the United States Internal Revenue Service. [1999, c. 268, §2 (new).] 5. Favorable tax determination. “Favorable tax determination,” with respect to a proposed transfer of structured settlement payment rights, means any of the following authorities that definitively establishes that the federal income tax treatment of the structured settlement for the parties, other than the payee, to the structured settlement agreement and any qualified assignment agreement will not be affected by that transfer: A. A provision of the United States Internal Revenue Code or a United States Treasury regulation adopted pursuant to the code; [1999, c. 268, §2 (new).] B. A revenue ruling or revenue procedure issued by the United States Internal Revenue Service; [1999, c. 268, §2 (new).] C. A private letter ruling by the United States Internal Revenue Service with respect to that transfer; or [1999, c. 268, §2 (new).] D. A decision by the United States Supreme Court or a decision of a lower federal court in which the United States Internal Revenue Service has acquiesced. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] 6. Federal hardship standard. “Federal hardship standard” means a federal standard applicable to transfers of structured settlement payment rights based on findings of a court or responsible administrative authority regarding the payee’s needs, as contained in the United States Internal Revenue Code or in a United States Treasury regulation adopted pursuant to the code. [1999, c. 268, §2 (new).] 7. Independent professional advice. “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional advisor: A. Who is engaged by a payee to render advice concerning the legal, tax and financial implications of a transfer of structured settlement payment rights; [1999, c. 268, §2 (new).] B. Who is not in any manner affiliated with or compensated by the transferee of that transfer; and [1999, c. 268, §2 (new).] C. Whose compensation for rendering advice is not affected by whether a transfer occurs or does not occur. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] 8. Interested parties. “Interested parties” means the payee, any beneficiary designated under the annuity contract to receive payments following the payee’s death and any other party that has continuing rights or obligations under the contract. For purposes of this chapter, “interested parties” does not include the structured settlement obligor or the annuity issuer. [1999, c. 268, §2 (new).] 9. Payee. “Payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights under that settlement. [1999, c. 268, §2 (new).] 10. Qualified assignment agreement. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code, Title 26. [1999, c. 268, §2 (new).] 11. Responsible administrative authority. “Responsible administrative authority” means any government authority vested by law with exclusive jurisdiction over the settled claim resolved by a structured settlement. [1999, c. 268, §2 (new).] 12. Settled claim. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. [1999, c. 268, §2 (new).] 13. Structured settlement. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. [1999, c. 268, §2 (new).] 14. Structured settlement agreement. “Structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. [1999, c. 268, §2 (new).] 15. Structured settlement obligor. “Structured settlement obligor” means the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. [1999, c. 268, §2 (new).] 16. Structured settlement payment rights. “Structured settlement payment rights” means rights to receive periodic payments, including lump sum payments, under a structured settlement, whether from the settlement obligor or the annuity issuer, when: A. The payee, structured settlement obligor, annuity issuer or any other interested party is domiciled in this State; [1999, c. 268, §2 (new).] B. The structured settlement agreement was approved by a court or responsible administrative authority in this State; or [1999, c. 268, §2 (new).] C. The settled claim was pending before the courts of this State when the parties entered into the structured settlement agreement. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] 17. Terms of structured settlement. “Terms of a structured settlement” means the terms of a structured settlement agreement, an annuity contract, any qualified assignment agreement and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving the structured settlement. [1999, c. 268, §2 (new).] 18. Transfer. “Transfer” means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance made by a payee for consideration. [1999, c. 268, §2 (new).] 19. Transfer agreement. “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. [1999, c. 268, §2 (new).] 20. Transferee. “Transferee” means a person that becomes entitled to receive structured settlement payment rights as a result of a transfer agreement. [1999, c. 268, §2 (new).] Section History: PL 1999, Ch. 268, §2 (NEW) 2243. Transfer of structured settlement payment rights 1. Application. This section applies to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the effective date of this section. This section may not be construed to imply that any transfer under a transfer agreement reached prior to the effective date of this section is effective. [1999, c. 268, §2 (new).] 2. Requirements for transfer. A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or a responsible administrative authority, based on express findings by that court or responsible administrative authority that: A. The transfer complies with the requirements of this chapter and does not contravene other applicable law; [1999, c. 268, §2 (new).] B. Not less than 10 days prior to the date on which the payee first incurred any obligation with respect to the transfer, the transferee provided to the payee a disclosure statement in bold type, no smaller than 14 points, setting forth: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of those payments; (3) The discounted present value of those payments together with the discount rate used in determining that discounted present value; (4) The gross amount payable to the payee in exchange for the payments; (5) An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (6) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses and charges described in subparagraph (5); (7) The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments; and (8) The amount of any penalty and the aggregate amount of any liquidated damages, inclusive of penalties, payable by the payee in the event of any breach of the transfer agreement by the payee; [1999, c. 268, §2 (new).] C. The payee has established that the transfer is necessary to enable the payee, the payee’s dependents or both to avoid imminent financial hardship, and the transfer is not expected to subject the payee, the payee’s dependents or both to undue financial hardship in the future, except that if a federal hardship standard was in effect at the time the payee and the transferee entered into the transfer agreement, in lieu of the foregoing finding the court or responsible administrative authority must make an express finding that the transfer qualifies under that federal hardship standard; [1999, c. 268, §2 (new).] D. The payee has received independent professional advice regarding the legal, tax and financial implications of the transfer; [1999, c. 268, §2 (new).] E. If the transfer would contravene the terms of the structured settlement: (1) The transfer has been expressly approved in writing by: (a) Each interested party; and (b) Any court or government authority, other than the court or responsible administrative authority from which authorization of the transfer is sought under this chapter, that previously approved the structured settlement; and (2) Signed originals of all approvals required under subparagraph (1) have been filed with the court or responsible administrative authority from which authorization of the transfer is sought under this chapter and originals or copies have been furnished to all interested parties; [1999, c. 268, §2 (new).] F. If the transfer would contravene the terms of the structured settlement, the transfer agreement does not have adverse tax consequences to the structured settlement obligor or annuity issuer. The structured settlement obligor or annuity issuer must demonstrate to the court or responsible administrative authority that the transfer agreement, if approved, will have adverse tax consequences; and [1999, c. 268, §2 (new).] G. The transferee has given written notice of the transferee’s name, address and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of that notice with the court or responsible administrative authority. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] Section History: PL 1999, Ch. 268, §2 (NEW). Statute Search List of Titles Maine Law Disclaimer Revisor’s Office Maine Legislature Title 24-A: MAINE INSURANCE CODE Chapter 24-A: PROTECTION OF BENEFICIARIES OF STRUCTURED SETTLEMENTS (HEADING: PL 1999, c. 268, @2 (new)) §2244. Jurisdiction; filing 1. Jurisdiction. The Superior Court has nonexclusive jurisdiction over any application for authorization under this chapter of a transfer of structured settlement payment rights. [1999, c. 268, §2 (new).] 2. Filing. Not less than 30 days prior to the scheduled hearing on any application for authorization of a transfer of structured settlement payment rights under this chapter, the transferee shall file with the court or responsible administrative authority and serve on any other government authority that previously approved the structured settlement, all interested parties, the structured settlement obligor and annuity issuer a notice of the proposed transfer and the application of its authorization, including in that notice: A. A copy of the transferee’s application; [1999, c. 268, §2 (new).] B. A copy of the transfer agreement; [1999, c. 268, §2 (new).] C. A copy of the disclosure statement required under section 2243, subsection 2, paragraph B; [1999, c. 268, §2 (new).] D. Notification that any interested party, structured settlement obligor or annuity issuer is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and [1999, c. 268, §2 (new).] E. Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which may be not less than 30 days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. [1999, c. 268, §2 (new).] [1999, c. 268, §2 (new).] §2245. Prohibitions 1. Prohibition against waiver. The provisions of this chapter may not be waived. [1999, c. 268, §2 (new).] 2. Prohibition against penalty. A payee who proposes to make a transfer of structured settlement payment rights may not incur a penalty, forfeit an application fee or other payment or otherwise incur any liability to the proposed transferee based on the failure of that transfer to satisfy the conditions of section 2243. [1999, c. 268, §2 (new).] §2246. Construction Nothing contained in this chapter may be construed to authorize a transfer of structured settlement payment rights in contravention of applicable law or to give effect to a transfer of structured settlement payment rights that is invalid under applicable law. [1999, c. 268, §2 (new).] *This opportunity is not currently offered to persons residing in North Carolina.

Maryland

The Maryland Structured Settlement Protection Statute MARYLAND CODE COURTS AND JUDICIAL PROCEEDINGS Current through 2001 § 5-1101. (a) In this subtitle the following words have the meanings indicated. (b) “Discounted present value” means the fair present value of future payments, as determined by discounting payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (c) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser: (1) Who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; (2) Who is not affiliated with or compensated by the transferee of the transfer; and (3) Whose compensation is not affected by whether a transfer occurs. (d) “Interested parties” means the payee, each beneficiary designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under a structured settlement. (e) “Payee” means an individual who receives damage payments that are not subject to income taxation under a structured settlement and proposes to make a transfer of payment rights. (f) “Responsible administrative authority” means a government authority vested with exclusive jurisdiction over the settled claim resolved by a structured settlement. (g) (1) “Structured settlement” means an arrangement for periodic payment of damages for personal injury established by a settlement or judgment in resolution of a tort claim. (2) “Structured settlement” does not include an arrangement for periodic payment of damages for personal injury established by a judgment by confession. (h) “Structured settlement agreement” means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (i) “Structured settlement obligor” means a party who has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. (j) “Structured settlement payment rights” means the rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if: (1) An interested party is domiciled in this State; (2) The structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) The settled claim was pending before a court of this State when the parties entered into the structured settlement agreement. (k) “Terms of the structured settlement” includes the terms of the structured settlement agreement, the annuity contract, a qualified assignment, and an order or approval of a court or responsible administrative authority authorizing or approving a structured settlement. (l) “Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration. (m) “Transfer agreement” means the agreement providing for the transfer of structured settlement payment rights from a payee to a transferee. § 5-1102. (a) A direct or indirect transfer of structured settlement payment rights to a transferee is effective as provided in this subtitle. (b) A structured settlement obligor or annuity issuer may not make any payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer is authorized in an order of a court based on a finding that: (1) The transfer is necessary, reasonable, or appropriate; (2) The transfer is not expected to subject the payee, the payee’s dependents, or both, to undue or unreasonable financial hardship in the future; (3) The payee received independent professional advice regarding the legal, tax, and financial implications of the transfer; and (4) The transferee disclosed to the payee the discounted present value. § 5-1103. (a) The circuit court that has jurisdiction over an interested party or the circuit court for the county in which the original claim occurred shall have nonexclusive jurisdiction over an application for a transfer of structured settlement payment rights under § 5-1102 of this subtitle. (b) A transferee shall file with the court and serve on the interested parties at least 20 days before the hearing on the application, a notice of the proposed transfer and an application for its authorization, including: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; and (3) Notification: (i) Of the time and place of the hearing; and (ii) That each interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, in person or by counsel, by submitting written comments to the court or by participating in the hearing. § 5-1104. If a transfer of structure settlement payment rights has been authorized under this subtitle, neither the annuity issuer nor the structured settlement obligor shall have any liability to the payee or to any other party for any payment made to the transferee in accordance with the authorization. § 5-1105. (a) The provisions of this subtitle may not be waived. (b) Nothing contained in this subtitle may be construed to authorize a transfer of structured settlement payment rights in contravention of applicable law or to give effect to a transfer of structured settlement payment rights that is invalid under applicable law. *This opportunity is not currently offered to persons residing in North Carolina.

Massachusetts

The Massachusetts Structured Settlement Protection Statute SECTION 1. The General Laws are hereby amended by adding after chapter 231B the following chapter:- CHAPTER 231C. STRUCTURED SETTLEMENT CONTRACTS. Section 1. For the purposes of this chapter the following words shall have the following meanings unless the context otherwise requires: “Annuity issuer”, an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement. “Applicable law”, any of the following, as applicable in interpreting the terms of a structured settlement: (1) the laws of the United States; (2) the laws of the commonwealth, including principles of equity applied in the courts of the commonwealth; and (3) the laws of any other jurisdiction; (i) that is the domicile of the payee or any other interested party; (ii) under whose law a structured settlement agreement was approved by a court or responsible administrative authority; or (iii) in whose courts a settled claim was pending when the parties entered into a structured settlement agreement. “Applicable federal rate”, the most recently published applicable rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service pursuant to section 7520 of the United States Internal Revenue Code. “Assignee”, a party that acquires structured settlement payment rights directly or indirectly from a transferee of such rights. “Dependents”, a payee’s spouse and minor children and all other family members and other persons from whom the payee is legally obligated to provide support, including spousal maintenance. “Discount/finance charge”, the sum of all charges payable directly or indirectly from assigned structured settlement payments and imposed directly or indirectly by the transferee as an incident to a transfer of structured settlement payment rights, including: (1) interest charges, discounts and other compensation for the time value of money; (2) all application, origination, processing, underwriting, closing, filing and notary fees and all similar charges, however denominated; and (3) all charges for commissions or brokerage, irrespective of the identity of the party to whom such charges are paid or payable. The term discount/finance charge shall not include any fee or other obligation incurred by a payee in obtaining independent professional advice concerning a transfer of structured settlement payment rights. “Discounted present value”, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate as the discount rate. “Independent professional advice”, advice of an attorney, certified public accountant, actuary, or other licensed professional advisor: (1) who is engaged by a payee to render advice concerning the legal, tax and financial implications of a transfer of structured settlement payment rights; (2) who is not in any manner affiliated with or compensated by the transferee of the transfer; and (3) whose compensation for providing the advice is not affected by whether or not a transfer occurs. “Interested party”, with respect to any structured settlement, the following: (1) the payee; (2) a beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death or, if such designated beneficiary is a minor, the designated beneficiary’s parent or guardian; (3) the annuity issuer; (4) the structured settlement obligor; and (5) any other party that has continuing rights or obligations under the structured settlement. “Payee”, an individual who is receiving tax free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. “Qualified assignment agreement”, an agreement providing for a qualified assignment as provided by the United States Internal Revenue Code, Title 26, section 130. “Responsible administrative authority”, with respect to a structured settlement, a government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. “Settled claim”, the original tort claim or workers’ compensation claim resolved by a structured settlement. “Structured settlement”, an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. “Structured settlement agreement”, the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. “Structured settlement obligor”, the party that has the obligation to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. “Structured settlement payment rights”, rights to receive periodic payments, including lump sum payment under a structured settlement, whether from the settlement obligor or the annuity issuer, where: (1) the payee or any other interested party is domiciled in the state; (2) the structured settlement agreement was approved by a court or responsible administrative authority in the commonwealth; or (3) the settled claim was pending before a court of the commonwealth when the parties entered into the structured settlement agreement. “Terms of the structured settlement”, the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement and an order or approval of a court, responsible administrative authority or other government authority authorizing or approving the structured settlement. “Transfer”, a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration. “Transfer agreement”, the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. “Transferee”, a person who is receiving or will receive structured settlement payment rights resulting from a transfer. Section 2. (a) No direct or indirect transfer of structured settlement payment rights shall be effective, and no structured settlement obligor or annuity issuer shall be required to make a payment directly or indirectly to a transferee of structured settlement payment rights, unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or responsible administrative authority, such as an administrative law judge, based on the court’s or responsible administrative authority’s written express findings that: (1) the transfer complies with the requirements of this chapter and will not contravene other applicable law; (2) not less than ten days before the date on which the payee first incurred an obligation with respect to the transfer, the transferee has provided to the payee a disclosure statement in bold type, no smaller than 14 points, specifying: (i) the amounts and due dates of the structures settlement payments to be transferred; (ii) the aggregate amount of the payments; (iii) the discounted present value of the payments, together with the discount rate used in determining the discounted present value; (iv) the gross amount payable to the payee in exchange for the payments; (v) an itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (vi) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses and charges described in clause (v); (vii) the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments, which shall be disclosed in the statement as follows: “The net amount that you will receive from us in exchange for your future structured settlement payments represent ___% of the estimated current value of the payments”; (viii) the effective annual interest rate, which rate shall be disclosed in the statement as follows: “Based on the net amount that you receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of ___% per year”; and (ix) the amount of any penalty and the aggregate amount of any liquidated damages, including penalties payable by the payee in the event of a breach of the transfer agreement by the payee; (3) the payee has established that the transfer is in the best interests of the payee and the payee’s dependents; (4) the payee has received, or waived the right to receive independent professional advice regarding the legal, tax and financial implications of the transfer; (5) the transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court or responsible administrative authority; (6) the transfer agreement provides that if the payee is domiciled in the commonwealth, any disputes between the parties shall be governed, interpreted, construed, and enforced in accordance with the laws of the commonwealth and that the domicile state of the payee is the proper place of venue to bring any cause of action arising out of a breach of the agreement; and (7) the court or responsible administrative agency has made a determination that the net amount payable to the payee is fair, just and reasonable under the circumstances then existing. (b) The transfer agreement shall also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in the commonwealth. If the transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court or responsible administrative authority may grant, deny or impose conditions upon the proposed transfer as the court or responsible administrative authority deems just and proper under the facts and circumstances in accordance with established principles of law. Any order approving the transfer shall require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney’s fees arising from compliance by the issuer or obligor with the order of the court or responsible administrative authority. (c) A provision in a transfer agreement giving a transferee power to confess judgment against a payee shall be unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. (d) In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in the commonwealth, the structured settlement obligor shall disclose in writing to the claimant or the claimant’s legal representative all of the following information that is not otherwise specified in the structured settlement agreement: (1) the amounts and due dates of the periodic payments to be made under the structured settlement agreement; in the case of payments that will be subject to periodic percentage increases, the amounts of future payments may be disclosed by identifying the base payment amount, the amount and timing of scheduled increases, and the manner in which increases will be compounded; (2) the amount of the premium payable to the annuity issuer; (3) the discounted present value of all periodic payments that are not life-contingent, together with the discount rate used in determining the discounted present value; (4) the nature and amount of any cost that may be deducted from any of the periodic payments; (5) where applicable, that any transfer of the periodic payments is prohibited by the terms of the structured settlement and may otherwise be prohibited or restricted under applicable law; and (6) that any transfer of the periodic payments by the claimant may subject the claimant to serious adverse tax consequences. (e) The district court shall have nonexclusive jurisdiction over an application for authorization of a transfer of structured settlement payment rights. (f) Not less than 20 days before the scheduled hearing on an application for authorization of a transfer of structured settlement payment rights, the transferee shall file with the court or responsible administrative authority, any other government authority that previously approved the structured settlement, and all interested parties a notice of the proposed transfer and the application for its authorization. The notice shall include: (1) a copy of the transferee’s application to the court or responsible administrative authority; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under this section; (4) notification that an interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (5) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application shall be filed, in order to be considered by the court or responsible administrative authority. Written responses to the application shall be filed within 15 days after service of the transferee’s notice. Section 3. (a) The provisions of sections 2 to 4, inclusive, shall not be waived. (b) No payee who proposes to make a transfer of structured settlement payment rights shall incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee based on the failure of the transfer to satisfy the conditions of section 2. Section 4. (a) If in connection with a transfer of structured settlement payment rights, a transferee has violated the discount/finance charge stipulation, neither the transferee nor any assignee shall be entitled to collect from the transferred payment rights, or from the payee, any amount in excess of the net advance amount, and the payee shall have a right to recover from the transferee or any assignee: (1) a refund of any excess amounts previously received by the transferee or any assignee; (2) a penalty in an amount determined by the court; and (3) reasonable costs and attorney’s fees. (b) If in connection with a transfer of structured settlement payment rights, the transferee has violated the disclosure requirements in section 3, the transferee and any assignees shall be liable to the payee for: (1) a penalty in an amount determined by the court; and (2) reasonable costs and attorney’s fees. (c) A transferee or assignee shall not be liable for a penalty in any action brought under this section if the transferee or assignee establishes by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the transferee’s maintenance of procedures reasonably designed to avoid such errors. (d) No action may be brought under this section if: (1) in the case of a violation of the discount/finance charge stipulation, more than one year after the due date of the last transferred structured settlement payment; and (2) in the case of the disclosure requirements of section 2, more than one year after the due date of the first transferred structured settlement payment. (e) If the attorney general has reason to believe that any transferee has violated this chapter, the attorney general may bring a civil action for injunctive relief and such penalties and other relief as may be appropriate to secure compliance with this chapter. Section 5. Nothing contained in this chapter shall be construed to authorize any transfer of workers’ compensation payment rights in contravention of applicable law or to give effect to any transfer of workers’ compensation or other payment rights that is invalid under applicable law. SECTION 2. This act shall not apply to transfers made on or before the effective date of this act. Approved January 12, 2001. *This opportunity is not currently offered to persons residing in North Carolina.

Michigan

The Michigan Structured Settlement Protection Statute M.C.L.A. 691.1301 Michigan Compiled Laws Annotated Currentness 691.1301. Short title Sec. 1. This act shall be known and may be cited as the “revised structured settlement protection act”. 691.1302. Definitions Sec. 2. As used in this act: (a) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (b) “Dependent” means a payee’s spouse, minor child, or any other person for whom the payee is legally obligated to provide support, including alimony. (c) “Discounted present value” means the present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the internal revenue service. (d) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before reduction in that sum for transfer expenses or other deductions. (e) “Imminent financial hardship” means the inability of the payee, because of a change in the payee’s circumstances after the execution of the initial structured settlement agreement, to purchase or pay for 1 or more of the following without the transfer: (i) Medical care or a medical device for the payee or the payee’s dependents. (ii) Living quarters for the payee. (iii) A motor vehicle necessary for the payee’s transportation if the payee has no other suitable transportation options. (iv) Education or job training expenses. (v) Debts of the payee resulting from child support, alimony, a tax lien, funeral expenses, or a judgment. (f) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (g) “Interested party” means, with respect to a structured settlement, the payee, a beneficiary irrevocably designated under an annuity contract to receive payments following the payee’s death, an annuity issuer, a structured settlement obligor, or any other person that has continuing rights or obligations under the structured settlement. (h) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 3(e). [FN1] (i) “Payee” means an individual who receives tax free payments under a structured settlement and who proposes to make a transfer of payment rights under the structured settlement. (j) “Periodic payments” means both recurring payments and scheduled future lump sum payments. (k) “Qualified assignment agreement” means an agreement providing for a qualified assignment as defined in section 130 of the internal revenue code, 26 USC 130. (l) “Settled claim” means the original tort claim resolved by a structured settlement. (m) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment to resolve a tort claim. Structured settlement does not include an arrangement for periodic payments to settle a worker’s compensation claim. (n) “Structured settlement agreement” means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (o) “Structured settlement obligor” means, with respect to a structured settlement, a person that has a continuing obligation to make periodic payments to a payee under the structured settlement agreement or a qualified assignment agreement. (p) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if 1 or more of the following conditions exist: (i) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state. (ii) The structured settlement agreement was approved by a court in this state. (iii) The structured settlement agreement is expressly governed by the laws of this state. (q) “Terms of the structured settlement” means, with respect to a structured settlement, the terms of the structured settlement agreement, an annuity contract, a qualified assignment agreement, or an order or other approval of a court that authorized or approved the structured settlement. (r) “Transfer” means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights a payee makes for consideration; except that “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, unless action has been taken to redirect the structured settlement payments to the insured depository institution or to an agent or successor in interest of the depository institution, or action has been taken to otherwise enforce the blanket security interest against the structured settlement payment rights. (s) “Transfer agreement” means an agreement providing for a transfer of structured settlement payment rights. (t) “Transfer expenses” means all expenses of a transfer that the transfer agreement requires the payee to pay or have deducted from the gross advance amount, including, but not limited to, court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. Transfer expenses do not include preexisting obligations of the payee that are payable for the payee’s account from the proceeds of a transfer. (u) “Transferee” means a person acquiring or proposing to acquire structured settlement payment rights through a transfer. 691.1303. Separate disclosure statement provided by transferee; time; type size; contents Sec. 3. Not less than 3 days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement in bold type no smaller than 14 points setting forth all of the following: (a) The amounts and due dates of the structured settlement payments to be transferred. (b) The aggregate amount of the payments. (c) The discounted present value of the payments to be transferred, which shall be identified as the calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities, and the amount of the applicable federal rate used in calculating the discounted present value. (d) The gross advance amount. (e) An itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of the fees and disbursements. (f) The net advance amount. (g) The amount of penalties or liquidated damages payable by the payee if the payee breaches the transfer agreement. (h) A statement that the payee has the right to cancel the transfer agreement without penalty or further obligation not later than the third business day after the date that the payee signs the agreement. 691.1304. Transfer of structured settlement payment rights; ineffective unless approved in final court order; findings Sec. 4. A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been approved in a final court order and the order is based on express findings of all of the following: (a) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents. (b) The transferee has advised the payee, in writing, to seek independent professional advice regarding the transfer, and the payee has either received independent professional advice or knowingly waived in writing the opportunity to seek advice. (c) The transfer does not contravene an applicable statute or order of the court or other government authority. (d) The discount rate or rates used in determining the discounted present value of the structured settlement payments to be transferred do not exceed 25% per year. (e) If the transfer is inconsistent with a restriction against assignment in the structured settlement agreement and if the structured settlement obligor objects to the transfer based on the restriction against assignment before the hearing on the application for approval of the transfer, all of the following: (i) The payee will suffer imminent financial hardship if the transfer is not approved. (ii) The transfer will not render the payee unable to pay current or future normal living expenses. (iii) The transfer order will restrict payment of the gross advance amount to direct payment to the provider of the goods or services that are the subject of the imminent financial hardship. If the total cost of the goods or services cannot be readily determined at the time of or within a reasonable time after the transfer, the court may exercise reasonable discretion in ordering such direct payments. 691.1305. Transfers of structured settlement payment rights; effects Sec. 5. A transfer of structured settlement payment rights under this act has all of the following effects: (a) The structured settlement obligor and the annuity issuer are discharged and released from all liability for the transferred payments as to any person except the transferee. (b) The transferee is liable to the structured settlement obligor and the annuity issuer for both of the following: (i) If the transfer contravenes the terms of the structured settlement, the taxes incurred by the structured settlement obligor and the annuity issuer as a consequence of the transfer. (ii) Other liabilities or costs, including reasonable costs and attorney fees, arising from the structured settlement obligor’s and the annuity issuer’s compliance with the order of the court or from the transferee’s failure to comply with this act. (c) An annuity issuer or a structured settlement obligor is not required to divide a periodic payment between the payee and a transferee or assignee or between 2 or more transferees or assignees. (d) A payee may make a further transfer of structured settlement payment rights only after complying with all of the requirements of this act. 691.1306. Transfers of structured settlement payment rights; application for court approval; jurisdiction of court; notice of proposed transfer and application for its authorization, filing with court and service on interested parties, inclusions Sec. 6. (1) The transferee may apply for approval of a transfer of structured settlement payment rights with the court in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or with the court that approved the structured settlement agreement. (2) Not less than 20 days before the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under section 4, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, and shall include with the notice all of the following: (a) A copy of the transferee’s application. (b) A copy of the transfer agreement. (c) A copy of the disclosure statement required under section 3. (d) A listing of each of the payee’s dependents and each dependent’s age. (e) Notice that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing. (f) Notice of the time and place of the hearing and of the manner in which and the time by which written responses to the application must be filed to be considered by the court. The time for filing written responses shall be not less than 15 days after service of the transferee’s notice. 691.1307. Waiver of act provisions prohibited; determination of disputes; life-contingent transfers; effects of failure of proposed transfer; transfers in contravention of law and agreements entered into before effective date of act; responsibilities of transferee Sec. 7. (1) A payee shall not waive a provision of this act. (2) A transfer agreement entered into on or after the effective date of this act by a payee who resides in this state shall provide that disputes under the transfer agreement, including a claim that the payee has breached the agreement, shall be determined in and under the laws of this state. A transfer agreement shall not authorize the transferee or any other person to confess judgment or consent to entry of judgment against the payee. (3) A transfer of structured settlement payment rights that are life-contingent is not effective unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for both of the following: (a) Periodically confirming the payee’s survival. (b) Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of structured settlement payment rights shall not incur a penalty, forfeit an application fee or other payment, or otherwise incur liability to the proposed transferee or assignee based on the failure of the transfer to satisfy the conditions of this act. (5) This act does not authorize a transfer of structured settlement payment rights in contravention of law or validate or invalidate a transfer under a transfer agreement entered into before the effective date of this act. (6) The transferee has sole responsibility for complying with the requirements in section 3 [FN1] and fulfilling the conditions in section 4 [FN2] in a transfer of structured settlement payment rights. A structured settlement obligor or annuity issuer shall not bear any responsibility or liability arising from a transferee’s failure to comply with those requirements or to fulfill those conditions. 691.1308. Application of act Sec. 8. This act applies to a transfer of structured settlement payment rights under any transfer agreement entered into on or after the thirtieth day after the effective date of this act. 691.1309. Repealer Sec. 9. The structured settlement protection act, 2000 PA 330, MCL 691.1191 to 691.1197, is repealed effective 30 days after the effective date of this act. 691.1310. Effective date Sec. 10. This act takes effect September 1, 2006. CREDIT(S) P.A.2006, No. 296, § 10, Eff. Sept. 1, 2006. M. C. L. A. 691.1310, MI ST 691.1310 Current through P.A. 2007 No. 11 Copr. © 2007 Thomson/West. *This opportunity is not currently offered to persons residing in North Carolina.

Minnesota

The Minnesota Structured Settlement Protection Statute JUDICIAL PROCEDURE, DISTRICT COURTS CHAPTER 549. COSTS, DISBURSEMENTS Current through 2000 § 549.30. Definitions. Subdivision 1. Application. For purposes of sections 549.30 to 549.34, the terms defined in this section have the meanings given them. Subdivision 2. Annuity issuer. “Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement. Subdivision 3. Applicable law. “Applicable law” means: (1) the laws of the United States; (2) the laws of this state, including principles of equity applied in the courts of this state; and (3) the laws of any other jurisdiction: (i) which is the domicile of the payee or any other interested party; (ii) under whose laws a structured settlement agreement was approved by a court or responsible administrative authority; or (iii) in whose courts a settled claim was pending when the parties entered into a structured settlement agreement. Subdivision 4. Dependents. “Dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including spousal maintenance. Subdivision 5. Discounted present value. “Discounted present value” means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. Subdivision 6. Independent professional advice. “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other professional adviser: (1) who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; (2) who is not in any manner affiliated with or compensated by the transferee of the transfer; and (3) whose compensation for providing the advice is not affected by whether a transfer occurs or does not occur. Subdivision 7. Interested parties. “Interested parties” means the payee, a beneficiary designated under the annuity contract to receive payments following the payee’s death or, if the designated beneficiary is a minor, the designated beneficiary’s parent or guardian, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. Subdivision 8. Payee. “Payee” means an individual who is receiving tax free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. Subdivision 9. Qualified assignment agreement. “Qualified assignment agreement” means an agreement providing for a qualified assignment as provided by the United States Internal Revenue Code, title 26, section 130, as amended through December 31, 1998. Subdivision 10. Responsible administrative authority. “Responsible administrative authority” means a government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. Subdivision 11. Settled claim. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. Subdivision 12. Structured settlement. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. Subdivision 13. Structured settlement agreement. “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. Subdivision 14. Structured settlement obligor. “Structured settlement obligor” means the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. Subdivision 15. Structured settlement payment rights. “Structured settlement payment rights” means rights to receive periodic payments, including lump sum payments, under a structured settlement, whether from the settlement obligor or the annuity issuer, where: (1) the payee or any other interested party is domiciled in the state; (2) the structured settlement agreement was approved by a court or responsible administrative authority in the state; or (3) the settled claim was pending before the courts of this state when the parties entered into the structured settlement agreement. Subdivision 16. Terms of the structured settlement. “Terms of the structured settlement” means the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and an order or approval of a court, responsible administrative authority, or other government authority authorizing or approving the structured settlement. Subdivision 17. Transfer. “Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration. Subdivision 18. Transfer agreement. “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. Subdivision 19. Transferee. “Transferee” means a person who is receiving or will receive structured settlement payment rights resulting from a transfer. § 549.31. Conditions to transfers of structured settlement payment rights and structured settlement agreements. Subdivision 1. Generally. No direct or indirect transfer of structured settlement payment rights is effective and no structured settlement obligor or annuity issuer is required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or responsible administrative authority, based on the court’s or responsible administrative authority’s written express findings that: (a) the transfer complies with the requirements of sections 549.31 to 549.34 and will not contravene other applicable law; (b) not less than ten days before the date on which the payee first incurred an obligation with respect to the transfer, the transferee has provided to the payee a disclosure statement in bold type, no smaller than 14 points, specifying: (1) the amounts and due dates of the structured settlement payments to be transferred; (2) the aggregate amount of the payments; (3) the discounted present value of the payments, together with the discount rate used in determining the discounted present value; (4) the gross amount payable to the payee in exchange for the payments; (5) an itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (6) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in clause (5); (7) the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments; and (8) the amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee; (c) the payee has established that the transfer is in the best interests of the payee and the payee’s dependents; (d) the payee has received independent professional advice regarding the legal, tax, and financial implications of the transfer; (e) the transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court or responsible administrative authority; and (f) that the transfer agreement provides that any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper place of venue to bring any cause of action arising out of a breach of the agreement. The transfer agreement must also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in this state. If the transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court or responsible administrative authority may grant, deny, or impose conditions upon the proposed transfer as the court or responsible administrative authority deems just and proper under the facts and circumstances in accordance with established principles of law. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney’s fees arising from compliance by the issuer or obligor with the order of the court or responsible administrative authority. Subdivision 2. Unenforceable confessions of judgment. A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. Subdivision 3. Initial disclosure of structured settlement terms. In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in this state, the structured settlement obligor shall disclose in writing to the claimant or the claimant’s legal representative all of the following information that is not otherwise specified in the structured settlement agreement: (1) the amounts and due dates of the periodic payments to be made under the structured settlement agreement. In the case of payments that will be subject to periodic percentage increases, the amounts of future payments may be disclosed by identifying the base payment amount, the amount and timing of scheduled increases, and the manner in which increases will be compounded; (2) the amount of the premium payable to the annuity issuer; (3) the discounted present value of all periodic payments that are not life-contingent, together with the discount rate used in determining the discounted present value; (4) the nature and amount of any cost that may be deducted from any of the periodic payments; (5) where applicable, that any transfer of the periodic payments is prohibited by the terms of the structured settlement and may otherwise be prohibited or restricted under applicable law; and (6) that any transfer of the periodic payments by the claimant may subject the claimant to serious adverse tax consequences. § 549.32. Jurisdiction; procedure for approval of transfers. Subdivision 1. Jurisdiction. The district court has nonexclusive jurisdiction over an application for authorization under section 549.31 of a transfer of structured settlement payment rights. Subdivision 2. Notice. Not less than 20 days before the scheduled hearing on an application for authorization of a transfer of structured settlement payment rights under section 549.31, the transferee shall file with the court or responsible administrative authority and serve on: any other government authority that previously approved the structured settlement; and all interested parties, a notice of the proposed transfer and the application for its authorization. The notice must include: (1) a copy of the transferee’s application to the court or responsible administrative authority; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under section 549.31, subdivision 1, paragraph (b); (4) notification that an interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (5) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, in order to be considered by the court or responsible administrative authority. Written responses to the application must be filed within 15 days after service of the transferee’s notice. § 549.33. No waiver; no penalties. Subdivision 1. No waiver. The provisions of sections 549.30 to 549.34 may not be waived. Subdivision 2. No penalty. No payee who proposes to make a transfer of structured settlement payment rights shall incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee based on the failure of the transfer to satisfy the conditions of section 549.31. 1999 c 212 s 5. § 549.34. Construction. Nothing contained in sections 549.30 to 549.34 may be construed to authorize the transfer of workers’ compensation payment rights in contravention of applicable law or to give effect to the transfer of workers’ compensation payment rights that is invalid under applicable law. 1999 c 212 s 6. *This opportunity is not currently offered to persons residing in North Carolina.

Mississippi

The Mississippi Structured Settlement Protection Statute MISSISSIPPI CODE TITLE 11. CIVIL PRACTICE AND PROCEDURE CHAPTER 57. STRUCTURED SETTLEMENTS § 11-57-1. Short title This chapter shall be known and may be cited as the “Structured Settlement Protection Act.” § 11-57-3. Definitions The following words and phrases shall have the meanings ascribed herein, unless the context clearly indicates otherwise: (a) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (b) “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. (c) “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (d) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. (e) “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser. (f) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. (g) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Section 3(e) of this act. (h) “Payee” means an individual who is receiving tax-freepayments under a structured settlement and proposes to make a transfer of payment rights thereunder. (i) “Periodic payments” includes both recurring payments and scheduled future lump-sum payments. (j) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of 26 USCS 130. (k) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. (l) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. (m) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. (n) “Structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement. (o) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. § 11-57-5. Disclosure statement Not less than three (3) days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen (14) points, setting forth: (a) The amounts and due dates of the structured settlement payments to be transferred; (b) The aggregate amount of such payments; (c) The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating such discounted present value; (d) The gross advance amount; (e) An itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursement payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (f) The net advance amount; (g) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (h) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. § 11-57-7. Transfer of payment rights; conditions No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (a) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (b) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (c) The transfer does not contravene any applicable statute or the order of any court or other government authority. § 11-57-9. Effect of transfer Following a transfer of structured settlement payment rights under this chapter: (a) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (b) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) For any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this act; (c) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two (2) or more transferees or assignees; and (d) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. § 11-57-11. Transfer approval procedure (1) An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. (2) Not less than twenty (20) days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 4 of this act, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with such notice: (a) A copy of the transferee’s application; (b) A copy of the transfer agreement; (c) A copy of the disclosure statement required under Section 11-57-5; (d) A listing of each of the payee’s dependents, together with each dependent’s age; (e) Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed which shall be not less than fifteen (15) days after service of the transferee’s notice in order to be considered by the court or responsible administrative authority. § 11-57-13. Law governing; life-contingencies; construction; liabilities (1) The provisions of this chapter may not be waived by any payee. (2) Any transfer agreement entered into on or after the effective date of this chapter by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (3) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (a) periodically confirming the payee’s survival, and (b) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to be proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this chapter. (5) Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into before the effective date of this chapter is valid or invalid. (6) Compliance with the requirements set forth in § 11-57-5 and fulfillment of the conditions set forth in § 11-57-7 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions. § 11-57-15. Application of Chapter This chapter shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after August 1, 2002; provided, however, that nothing contained herein shall imply that any transfer under a transfer agreement reached before such date is either effective or ineffective. *This opportunity is not currently offered to persons residing in North Carolina.

Missouri

REVISED STATUTES OF MISSOURI TITLE XXVI. TRADE AND COMMERCE CHAPTER 407. MERCHANDISING PRACTICES § 407.1060. Definitions. As used in sections 407.1060 to 407.1068, the following terms mean: (1) “Annuity issuer”, an insurer that has issued an annuity contract to be used to fund periodic payments pursuant to a structured settlement; (2) “Code”, the United States Internal Revenue Code, United States Code Title 26, as amended from time to time; (3) “Discounted present value”, the fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (4) “Disinterested counsel”, legal counsel that has no business relationship with any transferee of structured settlement payment rights, will not receive any compensation directly or indirectly from any such transferee in connection with representing the payee, and whose compensation for representing the payee will not be affected by whether the transfer occurs or does not occur; (5) “Interested parties”, with respect to any structured settlement, the payee, any named beneficiary designated in the annuity contract or structured settlement to receive payments following the payee’s death, or, if the named beneficiary is a minor, the named beneficiary’s parent or guardian, the annuity issuer, and the structured settlement obligor; (6) “Payee”, an individual who is receiving tax-free damage payments pursuant to a structured settlement and who wants to make a transfer of payment rights pursuant to the structured settlement agreement; (7) “Qualified assignment agreement”, an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code, 26 U.S.C. Sec. 130, as amended from time to time; (8) “Settled claim”, the original tort claim resolved by a structured settlement; (9) “Structured settlement”, an arrangement established by: (a) a. Judgment or agreement in resolution of a tort claim providing for the periodic payment of damages excludable from the gross income of the recipient pursuant to Section 104(a)(2) of the Code; or b. Agreement for the periodic payment of compensation pursuant to any workers’ compensation act that is excludable from the gross income of the recipient pursuant to Section 104(a)(1) of the Code and which may be assigned pursuant to state law; and (b) Where the periodic payments are: a. Of the character described in subparagraphs (A) and (B) of Section 130(c)(2) of the Code; and b. Payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments pursuant to a qualified assignment in accordance with Section 130 of the Code; (10) “Structured settlement obligor”, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee pursuant to a structured settlement agreement or a qualified assignment agreement; (11) “Structured settlement payment rights”, rights to receive periodic payments, including lump sum payments pursuant to a structured settlement, whether from the settlement obligor or the annuity issuer, where: (a) The payee is domiciled in this state; or (b) The structured settlement was approved by a court of this state; (12) “Transfer”, any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration; (13) “Transfer agreement”, the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; (14) “Transferee”, a party acquiring or proposing to acquire structured settlement payment rights through a transfer from a payee. (L. 1999 S.B. 1, et al. § 3) § 407.1062. Structured settlement payment transfers, requirements. No transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of any transfer of structured settlement payment rights unless the transfer has been approved in advance in an order of a court of competent jurisdiction, based on the court’s express findings that: (1) The transfer complies with the requirements of sections 407.1060 to 407.1068 and does not contravene other applicable law; (2) Not less than ten days prior to the date on which the payee entered into the transfer agreement, the transferee has provided to the payee a disclosure statement in bold type, no smaller than fourteen point, setting forth: (a) The amounts and due dates of the structured settlement payments to be transferred; (b) The aggregate amount of the payments; (c) The discounted present value of the payments, together with the discount rate or rates used in determining the discounted present value; (d) The gross amount payable to the payee in exchange for the payments; and (e) An itemized listing of all brokers’ commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (3) The transfer is in the best interest of the payee and the payee’s dependents; (4) The transferee has given written notice of the transferee’s name, address and taxpayer identification number to all interested parties and has filed a copy of the notice with the court; (5) The payee has consented in writing to the transfer; (6) The payee has been represented by disinterested counsel in connection with the transfer or the payee understands the nature of the transaction and the economic consequences of the transaction; and (7) The payment to be made to the payee by the transferee is equal to the fair market value of the structured settlement rights being transferred. § 407.1064. Approval by court, notice. 1. An application pursuant to sections 407.1060 to 407.1068 for approval of a transfer of structured settlement payment rights may be brought in the circuit court in the county in which the payee is domiciled, or in any court which approved the structured settlement agreement. 2. Not less than twenty days prior to the scheduled hearing on any application for court approval of a transfer of structured settlement payment rights pursuant to section 407.1062, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its approval, including in the notice: (1) A copy of the transferee’s application to the court; (2) A copy of the disclosure statement required pursuant to subdivision (2) of section 407.1062; and (3) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application may be filed by interested parties, which shall be not less than ten days after service of the transferee’s notice, in order to be considered by the court. 3. The provisions of sections 407.1060 to 407.1068 may not be waived. § 407.1066. Right to rescind–limitation of liability–limitation of jurisdiction. 1. A payee who enters into a transfer agreement shall have an absolute, irrevocable right to rescind and cancel such transfer agreement, with no penalty or other obligation, by giving written notice of rescission to the transferee at any time during the five days following the signing of the transfer agreement. 2. Any provision in a transfer agreement to pay liquidated damages, penalties, fees, actual or punitive damages, attorneys’ fees or costs of any kind or nature to any person, firm, corporation or other entity which will be a party or third-party beneficiary to the transfer or transfer agreement shall be unenforceable. 3. Nothing contained in sections 407.1060 to 407.1068 shall be construed to authorize any transfer of structured settlement payment rights or other rights arising under a tort claim or a workers’ compensation claim in contravention of applicable law or to give effect to any transfer of such rights that is invalid under applicable law. 4. Any provision in a transfer agreement that consents to jurisdiction in the courts of another state, requires appointment of an agent for service of process, confesses judgment, or selects a forum for resolution of disputes arising out of a transfer agreement shall be unenforceable. § 407.1068. Application of law. The provisions of sections 407.1060 to 407.1068 shall apply to any transfer of structured settlement payment rights pursuant to a transfer agreement reached on or after August 28, 1999. *This opportunity is not currently offered to persons residing in North Carolina.

Montana

The Montana Structured Settlement Protection Statute Montana Senate Bill 122 Synopsis: An act regulating the transfer of a beneficiary’s structured settlement payment rights; requiring disclosure and approval of a court or responsible administrative authority prior to transfer; outlining obligations after a transfer; placing a condition on additional transfers; providing for jurisdiction and notice; prohibiting waiver of provisions; providing conditions for contingent payments; assigning responsibility for compliance; and providing an applicability date. Text: BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: Section 1. Short title. Sections 1 through 12 may be cited as the “Structured Settlement Protection Act”. Section 2. Definitions. As used in sections 1 through 12, unless the context requires otherwise, the following definitions apply: (1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Consideration” has the meaning provided in 28-2-801. (3) “Dependent” means a payee’s spouse, a minor child of the payee, or any person for whom the payee is legally obligated to provide support, including spousal maintenance. (4) “Discounted present value” means the present value of future payments determined by discounting the future payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service. (5) “Gross advance amount” means the sum payable to the payee or to the payee’s account as consideration for a transfer of a structured settlement payment right before any reduction for a transfer expense or any other deduction is made from the sum. (6) “Independent professional advice” means advice of an attorney, a certified public accountant, an actuary, or any licensed professional adviser. (7) “Interested party” means, with respect to a structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive a payment after the payee’s death, the annuity issuer, the structured settlement obligor, or any other party that has a continuing right or obligation under the structured settlement. (8) “Net advance amount” means the gross advance amount minus the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 3(5). (9) “Payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of the payment rights. (10) “Periodic payment” includes both a recurring payment and any scheduled future lump-sum payments. (11) “Qualified assignment agreement” means an agreement providing for a qualified assignment, as defined for federal tax purposes, of the liability to make periodic payments under a structured settlement. (12) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. (13) “Settled claim” means the original tort claim. (14) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (15) “Structured settlement agreement” means the written agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (16) “Structured settlement obligor” means, with respect to a structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (17) “Structured settlement payment right” means the right to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, when: (a)(i) the payee is domiciled in this state; or (ii) the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (b) a court or responsible administrative authority in this state approved the structured settlement agreement; or (c) the structured settlement agreement is expressly governed by the laws of this state. (18) “Terms of the structured settlement” means, with respect to a structured settlement, the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, or any order or other approval of a court or responsible administrative authority or other government authority that authorized or approved the structured settlement. (19)(a) “Transfer” means a sale, assignment, pledge, hypothecation, or other alienation or encumbrance of a structured settlement payment right made by a payee for consideration. (b) The term does not include the creation or perfection of a security interest in a structured settlement payment right under a blanket security agreement entered into with an insured depository institution in the absence of any action: (i) to redirect the structured settlement payment to the insured depository institution or its agent or successor in interest; or (ii) to otherwise enforce the blanket security interest against the structured settlement payment right. (20) “Transfer agreement” means the agreement providing for a transfer of a structured settlement payment right. (21)(a) “Transfer expenses” means all expenses of a transfer that are: (i) required under the transfer agreement to be paid by the payee; or (ii) deducted from the gross advance amount, including without limitation any court filing fee, attorney fee, escrow fee, lien recordation fee, judgment and lien search fee, finder’s fee, commission, and other payments to a broker or other intermediary. (b) Transfer expenses do not include a payee’s preexisting obligations that are payable on the payee’s account from the proceeds of a transfer. (22) “Transferee” means a party acquiring or proposing to acquire a structured settlement payment right through a transfer. Section 3. Disclosure to payee. No less than 3 days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a written disclosure statement separate from the transfer agreement that sets forth in bold type no smaller than 14 points: (1) the amounts and the due dates of the structured settlement payment to be transferred; (2) the aggregate amount of the amounts in subsection (1); (3) the discounted present value of the payments to be transferred, which must be identified as: (a) the calculation of the present value of the transferred structured settlement payment under federal standards for valuing annuities; and (b) the amount of the applicable federal rate used in calculating the discounted present value; (4) the gross advance amount; (5) an itemized list of all applicable transfer expenses, other than attorney fees and related disbursements, based on the transferee’s best estimate of the amount of fees and disbursements payable in connection with the transferee’s application for approval of the transfer; (6) the net advance amount; (7) the amount of any penalty or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee; and (8) a statement that the payee has the right to cancel the transfer agreement without penalty or further obligation no later than the third business day after the date on which the payee signs the agreement. Section 4. Transfer of structured settlement payment right — conditions. A direct or indirect transfer of a structured settlement payment right is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of a structured settlement payment right unless a final court order or order of a responsible administrative authority has approved the transfer in advance based on written findings by the court or responsible administrative authority that: (1) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents, if any; (2) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and either has received independent professional advice or knowingly waived independent professional advice in writing; and (3) the transfer does not contravene any applicable statute or the order of any court or other government authority. Section 5. Obligations after transfer. After the transfer of a structured settlement payment right pursuant to sections 1 through 12: (1) the structured settlement obligor and the annuity issuer are discharged and released from liability for the transferred payments to all parties except to the transferee; (2) the transferee is liable to the structured settlement obligor and the annuity issuer: (a) if the transfer contravenes the terms of the structured settlement for any tax incurred by the structured settlement obligor or annuity issuer as a consequence of the transfer; and (b) for any other liability or cost, including reasonable costs and attorney fees, arising: (i) from compliance by the structured settlement obligor and annuity issuer with the order of the court or responsible administrative authority; or (ii) as a consequence of the transferee’s failure to comply with sections 1 through 12; and (3) neither the structured settlement obligor nor the annuity issuer may be required to divide a periodic payment between a payee and a transferee or assignee or between two or more transferees or assignees. Section 6. Additional transfers. After the transfer of a structured settlement payment right pursuant to sections1 through 12, any further transfer by the payee is subject to all of the requirements of sections 1 through 12. Section 7. Jurisdiction — notice. (1) A transferee may apply under sections 1 through 12 for approval of a transfer of a structured settlement payment right: (a) in the county in which the payee resides; (b) in the county in which the structured settlement obligor or the annuity issuer maintains a principal place of business; or (c) in any court or before any responsible administrative authority that approved the structured settlement agreement. (2) Not less than 20 days prior to a scheduled hearing on an application for approval of a transfer of a structured settlement payment right under section 4, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for an authorized transfer. The notice must include the following: (a) a copy of the transferee’s application; (b) a copy of the transfer agreement; (c) a copy of the disclosure statement required under section 3; (d) a listing of each of the payee’s dependents, if any, together with the age of each dependent; (e) notitication that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application either in person or by counsel by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) notification of the time and the place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed. The filing deadline may not be less than 15 days after the transferee’s notice has been served. Section 8. Waiver not allowed. A payee may not waive the provisions of sections 1 through 12. Section 9. Disputes — entry of judgment. (1) A transfer agreement entered into on or after the effective date of this act by a payee who resides in this state must provide that disputes under the transfer agreement, including a claim that the payee has breached the agreement, must be determined in this state under the laws of this state. (2) A transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. Section 10. Contingent payment conditions. A transfer of a structured settlement payment right may not extend to a payment that is contingent upon the life of a payee unless prior to the date on which the payee signs the transfer agreement the transferee has established and agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) periodically confirming the payee’s survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice upon the payee’s death. Section 11. Responsibility for compliance — liability. (1) Compliance with the requirements in section 3 and fulfillment of the conditions in section 4 are the sole responsibility of the transferee in any transfer of a structured settlement payment right. Neither the structured settlement obligor nor the annuity issuer bears responsibility for or liability arising from noncompliance with section 3 or failure to fulfill the conditions of section 4. (2) A payee who proposes to make a transfer of a structured settlement payment right may not incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on a failure of a transfer agreement to satisfy the conditions of sections 1 through 12. Section 12. Construction. Sections 1 through 12 may not be construed to authorize a transfer of a structured settlement payment right in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this act is valid or invalid. Section 13. Applicability. This act applies to any transfer of structured settlement payment rights under a transfer agreement executed on or after October 1, 2005. *This opportunity is not currently offered to persons residing in North Carolina.

Nebraska

The Nebraska Structured Settlement Protection Statute Cited as 2001 NEB 25-3101 – 25-3107 LB55 LB 55 LEGISLATIVE BILL 55 Approved by the Governor April 4, 2001 Introduced by Landis, 46 AN ACT relating to financial arrangements; to amend section 9-109, Uniform Commercial Code; to adopt the Structured Settlements Transfers Protection Act; to harmonize provisions; to provide an operative date; to repeal the original section; and to declare an emergency. Be it enacted by the people of the State of Nebraska, Section 1. Sections 1 to 7 of this act shall be known and may be cited as the Structured Settlements Transfers Protection Act. Sec. 2. The purpose of the Structured Settlements Transfers Protection Act is to protect structured settlement recipients involved in the process of transferring structured settlement payment rights. The act does not apply to structured settlements of claims for workers’ compensation benefits. Sec. 3. For purposes of the Structured Settlements Transfers Protection Act: (1) Annuity issuer means an insurer that has issued a contract to be used to fund periodic payments under a structured settlement; (2) Applicable federal rate means the most recently published applicable rate used to determine the present value of an annuity, as issued by the Internal Revenue Service pursuant to section 7520 of the Internal Revenue Code as defined in section 49-801.01; (3) Dependent means a payee’s spouse and minor children and any other family member and other person for whom the payee is legally obligated to provide support, including spousal maintenance; (4) Discount or finance charge means the sum of all charges payable directly or indirectly from assigned structured settlement payments and imposed directly or indirectly by the transferee as an incident to a transfer of structured settlement payment rights. Discount or finance charge includes interest charges, discounts, and other compensation for the time value of money, all application, origination, processing, underwriting, closing, filing, and notary fees and all similar charges, and all charges for commissions or brokerage services. Discount or finance charge does not include any fee or other obligation incurred by a payee to obtain independent professional advice concerning a transfer of structured settlement payment rights or any charges, commissions, costs, brokerage fees, or other fees which the payee has agreed to pay to a nonaffiliated third party in connection with the transfer; (5) Discounted present value means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate used to determine the present value of an annuity as the discount rate; (6) Interested parties means, with respect to any structured settlement: (a) The payee; (b) Any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death or, if such designated beneficiary is a minor, the designated beneficiary’s parent or guardian; (c) The annuity issuer; (d) The structured settlement obligor; and (e) Any other party that has continuing rights or obligations under the structured settlement; (7) Payee means a Nebraska resident who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. Payee does not include a Nebraska resident who is receiving payments under a structured settlement of a workers’ compensation claim; (8) Qualified assignment agreement means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code as defined in section 49-801.01; (9) Structured settlement means an arrangement for periodic payment of damages for personal injuries or sickness established by a settlement, agreement, or judgment in resolution of a tort claim; (10) Structured settlement obligor means the party that has the -1-LB55 LB 55 obligation to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (11) Structured settlement payment rights means rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer if the payee is a resident in the state; (12) Transfer means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration; (13) Transfer agreement means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; and (14) Transferee means a person who is receiving or will receive structured settlement payment rights resulting from a transfer. Sec. 4. (1) No direct or indirect transfer of structured settlement payment rights is effective, and no structured settlement obligor or annuity issuer is required to make a payment directly or indirectly to a transferee of structured settlement payment rights, unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction based on the court’s written express findings that: (a) The transfer complies with the requirements of the Structured Settlements Transfers Protection Act; (b) The transferee has provided to the payee a disclosure statement in no smaller than fourteen-point type specifying: (i) The amounts and due dates of the structured settlement payments to be transferred; (ii) The aggregate amount of the payments; (iii) The discounted present value of the payments, together with the discount rate used in determining the discounted present value; (iv) The gross amount payable to the payee in exchange for the payments; (v) An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; (vi) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in subdivision (1)(b)(v) of this section; (vii) The quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments. Such quotient shall be disclosed in the following statement “The net amount that you will receive from us in exchange for your future structured settlement payments represents ….% of the estimated current value of the payments.”; (viii) The effective annual interest rate. Such rate shall be disclosed in the following statement “Based on the amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of ….% per year.”; and (ix) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee; (c) The transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents, and the net amount payable to the payee is not unfair, unjust, or unreasonable under existing circumstances; (d) The payee has received, or waived his or her right to receive, independent professional advice regarding the legal, tax, and financial implications of the transfer; (e) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court; (f) The transfer agreement provides that any disputes between the parties will be governed by the laws of Nebraska and that Nebraska is the proper place of venue to bring any cause of action arising out of a breach of the agreement; and (g) The transfer does not contravene any applicable statute or order of any court or other government authority. (2) The court may not authorize a transfer if the court makes an express written finding that the transfer contravenes the public policy of this state. (3) The transfer agreement shall also provide that the parties agree to the jurisdiction of any Nebraska court of competent jurisdiction. If the -2-LB55 LB 55 transfer would contravene the terms of the structured settlement or the standards set forth in subsection (1) or (2) of this section, the court may grant, deny, or impose conditions upon the proposed transfer as the court deems just and proper under the facts and circumstances, upon the filing of a written objection by any interested party and after considering the objection and any response to it. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney’s fees arising from compliance by the issuer or obligor with the order of the court. (4) A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee. (5) With respect to a transfer of structured settlement payment rights a transferee may not contract for or receive a discount or finance charge that would result in an effective annual rate in excess of the maximum interest rate per year applicable in Nebraska to a consumer loan as set forth in section 45-101.03. Sec. 5. (1) The Nebraska court that approved the structured settlement agreement has jurisdiction over an application for authorization of a transfer of structured settlement payment rights. If a Nebraska court did not approve the structured settlement agreement, a person shall file an application under section 4 of this act in the district court for the county in which the payee resides. (2) Not less than twenty days before the scheduled hearing on an application for authorization of a transfer of structured settlement payment rights under section 4 of this act, the transferee shall file with the court and all interested parties a notice of the proposed transfer and the application for its authorization. The notice shall include: (a) A copy of the transferee’s application to the court; (b) A copy of the transfer agreement; (c) A copy of the disclosure statement required under section 4 of this act; and (d) Notice that an interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing, and notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed in order to be considered by the court. Written responses to the application shall be filed within fifteen days after service of the transferee’s notice. Sec. 6. The provisions of sections 3 to 5 of this act may not be waived. No payee who proposes to make a transfer of structured settlement payment rights shall incur a penalty, forfeit an application fee or other payment, or otherwise incur any liability to the proposed transferee based on the failure of the transfer to satisfy the conditions of section 4 of this act. Sec. 7. The Structured Settlements Transfers Protection Act applies to any transfer of structured settlement payment rights under a transfer agreement entered into on or after January 1, 2002. Sec. 8. Section 9-109, Uniform Commercial Code, is amended to read: 9-109. Scope. (a) Except as otherwise provided in subsections (c) and (d), this article applies to: (1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (2) an agricultural lien; (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes; (4) a consignment; (5) a security interest arising under section 2-401, 2-505, 2-711(3), or 2A-508(5), as provided in section 9-110; and (6) a security interest arising under section 4-210 or 5-118. (b) The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply. (c) This article does not apply to the extent that: (1) a statute, regulation, or treaty of the United States preempts this article; (2) another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state; -3-LB55 LB 55 (3) a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or (4) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 5-114. (d) This article does not apply to: (1) a landlord’s lien, other than an agricultural lien; (2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 9-333 applies with respect to priority of the lien; (3) an assignment of a claim for wages, salary, or other compensation of an employee; (4) a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose; (5) an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only; (6) an assignment of a right to payment under a contract to an assignee that is also obliged to perform under the contract; (7) an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness; (8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but sections 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds; (9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral; (10) a right of recoupment or set-off, but: (A) section 9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and (B) section 9-404 applies with respect to defenses or claims of an account debtor; (11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for: (A) liens on real property in sections 9-203 and 9-308; (B) fixtures in section 9-334; (C) fixture filings in sections 9-501, 9-502, 9-512, 9-516, and 9-519; and (D) security agreements covering personal and real property in section 9-604; (12) an assignment of a claim arising in tort, other than a commercial tort claim, but sections 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds; or (13) an assignment of a deposit account in a consumer transaction, but sections 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds; or (14)(A) an assignment or transfer of a claim or right to receive compensation for personal injuries or sickness under any workers’ compensation, industrial accident, or similar law or (B) a transfer of structured settlement payment rights entered into on or after January 1, 2002, and subject to the Structured Settlements Transfers Protection Act unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction pursuant to the act. Sec. 9. This act becomes operative on July 1, 2001. Sec. 10. Original section 9-109, Uniform Commercial Code, is repealed. Sec. 11. Since an emergency exists, this act takes effect when passed and approved according to law. *This opportunity is not currently offered to persons residing in North Carolina.

Nevada

The Nevada Structured Settlement Protection Statute Nevada a.b. 166 synopsis: an act relating to structured settlements; requiring the approval of the court for the transfer of the right to receive payment pursuant to a structured settlement; and providing other matters properly relating thereto. Text: the people of the state of nevada, represented in senate and assembly, do enact as follows: section 1. Chapter 42 of nrs is hereby amended by adding thereto a new section to read as follows: 1. An agreement to transfer the right to receive payments pursuant to a structured settlement to a transferee is valid and enforceable only if the transfer is approved by a district court. The transferee must petition the district court for such approval and the court shall approve the transfer if it determines that: (a) the transfer is in the best interest of the payee, considering the totality of the circumstances, including, without limitation, the welfare and support of the dependents of the payee; (b) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has received such independent professional advice or has knowingly waived such advice in writing; and (c) the transfer does not violate any applicable law or the order of any court. 2. An action pursuant to subsection 1 must be commenced in the district court: (a) located where the original claim which gave rise to the structured settlement was filed; or (b) within the county in which the payee resides. 3. Not later than 7 days before a hearing on a petition pursuant to subsection 1, the transferee must file with the district court and serve on all interested parties and any attorney who represented the payee in the action which resulted in the settled claim a notice of the proposed agreement and the petition for authorization of the proposed agreement. The notice must include, without limitation: (a) a copy of the petition of the transferee; (b) a copy of the proposed agreement; (c) a copy of the disclosure required pursuant to subsection 4; (d) a list which includes the name and age of each dependent of the payee; (e) a statement that any interested party may support, oppose or otherwise respond to the petition of the transferee by appearing in person or by counsel during the hearing on the petition or by submitting written comments to the court; and (f) notice of the time and place of the hearing, the manner in which a written response to the application must be filed and the date by which a written response to the petition must be filed for consideration by the court. 4. A transferee who commences an action pursuant to subsection 1 must provide to the court with the proposed agreement a disclosure setting forth: (a) the amounts and due dates of the payments under the structured settlement proposed to be transferred; (b) the aggregate amount of the proposed payments to be transferred; (c) the amount to be paid to the payee for the transfer before deducting any expenses; (d) an itemized list of all expenses that the payee will be required to pay other than attorney’s fees and which will be deducted from the amount paid to the payee for the transfer, including, without limitation, any commission owed to a broker, service charges, application or processing fees, costs of closing on the agreement, filing or administrative charges and fees paid to a notary public; (e) the amount to be paid to the payee for the transfer after deducting the expenses; (f) the amount of any liquidated damages which the payee is required to pay if he breaches the transfer agreement; (g) the discounted present value of the payments under the structured settlement that are proposed to be transferred and the discount rate used to determine that value; and (h) if adverse tax consequences exist, a statement which informs the payee that such a transfer may subject him to adverse tax consequences with regard to the payment of federal income tax. 5. Compliance with the requirements set forth in this section may not be waived. 6. As used in this section: (a) “annuity issuer” means an insurer who has issued a contract to fund periodic payments under a structured settlement. (b) “dependents” include, without limitation, the spouse of a payee, any minor child of a payee and any other person for whom the payee is legally obligated to provide support, including, without limitation, alimony; (c) “independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; (d) “interested parties” means the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the death of the payee, the annuity issuer, any person who is obligated to make payments pursuant to the structured settlement and any other party who has continuing rights or obligations under the structured settlement; (e) “payee” means a person who is receiving tax-free payments under a structured settlement and proposes to make a transfer of the right to receive payments under that structured settlement; (f) “periodic payments” includes, without limitation, both recurring payments and scheduled future lump sum payments; (g) “settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. (h) “structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (i) “transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance by a payee for consideration of the right to receive payments pursuant to a structured settlement; and (j) “transferee” means a party acquiring or proposing to acquire the right to payments pursuant to a structured settlement through a transfer. Sec. 2. Nrs 104.9406 is hereby amended to read as follows: 104.9406 1. Subject to subsections 2 to 8, inclusive, an account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. 2. Subject to subsection 8, notification is ineffective under subsection 1: (a) if it does not reasonably identify the rights assigned; (b) to the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor’s duty to pay a person other than the seller and the limitation is effective under law other than this article; or (c) at the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if: (1) only a portion of the account, chattel paper or payment intangible has been assigned to that assignee; (2) a portion has been assigned to another assignee; or (3) the account debtor knows that the assignment to that assignee is limited. 3. Subject to subsection 8, if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection 1. 4. Except as otherwise provided in subsection 5 and nrs 104.9407 and 104a.2303, and subject to subsection 8, a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it: (a) prohibits, restricts or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in, the account, chattel paper, payment intangible or promissory note; or (b) provides that the assignment or transfer, or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account, chattel paper, payment intangible or promissory note. 5. Subsection 4 does not apply to the sale of a payment intangible or promissory note. 6. Subject to subsections 7 and 8, a rule of law, statute, or regulation, that prohibits, restricts, or requires the consent of a government, governmental body or official, or account debtor to the assignment or transfer of, or creation of a security interest in, an account or chattel paper is ineffective to the extent that the rule of law, statute or regulation: (a) prohibits, restricts, or requires the consent of the government, governmental body or official, or account debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account or chattel paper; or (b) provides that the assignment or transfer, or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account or chattel paper. 7. Subject to subsection 8, an account debtor may not waive or vary its option under paragraph (c) of subsection 2. 8. This section is subject to law other than this article which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family or household purposes. 9. This section does not apply to an assignment of a health- care-insurance receivable Or to a transfer of a right to receive payments pursuant to section 1 of this act. *This opportunity is not currently offered to persons residing in North Carolina.

New Jersey

The New Jersey Structured Settlement Protection Statute NEW JERSEY PERMANENT STATUTES TITLE 2A. ADMINISTRATION OF CIVIL AND CRIMINAL JUSTICE Current through P.L.2002, c.33 § 2A:16-63. Short title. This act shall be known and may be cited as the “Structured settlement Protection Act.” L.2001, c.139, s.1, eff. Aug. 1, 2001. § 2A:16-64. Definitions relative to structured settlements. For the purposes of this act: “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. “Dependents” includes a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. “Discounted present value” means the present value of future payments determined by discounting those payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from that consideration. “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser. “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subsection e. of section 3 of this act. “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. “Periodic payments” includes both recurring payments and scheduled future lump sum payments. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of 26 U.S.C. s.130. “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. “Structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. “Sructured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: (1) the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this State; or (2) the structured settlement agreement was approved by a court or responsible administrative authority in this State; or (3) the structured settlement agreement is expressly governed by the laws of this State. “Terms of the structured settlement ” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. “Transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; except that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce the blanket security interest against the structured settlement payment rights. “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; “transfer expenses” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. § 2A:16-65. Provision of separate disclosure statement to payee, contents. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth: a. the amounts and due dates of the structured settlement payments to be transferred; b. the aggregate amount of the payments; c. the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities” and the amount of the applicable federal rate used in calculating the discounted present value; d. the gross advance amount; e. an itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any of those fees and disbursements; f. the net advance amount; g. the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and h. a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 2A:16-66. Approval required for payment. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or responsible administrative authority that: a. the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; b. the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the right to seek that advice in writing; and c. the transfer does not contravene any applicable statute or the order of any court or other government authority. § 2A:16-67. Procedures following transfer. Following a transfer of structured settlement payment rights under this act: a. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; b. The transferee shall be liable to the structured settlement obligor and the annuity issuer: (1) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by those parties as a consequence of the transfer; and (2) for any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by those parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this act; c. Neither the annuity issuer nor the structured settlement obligor shall be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and d. Any further transfer of structured settlement payment rights by the payee shall be made in compliance with all of the requirements of this act. § 2A:16-68. Application for approval of transfer, procedure. a. An application under this act to a court or responsible administrative authority for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the jurisdiction in which the payee resides, in the jurisdiction in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. b. Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 4 of this act, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with the notice: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under section 3 of this act; (4) a listing of each of the payee’s dependents, together with each dependent’s age; (5) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) notification of the time and place of the hearing and notification of the manner in which, and the time by which, written responses to the application shall be filed, which shall be not less than 15 days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. § 2A:16-69. Provisions of act not waivable; controlling law; prohibitions. a. The provisions of this act shall not be waived by any payee. b. Any transfer agreement entered into on or after the effective date of this act by a payee who resides in this State shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this State. No transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. c. No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) periodically confirming the payee’s survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. d. No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this act. e. Nothing contained in this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this act is valid or invalid. f. Compliance with the requirements set forth in section 3 of this act and fulfillment of the conditions set forth in section 4 of this act shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with those requirements or failure to fulfill those conditions. *This opportunity is not currently offered to persons residing in North Carolina.

New Mexico

The New Mexico Structured Settlement Protection Statute N. M. S. A. 1978, § 39-1A-2 § 39-1A-1. Short title This act may be cited as the “Structured Settlement Protection Act”. § 39-1A-2. Definitions As used in the Structured Settlement Protection Act: A. “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement; B. “court” means: (1) the court of original jurisdiction that authorized or approved a structured settlement; or (2) if the court that authorized or approved the structured settlement no longer has jurisdiction to approve a transfer of payment rights under the structured settlement under the Structured Settlement Protection Act, a district court or a probate court located in the county in which the payee resides; C. “dependents” includes a payee’s spouse, minor children and all other persons for whom the payee is legally obligated to provide support, including alimony; D. “discounted present value” means the present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service; E. “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration; F. “independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; G. “interested party” means, with respect to any structured settlement: (1) the payee; (2) any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death; (3) the annuity issuer; (4) the structured settlement obligor; and (5) any other party that has continuing rights or obligations under the structured settlement; H. “net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Subsection E of Section 3 of the Structured Settlement Protection Act; I. “payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to transfer payment rights under the structured settlement; J. “periodic payments” includes both recurring payments and scheduled future lump-sum payments; K. “qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code of 1986, as amended; L. “settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement; M. “structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; N. “structured settlement agreement” means the agreement, judgment, stipulation or release embodying the terms of a structured settlement; O. “structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; P. “structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: (1) the payee is domiciled in or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (2) the structured settlement agreement was authorized or approved by a court located in this state; or (3) the structured settlement agreement is expressly governed by the laws of this state; Q. “terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of the court; R. “transfer” means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration, except that “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or its agent or successor in interest, or to enforce the blanket security interest against the structured settlement payment rights; S. “transfer agreement” means the agreement providing for a transfer of structured settlement payment rights; T. “transfer expenses” means all the expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney fees, escrow fees, lien recording fees, judgment and lien search fees, finders’ fees, commissions and other payments to a broker or other intermediary, except that “transfer expenses” does not include preexisting obligations of the payee payable on the payee’s account from the proceeds of a transfer; and U. “transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. § 39-1A-3. Required disclosures to payee At least three days before the date on which the payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type at least fourteen points in size, that states: A. the amounts and due dates of the structured settlement payments to be transferred; B. the aggregate amount of the payments; C. the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the applicable federal rate used in calculating the discounted present value; D. the gross advance amount; E. an itemized listing of all applicable transfer expenses, other than attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of those expenses; F. the net advance amount; G. the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and H. a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the close of the third business day after the date the agreement is signed by the payee. § 39-1A-4. Approval of transfers of structured settlement payment rights No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that: A. the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; B. the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and C. the transfer does not contravene any applicable statute or an order of any court or other governmental authority. § 39-1A-5. Effects of transfer of structured settlement payment rights Following a transfer of structured settlement payment rights pursuant to the Structured Settlement Protection Act: A. the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; B. the transferee shall be liable to the structured settlement obligor and the annuity issuer: (1) for any taxes incurred by the parties as a consequence of the transfer if the transfer contravenes the terms of the structured settlement; and (2) for any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee’s failure to comply with the provisions of the Structured Settlement Protection Act; C. the transferee shall be liable to the payee: (1) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the payee as a consequence of the transfer; and (2) for any other liabilities or costs, including reasonable costs and attorney fees, arising as a consequence of the transferee’s failure to comply with the provisions of the Structured Settlement Protection Act; D. neither the structured settlement obligor nor the annuity issuer may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and E. any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of the Structured Settlement Protection Act. § 39-1A-6. Procedure for approval of transfers A. An application under the Structured Settlement Protection Act for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in court. B. At least twenty days before the date of the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 4 of the Structured Settlement Protection Act, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization, including with the notice: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under Section 3 of the Structured Settlement Protection Act; (4) a listing of each of the payee’s dependents, together with each dependent’s age; (5) notice that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (6) notice of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed to be considered by the court. C. Written responses to the application under Paragraph (6) of Subsection B of this section shall be filed on or before the fifteenth day after the date the transferee’s notice is served. § 39-1A-7. General provisions; construction A. The provisions of the Structured Settlement Protection Act shall not be waived by any payee. B. Any transfer agreement entered into by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. The transfer agreement shall not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. C. Transfer of structured settlement payment rights shall not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and agreed to maintain procedures reasonably satisfactory to the structured settlement obligor and the annuity issuer for: (1) periodically confirming the payee’s survival; and (2) giving the structured settlement obligor and the annuity issuer prompt written notice in the event of the payee’s death. D. A payee who proposes to make a transfer of structured settlement payment rights shall not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of the Structured Settlement Protection Act. E. Nothing contained in the Structured Settlement Protection Act may be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into before July 1, 2005 is valid or invalid. F. Compliance with the requirements in Section 3 of the Structured Settlement Protection Act and fulfillment of the conditions in Section 4 of that act are solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer bears any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. *This opportunity is not currently offered to persons residing in North Carolina.

New York

The New York Structured Settlement Protection Statute McKinney’s General Obligations Law § 5-1701 § 5-1701. Definitions For purposes of this title: (a) “annuity issuer” means an insurer that has issued an insurance contract used to fund periodic payments under a structured settlement; (b) “dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony or maintenance; (c) “discounted present value” means the present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (d) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration; (e) “independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser: (i) who is engaged by a claimant or payee to render advice concerning the legal, tax and financial implications of a structured settlement or a transfer of structured settlement payment rights; (ii) who is not in any manner affiliated with or compensated by the defendant in such settlement or the transferee of such transfer; and (iii) whose compensation for rendering such advice is not affected by whether a settlement or transfer occurs or does not occur; (f) “interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; (g) “net advance amount” means the gross advance amount less the aggregate amount of the expenses required to be disclosed under subdivision (f) of section 5-1703 of this title; (h) “payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (i) “periodic payments” includes both recurring payments and scheduled future lump sum payments; (j) “qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time; (k) “settled claim” means the original tort claim resolved by a structured settlement; (l) “structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim; (m) “structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement; (n) “structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (o) “structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (i) the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; (ii) the structured settlement agreement was approved by a court in this state; or (iii) the structured settlement agreement is expressly governed by the laws of this state; (p) “terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or approval of any court authorizing or approving such structured settlement; (q) “transfer [FN1] means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights; (r) “transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; (s) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; “transfer expenses” do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer; and (t) “transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer or restructuring. § 5-1702. Initial disclosure of structured settlement terms In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in this state, the defendant or defendant’s legal representative shall disclose in writing to the claimant or the claimant’s legal representative all of the following information that is not otherwise specified in the structured settlement agreement: (a) the amounts and due dates of the periodic payments to be made under the structured settlement agreement. In the case of payments that will be subject to periodic percentage increases, the amounts of future payments may be disclosed by identifying the base payment amount, the amount and timing of scheduled increases, and the manner in which increases will be compounded; (b) the amount of the premium payable to the annuity issuer; (c) the nature and amount of any cost that may be deducted from any of the periodic payments; (d) where applicable, that any transfer of the periodic payments is prohibited by the terms of the structured settlement and may otherwise be prohibited or restricted under applicable law; and (e) a statement that the claimant is advised to obtain independent professional advice relating to the legal, tax and financial implications of the settlement, including any adverse consequences and that the defendant or defendant’s legal representative may not refer any advisor, attorney or firm for such purpose. § 5-1703. Required disclosures to payee Not less than ten days prior to the date on which the payee signs a transfer agreement, the transferee shall provide to the payee by first class mail and certified mail, return receipt requested or United States postal service priority mail, a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: (a) the amounts and due dates of the structured settlement payments to be transferred; (b) the aggregate amount of such payments; (c) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the applicable federal rate used in calculating such discounted present value; (d) the price quote from the original annuity issuer or, if such price quote is not readily available from the original annuity issuer, then a price quote from two other annuity issuers that reflects the current cost of purchasing a comparable annuity for the aggregate amount of payments to be transferred; (e) the gross advance amount and the annual discount rate, compounded monthly, used to determine such figure; (f) an itemized listing of all commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee and the total amount of such fees; (g) the net advance amount including the statement: “The net cash payment you receive in this transaction from the buyer was determined by applying the specified discount rate to the amount of future payments received by the buyer, less the total amount of commissions, fees, costs, expenses and charges payable by you”; (h) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (i) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. § 5-1704. Provisions prohibited in transfer agreement No transfer agreement or other document or agreement executed in association with the transfer shall contain any provision described in this section. To the extent that a prohibited provision is included in a transfer agreement such provision shall be void and unenforceable. A prohibited provision is: (a) any provision that waives the payee’s right to sue under any law, or where the payee agrees not to sue, or which waives jurisdiction or standing to sue under the transfer agreement; (b) any provision that requires the payee to indemnify and hold harmless the transferee, or to pay the transferee’s costs of defense, in any claim or action brought by the payee on or [FN1] the payee’s behalf contesting the transfer for any reason; (c) any provision that requires the payee to pay the transferee’s attorney’s fees or costs if the transfer contemplated by the transfer agreement is not completed; and (d) any provision that requires the payee to pay any tax liability arising under federal tax laws, other than the seller’s own tax liability, if any, that results from the transfer. § 5-1705. Procedure for approval of transfers (a) An action for approval of a transfer of a structured settlement shall be by a special proceeding. (b) Such proceeding shall be commenced to obtain approval of a transfer of structured settlement payment rights. Such proceeding shall be commenced: (i) in the supreme court of the county in which the payee resides; or (ii) in any court which approved the structured settlement agreement. (c) A copy of the notice of petition and petition or order to show cause and petition shall be served upon all interested parties at least twenty days before the time at which the petition is noticed to be heard. A response shall be served at least seven days before the petition is noticed to be heard. (d) A petition for approval of a transfer of structured settlement payment rights shall include: (i) a copy of the transfer agreement; (ii) a copy of the disclosure statement and proof of notice of that statement required under section 5-1703 of this title; and (iii) a listing of each of the payee’s dependents, together with each dependent’s age. § 5-1706. Approval of transfers of structured settlement payment rights No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction based upon express findings by such court that: (a) the transfer complies with the requirements of this title; (b) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependants; and whether the transaction, including the discount rate used to determine the gross advance amount and the fees and expenses used to determine the net advance amount, are fair and reasonable. Provided the court makes the findings as outlined in this subdivision, there is no requirement for the court to find that an applicant is suffering from a hardship to approve the transfer of structured settlement payments under this subdivision; (c) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; (d) the transfer does not contravene any applicable statute or the order of any court or other government authority; and (e) is written in plain language and in compliance with section 5-702 of this article. § 5-1707. Effects of transfer of structured settlement payment rights Following a transfer of structured settlement payment rights under this title: (a) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (b) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) for any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by such parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this title; (c) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (d) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this title. § 5-1708. General provisions; construction (a) The provisions of this title may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this title by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (i) periodically confirming the payee’s survival, and (ii) giving the annuity issuer and the structured settlement obligor prompt written notice in the even [FN1] of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this title. (e) Nothing contained in this title shall be construed to authorize any transfer of structured settlement payment rights in contravention of any statute or to imply that any transfer under a transfer agreement entered into prior to the effective date of this title is valid or invalid. (f) Compliance with the requirements set forth in section 5-1703 of this title and fulfillment of the conditions set forth in section 5-1705 of this title shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, non-compliance with such requirements or failure to fulfill such conditions. (g) The assignee of any transfer agreement or any agreement executed in connection therewith, shall be subject to all claims and defenses of the payee against the transferee arising from such transfer agreement notwithstanding any agreement to the contrary. Recovery hereunder by the payee shall not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Rights of the payee under this provision can be asserted affirmatively against a claim by the assignee. § 5-1708-a. Waiver for families of victims of terrorist attacks Notwithstanding the provisions of section four thousand two hundred twenty-four of the insurance law: (a) An annuity issuer, or an employee or other representative of such issuer, shall be permitted to waive or offer to waive the commission or other compensation otherwise payable thereto as a result of the sale of a policy or contract subject to the provisions of section four thousand two hundred twenty-four of the insurance law to a member of the immediate family of a person who was a victim of the September eleventh, two thousand one terrorist attacks against the United States; and (b) In connection with such waiver, the insurance company may, at the election of the policyowner or contract owner: (i) contribute the amount of such waived commission or other compensation to a charitable organization that meets the requirements of section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and is organized for the benefit of families of victims of such attack; or (ii) deduct from the premium an amount equal to such waived commission or other compensation otherwise payable thereto as a result of the sale. (c) For purposes of this section, the term “victim” shall mean a decedent who died as a result of wounds or injury incurred as a result of the terrorist attacks against the World Trade Center or the Pentagon on September eleventh, two thousand one, or the terrorist-related aircraft crash in Pennsylvania on such date, but shall not include any individual identified by the United States attorney general to have been a participant or conspirator in such attack or a representative of such an individual. (d) An issuer seeking to avail itself of the provisions of this section shall first submit its plan of implementation to the superintendent of insurance for prior approval. If the plan is approved, such issuer shall thereafter, upon request of such superintendent, submit a report to such superintendent regarding its experience in the implementation of such provisions. § 5-1709. Enforcement (a) In addition to the other remedies provided, whenever there shall be a violation of this title, application may be made by the attorney general in the name of the people of the state of New York to a court of competent jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this title, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceedings, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this title has occurred, the court may impose a civil penalty of not more than one thousand dollars for each violation. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. (b) Any payee injured by a violation of this title may bring an action for the recovery of damages. The court may award reasonable attorney’s fees to the prevailing plaintiff. *This opportunity is not currently offered to persons residing in North Carolina.

North Carolina

North Carolina Structured Settlement Protection Act NORTH CAROLINA GENERAL STATUTES Chapter 1. CIVIL PROCEDURE Subchapter XV. INCIDENTAL PROCEDURE IN CIVIL ACTIONS Article 44B § 1-543.11. Definitions. For purposes of this Article: (1) “Annuity issuer” means an insurer that has issued an annuity or insurance contract used to fund periodic payments under a structured settlement; (2) “Discounted present value” means the fair present value of future payments, as determined by discounting such payments to the present utilizing the tables adopted in Article 5 of Chapter 8 of the General Statutes; (3) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed or registered professional or financial adviser: a. Who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer of structured settlement payment rights; b. Who is not in any manner affiliated with or compensated by the transferee of such transfer; and c. Whose compensation for rendering such advice is not affected by whether a transfer occurs or does not occur; (4) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the terms of the structured settlement; (5) “Payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (6) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code, United States Code Title 26, as amended from time to time; (7) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (8) “Settled claim” means the original tort claim resolved by a structured settlement; (9) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim; (10) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments; (11) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (12) “Structured settlement payment rights” means rights to receive periodic payments (including lump-sum payments) under a structured settlement, whether from the settlement obligor or the annuity issuer, where: a. The payee is domiciled in this State; b. The structured settlement agreement was approved by a court or responsible administrative authority in this State; or c. The settled claim was pending before the courts of this State when the parties entered into the structured settlement agreement; (13) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving such structured settlement; and (14) “Transfer” means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration; (15) “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. § 1-543.12. Structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or a responsible administrative authority based on express findings by such court or responsible administrative authority that: (1) The transfer complies with the requirements of this Article [of] law; (2) Not less than 10 days prior to the date on which the payee first incurred any obligation with respect to the transfer, the transferee has provided to the payee a disclosure statement in bold type, no smaller than 14 point setting forth: a. The amounts and due dates of the structured settlement payments to be transferred; b. The aggregate amount of such payments; c. The discounted present value of such payments; d. The gross amount payable to the payee in exchange for such payments; e. An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, legal fees, notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; f. The net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in sub-subdivision e. of this subdivision; g. The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments; h. The discount rate used by the transferee to determine the net amount payable to the payee for the structured settlement payments to be transferred; and i. The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties) payable by the payee in the event of any breach of the transfer agreement by the payee; (3) The transfer is in the best interest of the payee; (4) The payee has received independent professional advice regarding the legal, tax, and financial implications of the transfer; (5) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of such notice with the court or responsible administrative authority; (6) The discount rate used in determining the net amount payable to the payee, as provided in subdivision (2) of this section, does not exceed an annual percentage rate of prime plus five percentage points calculated as if the net amount payable to the payee, as provided in sub-subdivision (2)f. of this section, was the principal of a consumer loan made by the transferee to the payee, and if the structured settlement payments to be transferred to the transferee were the payee’s payments of principal plus interest on such loan. For purposes of this subdivision, the prime rate shall be as reported by the Federal Reserve Statistical Release H.15 on the first Monday of the month in which the transfer agreement is signed by both the payee and the transferee, except when the transfer agreement is signed prior to the first Monday of that month then the prime rate shall be as reported by the Federal Reserve Statistical Release H.15 on the first Monday of the preceding month; (7) Any brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee do not exceed two percent (2%) of the net amount payable to the payee; (8) The transfer of structured settlement payment rights is fair and reasonable; and (9) Notwithstanding a provision of the structured settlement agreement prohibiting an assignment by the payee, the court may order a transfer of periodic payment rights provided that the court finds that the provisions of this Article are satisfied. If the court or responsible administrative authority authorizes the transfer pursuant to this section, the court or responsible administrative authority shall order the structured settlement obligor to execute an acknowledgment of assignment letter on behalf of the transferee for the amount of the structured settlement payment rights to be transferred; provided, however, structured settlement payment rights arising from a claim pursuant to Chapter 97 shall not be authorized. § 1-543.13. Jurisdiction. (a) Where the structured settlement agreement was entered into after commencement of litigation or administrative proceedings in this State, the court or administrative agency where the action was pending shall have exclusive jurisdiction over any application for authorization under this Article of a transfer of structured settlement payment rights. (b) Where the structured settlement agreement was entered into prior to the commencement of litigation or administrative proceedings, or after the commencement of litigation outside this State, the Superior Court Division of the General Court of Justice shall have nonexclusive original jurisdiction over any application for authorization under this Article of a transfer of structured settlement payment rights. § 1-543.14. Procedure for approval of transfers. (a) Where the structured settlement agreement was entered into after the commencement of litigation or administrative proceedings in this State, the application for authorization of a transfer of structured settlement rights shall be filed with the court or administrative agency where the settled claim was pending as a motion in the cause. (b) Where the structured settlement agreement was entered into prior to the commencement of litigation or administrative proceedings, or after the commencement of litigation or administrative proceedings outside this State, the application for authorization of a transfer of structured settlement payment rights shall be filed in the superior court with proper venue pursuant to Article 7 of this Chapter. The nature of the action shall be a special proceeding governed by the provisions of Article 33 of this Chapter. (c) Not less than 30 days prior to the scheduled hearing on any application for authorization of a transfer of structured settlement payment rights under this Article, the transferee shall file with the proper court or responsible administrative authority and serve on any other government authority which previously approved the structured settlement, on all interested parties as defined in G.S. 1-543.11(4), and on the Attorney General, a notice of the proposed transfer and the application for its authorization, including in such notice: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under G.S. 1-543.12(a)(2); (4) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (5) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed in order to be considered by the court or responsible administrative authority. (d) The Attorney General shall have standing to raise, appear, and be heard on any matter relating to an application for authorization of a transfer of structured settlement payment rights under this § 1-543.15. No waiver; penalties. (a) The provisions of this Article may not be waived. (b) Any payee who has transferred structured settlement payment rights to a transferee without complying with this Article may bring an action against the transferee to recover actual monetary loss or for damages up to five thousand dollars ($5,000) for the violation by the transferee, or bring actions for both. The payee is entitled to attorneys’ fees and costs incurred to enforce this Article. In addition, all unpaid structured settlement payment rights transferred in violation of this Article by any transferee shall be reconveyed to the payee. (c) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee based on any failure of such transfer to satisfy the conditions of this Article. *This opportunity is not currently offered to persons residing in North Carolina.

North Dakota

90489.0200 FIRST ENGROSSMENT Sixty-first Legislative Assembly ENGROSSED HOUSE BILL NO. 1205 of North Dakota Introduced by Representatives Keiser, Wald Senator Klein A BILL for an Act to create and enact chapter 32-03.4 of the North Dakota Century Code, relating to the transfer of structured settlements; and to provide a penalty. BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA: SECTION 1. Chapter 32-03.4 of the North Dakota Century Code is created and enacted as follows: 32-03.4-01. Definitions. For purposes of this chapter: 1. “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. 2. “Dependent” includes a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony or support. 3. “Discounted present value” means the present value of future payments determined by discounting those payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States internal revenue service. 4. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. 5. “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser: a. Who is engaged by a claimant or payee to render advice concerning the legal, tax, and financial implications of a structured settlement or a transfer of structured settlement payment rights; b. Who is not in any manner affiliated with or compensated by the defendant in the settlement or the transferee of the transfer; and c. Whose compensation for rendering the advice is not affected by whether a settlement or transfer occurs or does not occur. 6. “Interested party” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. 7. “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subsection 5 of section 32-03.4-02. 8. “Payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. 9 “Periodic payments” includes both recurring payments and scheduled future lump sum payments. 10. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code [26 U.S.C. 130], as amended. 11. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. 12. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. 13. “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. 14. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. 15. “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if at least one of the following applies: a. The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; b. The structured settlement agreement was approved by a court in this state; or c. The structured settlement agreement is expressly governed by the laws of this state. 16. “Terms of the structured settlement” includes, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or other governmental authority that authorized or approved such structured settlement. 17. “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. The term does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce the blanket security interest against the structured settlement payment rights. 18. “Transfer agreement” means the agreement that provides for a transfer of structured settlement payment rights. 19. “Transfer expenses” means all expenses of a transfer which are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finder’s fees, commissions, and other payments to a broker or other intermediary. The term does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. 20. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 32-03.4-02. Required disclosures to payee. At least three days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold and in at least fourteen-point type, setting forth: 1. The amounts and due dates of the structured settlement payments to be transferred; 2. The aggregate amount of the payments; 3. The discounted present value of the payments to be transferred, which must be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for ‘valuing annuities'”, and the amount of the applicable federal rate used in calculating the discounted present value; 4. The gross advance amount; 5. An itemized list of all applicable transfer expenses, other than attorney’s fees and related disbursements, payable in connection with the transferee’s application for approval of the transfer and the transferee’s best estimate of the amount of any such fees and disbursements; 6. The net advance amount; 7. The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and 8. A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, no later than the third business day after the date the agreement is signed by the payee. 32-03.4-03. Approval of transfers of structured settlement payment rights. A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer may not be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on the following express findings by the court: 1. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents and whether the transaction, including the discount rate used to determine the gross advance amount and the fees and expenses used to determine the net advance amount, are fair and reasonable. If the court makes the findings as outlined in this subsection, there is not a requirement for the court to find that an applicant is suffering from a hardship to approve the transfer of structured settlement payments under this subsection; 2. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received that advice or knowingly waived the advice in writing; and 3. The transfer does not contravene any applicable statute or the order of any court or other governmental authority. 32-03.4-04. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this chapter: 1. The structured settlement obligor and the annuity issuer are discharged and released from all liability for the transferred payments as to all parties except the transferee; 2. The transferee is liable to the structured settlement obligor and the annuity issuer: a. If the transfer contravenes the terms of the structured settlement, for any taxes incurred by those parties as a consequence of the transfer; and b. For any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by those parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this chapter; 3. Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and 4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. 32-03.4-05. Procedure for approval of transfers. 1. An application for approval of a transfer of structured settlement payment rights under this chapter must be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court that approved the structured settlement agreement. 2. At least twenty days before the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 32-03.4-03, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The notice must include: a. A copy of the transferee’s application; b. A copy of the transfer agreement; c. A copy of the disclosure statement required under section 32-03.4-02; d. A list of each of the payee’s dependents and each dependent’s age; e. Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; f. Notification of the time and place of the hearing; and g. Notification of the manner in which and the time by which written responses to the application must be filed in order to be considered by the court, which may be not less than fifteen days after service of the transferee’s notice. 32-03.4-06. No waiver by payee. The requirements of this chapter may not be waived by any payee. 32-03.4-07. Disputes decided under state law. Any transfer agreement entered on or after the effective date of this chapter by a payee who resides in this state must provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, must be determined in and under the laws of this state. Such a transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. 32-03.4-08. Life-contingent payments not to be transferred – Exception. A transfer of structured settlement payment rights may not extend to any payments that are life-contingent unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. 32-03.4-09. No payee liability for failure to comply with chapter. A payee who proposes to make a transfer of structured settlement payment rights may not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this chapter. 32-03.4-10. Effect of chapter on existing laws and transfer agreements. This chapter does not authorize any transfer of structured settlement payment rights in contravention of any law nor does this chapter imply that any transfer under a transfer agreement entered before August 1, 2009, is valid or invalid. 32-03.4-11. Transferee solely responsible for certain requirements. In any transfer of structured settlement payment rights, compliance with the requirements of section 32-03.4-02 and fulfillment of the conditions of section 32-03.4-03 are the sole responsibility of the transferee. Neither the structured settlement obligor nor the annuity issuer bears any responsibility for, or any liability arising from, noncompliance with those requirements or failure to fulfill those conditions. 32-03.4-12. Penalty. Any transferee that willfully violates this chapter is guilty of an infraction. A second or subsequent violation of this chapter is a class B misdemeanor. 32-03.4-13. Applicability of chapter. This chapter applies to any transfer of structured settlement payment rights under a transfer agreement entered after July 31, 2009. This chapter does not imply that any transfer under a transfer agreement reached before August 1, 2009, is either effective or ineffective.

Ohio

Ohio Structured Settlement Protection Act § 2323.58 Definitions. As used in this section and sections 2323.581 [2323.58.1] to 2323.587 [2323.58.7] of the Revised Code: (A) “Annuity issuer” means an insurer that has issued an insurance contract that is used to fund periodic payments under a structured settlement. (B) “Applicable law” means any of the following, as applicable in interpreting the terms of a structured settlement agreement: (1) The laws of the United States; (2) The laws of this state, including principles of equity that are applied in the courts of this state; (3) The laws of any other jurisdiction if any of the following applies: (a) The laws of that other jurisdiction govern the structured settlement. (b) A court or a responsible administrative authority approved the structured settlement agreement under the laws of that other jurisdiction. (c) The transfer of payments under the structured settlement is subject to the laws of that other jurisdiction. (C) “Dependent” means a spouse of a payee, a minor child of a payee, or any other member of the family of a payee or other person whom, by law or by court order or decree, the payee is legally obligated to support. (D) “Discounted present value” means the fair present value of the future payments under a structured settlement that is determined by discounting those payments to the present, using the most recently published applicable federal rate for determining the present value of an annuity as issued by the United States internal revenue service. (E) “Independent professional advice” means the advice of an attorney, a certified public accountant, an actuary, or any other licensed professional adviser if all of the following apply: (1) The payee has engaged the services of the licensed professional adviser to render advice concerning the legal and other implications of a transfer of structured settlement payment rights. (2) The licensed professional adviser has signed a statement to the effect that the licensed professional adviser rendered advice to the payee concerning the legal and other implications of a transfer of structured settlement payment rights. (3) The licensed professional adviser is not affiliated in any manner with, referred by, or compensated in any manner by the transferee of the structured settlement payment rights. (4) The compensation of the licensed professional adviser is not affected by whether or not a transfer of structured settlement payment rights occurs. (F) “Interested party” includes the payee with respect to a structured settlement, the annuity issuer, the structured settlement agreement obligor, and any other party that has continuing rights or obligations under the structured settlement agreement. (G) “Payee” means an individual who is receiving periodic payments under a structured settlement agreement that are excludable from the individual’s gross income under federal income taxation laws applicable to that individual and who proposes to make a transfer of the rights to receive those periodic payments. (H) “Periodic payments” includes both continuing monthly or other periodic payments and scheduled future lump-sum payments under a structured settlement. (I) “Qualified assignment agreement” means an agreement that provides for a qualified assignment, as defined in section 130 of the “Internal Revenue Code of 1986,” 100 Stat. 2085, 26 U.S.C.A. 130(c), as amended, through an assignment of the liability under a structured settlement agreement to make periodic payments as damages, on account of personal injury or sickness. (J) “Responsible administrative authority” means any government authority of another state vested by the law of that state with the original exclusive jurisdiction over the settled claim resolved by a structured settlement. (K) “Settled claim” means the original tort claim resolved by a structured settlement. (L) “Structured settlement” means an arrangement for periodic payments of damages for injury to a person that is established by a settlement or a court judgment in resolution of a tort claim. (M) “Structured settlement agreement” means an agreement, judgment, stipulation, or release that embodies the terms of a structured settlement, including the rights of a payee to receive periodic payments. (N) “Structured settlement obligor” means the party that has the obligation to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (O) “Structured settlement payment rights” means the rights under a structured settlement agreement to receive periodic payments from a structured settlement obligor or an annuity issuer if either of the following applies: (1) The payee, the structured settlement obligor, or the annuity issuer with respect to the structured settlement agreement is a resident of this state. (2) The structured settlement agreement was approved by a court in this state. (P) “Terms of a structured settlement” includes the terms of a structured settlement agreement, an insurance contract, a qualified assignment agreement, and any order or approval by a court, a responsible administrative authority, or other government authority authorizing or approving the structured settlement. (Q) “Transfer” means a sale, assignment, pledge, hypothecation, or any other form of alienation or encumbrance of structured settlement payment rights made by a payee for consideration. (R) “Transfer agreement” means an agreement that provides for the transfer of structured settlement payment rights from a payee to a transferee. (S) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer of those rights. HISTORY: 148 v S 260. Eff 10-27-2000. The provisions of § 2 of SB 260 (148 v –) read as follows: SECTION 2. Sections 2323.58, 2323.581, 2323.582, 2323.583, 2323.584, 2323.585, 2323.586, and 2323.587 of the Revised Code, as enacted by this act, shall apply to a transfer of structured settlement payment rights under a transfer agreement entered into on or after the effective date of this act. As used in this section, “structured settlement payment rights,” “transfer,” and “transfer agreement” have the same meanings as in section 2323.58 of the Revised Code, as enacted by this act. [§ 2323.58.1] § 2323.581 Requirements for valid transfer of structural settlement payment rights. Text of Statute No direct or indirect transfer of structured settlement payment rights shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee of structured settlement payment rights, unless the transferee has provided the payee and other interested parties with the disclosures required by section 2323.582 [2323.58.2] of the Revised Code and the transfer has been approved in advance in a final order of a court of competent jurisdiction in accordance with sections 2323.583 [2323.58.3] and 2323.584 [2323.58.4] of the Revised Code. [§ 2323.58.2] § 2323.582 Disclosure statement by transferee. Text of Statute Not less than ten days prior to the date on which a payee becomes obligated under a transfer agreement, the transferee shall provide to the payee a disclosure statement, in boldface type of the minimum size of fourteen points, setting forth all of the following: (A) The amounts and due dates of the structured settlement payments that would be transferred under the transfer agreement; (B) The aggregate amount of the payments described in division (A) of this section; (C) The discounted present value of the payments described in division (A) of this section and the amount of the applicable federal rate used in determining the discounted present value; (D) The gross amount payable to the payee in exchange for or as consideration for the transfer of the structured settlement payments described in division (A) of this section; (E) An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee as described in division (D) of this section; (F) The net amount payable to the payee after deduction from the gross amount payable to the payee as described in division (D) of this section of all commissions, fees, costs, expenses, and charges described in division (E) of this section; (G) The quotient, expressed as a percentage, obtained by dividing the net amount payable to the payee as described in division (F) of this section by the discounted present value of the payments described in division (C) of this section; (H) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of any breach of the transfer agreement by the payee. [§ 2323.58.3] § 2323.583 Court approval of transfer. Text of Statute A court of competent jurisdiction may approve a transfer of structured settlement payment rights only in a final order that is based on the express findings of the court, and the express findings shall include all of the following: (A) The transferee has provided to the payee a disclosure statement that complies with section 2323.582 [2323.58.2] of the Revised Code, and the payee has confirmed the payee’s receipt of the disclosure statement, as evidenced by the payee’s notarized signature on a copy of the disclosure statement. (B)(1) Except as provided in division (B)(2) of this section, the payee has established that the transfer is fair and reasonable and in the best interests of the payee and the payee’s dependents. (2) If, on the effective date of the transfer agreement, a federal hardship standard exists, the payee has established that the transfer meets that hardship standard. (C) The payee has received independent professional advice regarding the legal and other implications of the transfer. (D) If the transfer contravenes the terms of the structured settlement involved, all of the following have been complied with: (1) Each dependent whom the payee is legally obligated to support by court order or decree, in a written approval and waiver, approves the transfer and waives the right to require that the structured settlement payments be made to the payee in accordance with the terms of the structured settlement. (2) Any court or responsible administrative authority that previously approved the structured settlement, other than the court from which the approval of the transfer is sought under sections 2323.58 to 2323.585 [2323.58.5] of the Revised Code, has expressly approved the transfer in writing. (3) The transferee has provided to the court in which the application for approval of the transfer was filed all of the signed original copies of the approvals required under divisions (D)(1) and (2) of this section. (4) The transferee has furnished each interested party copies of the approvals required under divisions (D)(1) and (2) of this section. (E) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of that notice with the court in which the application for approval of the transfer was filed. (F) The transfer complies with all of the requirements of sections 2323.58 to 2323.585 of the Revised Code and does not contravene any applicable law. [§ 2323.58.4] § 2323.584 Application for approval in advance of transfer. Text of Statute (A) A person shall file an application under sections 2323.58 to 2323.585 [2323.58.5] of the Revised Code for the approval in advance of a transfer of structured settlement payment rights in the Ohio court that approved the structured settlement agreement. If the structured settlement agreement was not approved by an Ohio court, a person shall file an application under sections 2323.58 to 2323.585 [2323.58.5] of the Revised Code for the approval in advance of a transfer of structured settlement payment rights in the probate division of the court of common pleas of the county in which the payee, the structured settlement obligor, or the annuity issuer resides. (B) The following procedures shall apply to an application for the approval in advance by a court of a transfer of structured settlement payment rights under division (A) of this section: (1) Upon the filing of the application, the court shall set a date and time for a hearing on the application and shall notify the transferee of the date, time, and place of the hearing. (2) Not less than twenty days prior to the date set by the court for the hearing on an application filed pursuant to this section, the transferee shall file with the court and shall serve on the court or any responsible administrative authority that previously approved the structured settlement, on all interested parties, and on the annuity issuer and the structured settlement obligor, in the manner prescribed in the Rules of Civil Procedure for the service of process, a notice of the proposed transfer and the application for its approval in advance. The notice shall include all of the following: (a) A copy of the application; (b) A copy of the transfer agreement; (c) A copy of the disclosure statement provided by the transferee pursuant to section 2323.582 [2323.58.2] of the Revised Code and signed by the payee pursuant to division (A) of section 2323.583 [2323.58.3] of the Revised Code; (d) Notification of the date, time, and place of the hearing on the application; (e) Notification that any interested party may support, oppose, or otherwise respond to the application, either in person or by counsel, by submitting to the court a written response containing the interested party’s support of, opposition to, or comments on the application or by participating in the hearing; (f) Notification of the manner of filing a written response to the application and the time within which the response is required to be filed in order for the court to consider it. (3) Within fifteen days after receipt of the notice described in division (B)(2) of this section, any interested party who wishes to respond to the application shall file a written response with the court personally or by certified mail, return receipt requested. (4) At the conclusion of the hearing on an application under this section, the court may grant or deny the approval of the transfer. The court shall enter its order accordingly. If the court grants the approval of the transfer, it shall include in its order all of the express findings specified in section 2323.583 [2323.58.3] of the Revised Code. If the court denies the approval of the transfer, it shall include in its order the reasons for the denial. (5) An order of the court made under division (B)(4) of this section is a final and appealable order. [§ 2323.58.5] § 2323.585 Immunity of payee; waivers prohibited; illegal transfers not validated. Text of Statute (A) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee based on a failure of the transfer to comply with any of the requirements of sections 2323.581 [2323.58.1] to 2323.584 [2323.58.4] of the Revised Code. (B) No provision of this section or section 2323.581 [2323.58.1], 2323.582 [2323.58.2], 2323.583 [2323.58.3], or 2323.584 [2323.58.4] of the Revised Code may be waived. (C) No provision of this section or section 2323.581 [2323.58.1], 2323.582 [2323.58.2], 2323.583 [2323.58.3], or 2323.584 [2323.58.4] of the Revised Code authorizes any transfer of structured settlement payment rights in contravention of applicable law or gives effect to any transfer of structured settlement payment rights that is void under any applicable law. [§ 2323.58.6] § 2323.586 Immunity of settlement obligor and annuity issuer. Text of Statute The structured settlement obligor and the annuity issuer under a transfer or transfer agreement are immune from liability based upon any claim by the payee, or any party, other than a transferee, claiming through the payee, as to any structured settlement payment rights or periodic payments that are the subject of the transfer or transfer agreement. [§ 2323.58.7] § 2323.587 Application of consumer sales practices act. Text of Statute A violation of section 2323.581 [2323.58.1], 2323.582 [2323.58.2], 2323.583 [2323.58.3], 2323.584 [2323.58.4], 2323.585 [2323.58.5], or 2323.586 [2323.58.6] of the Revised Code is an unfair or deceptive act or practice in violation of section 1345.02 of the Revised Code. *This opportunity is not currently offered to persons residing in North Carolina.

Oregon

The Oregon structured settlement protection statute Ch. 173 S.B. no. 645 Annuities–structured settlement rights An act relating to transfers of structured settlement rights. Be it enacted by the people of the state of Oregon: Section 1. As used in sections 1 to 6 of this 2005 act: (1) “Annuity issuer” means an insurer that has entered into a contract to fund periodic payments under a structured settlement agreement. (2) “Obligor” means a party that has a continuing obligation to make periodic payments to a payee under a structured settlement agreement or an agreement that provides for a qualified assignment as defined in section 130 of the internal revenue code, as of January 1, 2006. (3) “Payee” means an individual who is receiving tax-free payments under a structured settlement agreement and proposes to make a transfer of payment rights. (4) “Payment rights” means rights to receive periodic payments under a structured settlement agreement, whether from the obligor or the annuity issuer. (5) “Periodic payments” includes both recurring payments and scheduled future lump sum payments. (6) “Responsible administrative authority” means a government authority vested by law with exclusive jurisdiction over the original tort claim or workers’ compensation claim that was resolved in a structured settlement agreement. (7) “Structured settlement agreement” means an agreement, judgment, stipulation or release embodying the terms of an arrangement for periodic payment of damages from an obligor or an annuity issuer for: (a) Personal injuries or sickness established by settlement or judgment in resolution of a tort claim; or (b) Periodic payments in settlement of a workers’ compensation claim. (8) “Terms of the structured settlement agreement” includes the terms of: (a) A structured settlement agreement; (b) An annuity contract; (c) An agreement that provides for a qualified assignment as defined in section 130 of the internal revenue code, as of January 1, 2006; and (d) Any order or other approval of any court, responsible administrative authority or other government authority that authorized or approved the structured settlement agreement. (9) “Transfer” means any sale, assignment, pledge or other alienation or encumbrance of payment rights made by a payee for consideration. “transfer” does not include the creation or perfection of an unspecified security interest in all of the payee’s payment rights entered into with an insured depository institution, or an agent or successor in interests of the insured depository institution, in the absence of any action to redirect the payments under the structured settlement agreement to the insured depository institution or otherwise to enforce a security interest against the payment rights. (10) “Transfer agreement” means an agreement providing for a transfer of payment rights. (11) “Transferee” means a party acquiring or proposing to acquire payment rights through a transfer agreement. Section 2. (1) A payee may transfer payment rights under sections 1 to 6 of this 2005 act if: (a) The payee is domiciled in this state; (b) The domicile or principal place of business of the obligor or the annuity issuer is located in this state; (c) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (d) The structured settlement agreement is expressly governed by the laws of this state. (2) Prior to transferring payment rights under sections 1 to 6 of this 2005 act, the transferee shall file an application for approval of the transfer in: (a) The county in which the payee resides; (b) The county in which the obligor or the annuity issuer maintains its principal place of business; or (c) Any court or before any responsible administrative authority that approved the structured settlement agreement. (3) Not less than 20 days prior to the scheduled hearing on an application for approval of a transfer of payment rights, the transferee shall send notice of the proposed transfer to: (a) The payee; (b) Any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death; (c) The annuity issuer; (d) The obligor; and (e) Any other party that has continuing rights or obligations under the structured settlement agreement that is the subject of the hearing. (4) The notice sent under subsection (3) of this section shall include: (a) A copy of the transferee’s application. (b) A copy of the transfer agreement. (c) A copy of the disclosure statement provided to the payee as required under section 3 of this 2005 act. (d) a listing of each person for whom the payee is legally obligated to provide support, including the age of each of those persons. (e) notification that any person receiving notice under subsection (3) of this section is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing. (f) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall not be less than 15 days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. Section 3. Not less than three days prior to the day on which a payee is scheduled to sign a transfer agreement, a transferee shall provide the payee with a statement in not less than 14-point type that sets forth: (1) The amounts and due dates of the structured settlement payments to be transferred. (2) The aggregate amount of the payments to be transferred. (3) The discounted present value of the payments and the rate used in calculating the discounted present value. The discounted present value shall be calculated by using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the internal revenue service. (4) The amount payable to a payee as the result of a transfer. The amount set forth in this subsection shall be calculated before any reductions are made for transfer expenses required to be listed under subsection (5) of this section or any related disbursements. (5) An itemized listing of all applicable transfer expenses and the transferee’s best estimate of the amount of any attorney fees and disbursements. For the purposes of this subsection, “transfer expenses”: (a) Includes all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the amount payable to a payee as the result of a transfer. (b) Does not include attorney fees and related disbursements payable in connection with the transferee’s application for approval of the transfer or preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (6) The amount calculated by subtracting the aggregate amount of the actual and estimated transfer expenses required to be listed under subsection (5) of this section from the amount identified in subsection (4) of this section. (7) The amount of any penalties or liquidated damages payable by the payee in the event of a breach of the transfer agreement by the payee. (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Section 4. A transfer of payment rights under sections 1 to 6 of this 2005 act is not effective and an obligor or annuity issuer is not required to make any payments directly or indirectly to a transferee unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by the court or authority that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of all persons for whom the payee is legally obligated to provide support. (2) The payee has been advised in writing by the transferee to seek advice from an attorney, certified public accountant, actuary or other licensed professional adviser regarding the transfer, and the payee has either received the advice or knowingly waived advice in writing. (3) The transfer does not contravene any applicable statute or order of any court or other government authority. Section 5. Following a transfer of payment rights under sections 1 to 6 of this 2005 act: (1) The obligor and the annuity issuer shall, as to all parties accept the transferee, be discharged and released from all liability for the transferred payments. (2) The transferee shall be liable to the obligor and the annuity issuer: (a) If the transfer contravenes the terms of the structured settlement agreement, for any taxes incurred by the parties as a consequence of the transfer; and (b) For any other liabilities or costs, including reasonable costs and attorney fees, arising from compliance by the parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with sections 1 to 6 of this 2005 act. (3) An annuity issuer or an obligor may not be required to divide any periodic payments between the payee and any transferee or assignee or between two or more transferees or assignees. (4) Any further transfer of payment rights by the payee may be made only after compliance with all of the requirements of sections 1 to 6 of this 2005 act. Section 6. (1) The provisions of sections 1 to 6 of this 2005 act may not be waived by any payee. (2) A transfer agreement entered into on or after the effective date of this 2005 act by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined under the laws of this state. A transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry to judgment against the payee. (3) a transfer of payment rights may not extend to any payments that are life contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the obligor for: (a) Periodically confirming the payee’s survival. (b) Giving the annuity issuer and the obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of payment rights does not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or an assignee based on any failure of the transfer to satisfy the conditions of sections 1 to 6 of this 2005 act. (5) Nothing in sections 1 to 6 of this 2005 act shall be construed to authorize a transfer of payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this 2005 act is valid or invalid. (6) Compliance with the requirements set forth in section 3 of this 2005 act and fulfillment of the conditions set forth in section 2 of this 2005 act shall be solely the responsibility of the transferee in any transfer of payment rights, and neither the obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. Section 7. Sections 1 to 6 of this 2005 act apply to transfer agreements entered into on or after the effective date of this 2005 act. Approved June 7, 2005 *This opportunity is not currently offered to persons residing in North Carolina.

Pennsylvania

Pennsylvania Structured Settlement Protection Act 40 P.S. §4002-4008 (2001) AN ACT 1. Regulating certain transfers of structured settlement payments. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Structured Settlement Protection Act. Section 2. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Annuity issuer.” An insurer, or subsidiary or affiliate thereof, that has issued an insurance contract used to fund periodic payments under a structured settlement. “Applicable law.” The laws of the United States, the laws of this Commonwealth and the laws of any other jurisdiction under whose laws a structured settlement agreement was approved by a court or responsible administrative authority. “Best interests.” The standard applicable to transfers of structured settlement payment rights based on judicial findings regarding the payee and his dependents, as required by section 3(3), unless if at the time the payee and the transferee enter into the transfer agreement, a different standard is contained in the Internal Revenue Code of 1986 (Public law 99-514, 26 U.S.C. § 1 et seq.) or in a United States Treasury regulation dopted pursuant thereto, then such different standard. “Dependents.” Include a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony. “Discounted present value.” The fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable Federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. “Favorable tax determination.” With respect to a proposed transfer of structured settlement payment rights, any of the following authorities that is binding on the parties to such transfer and on the parties to the structured settlement agreement and any qualified assignment agreement and that definitively establishes that the Federal income tax treatment of the structured settlement for the parties to the structured settlement agreement and any qualified assignment agreement, other than the payee, will not be affected by such transfer: (1) a provision of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) or United States Treasury regulation; 19990S0818B1611 (2) a published ruling by the United States Internal Revenue Service; (3) a private letter ruling by the United States Internal Revenue Service with respect to such transfer; or (4) other controlling legal authority that is binding on the United States Internal Revenue Service. 7 “Payee.” A person domiciled in this Commonwealth who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. “Periodic payments.” Payments made pursuant to a structured settlement agreement, including scheduled future lump sum payments. “Qualified assignment agreement.” An agreement providing for 14 a qualified assignment within the meaning of section 130 of the 15 Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 116 et seq.). “Settled claim.” The original personal injury or sickness claim or workers’ compensation claim resolved by a structured settlement. “Structured settlement.” An arrangement for periodic payment of damages established by settlement, judgment or decree in resolution of a settled claim. “Structured settlement agreement.” The agreement, judgment, decree, stipulation or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments. “Structured settlement obligor.” With respect to any structured settlement, the party that has the continuing obligation to provide periodic payments to the payee under a structured settlement agreement or a qualified assignmen 19990S0818B1611 -3 -agreement. “Structured settlement payment rights.” Rights to receive periodic payments under a structured settlement, whether from the settlement obligor or the annuity issuer, where the payee is domiciled in this Commonwealth. “Terms of the structured settlement.” Include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order, decree or approval of any court, or responsible administrative authority authorizing or approving such structured settlement. “Transfer.” Any direct or indirect sale, assignment, pledge, hypothecation or other form of alienation, redirection or encumbrance made by a payee for consideration, provided, however, that this shall not apply to a blanket security agreement used to secure a loan originating from a Federal or State-chartered lending institution. Any transfer made or agreed to under this act shall be considered to be a consumer transaction. “Transfer agreement.” The agreement providing for transfer of structured settlement payment rights from a payee to a transferee. “Transferee.” The party acquiring or proposing to acquire structured settlement payment rights through a transfer. Section 3. Conditions to transfers of structured settlement payment rights. (a) Petition.–No transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment to any transferee of structured settlement payment rights unless the 19990S0818B1611 – 4 – payee has filed a petition requesting such transfer and the petition has been granted by final order or decree of a court of competent jurisdiction based on such court’s express written findings that: (1) The transfer complies with the requirements of this act and will not contravene other applicable Federal or State statutes or regulations or any applicable law limiting the transfer of workers’ compensation claims. (2) Not less than ten days prior to the date on which the payee first incurred any obligation with respect to the transfer, the transferee has provided to the payee a disclosure statement setting forth all of the following: (i) The amounts and due dates of the structured settlement payments to be transferred. (ii) The aggregate amount of such payments. (iii) The discounted present value of such payments, together with the discount rate or rates used in determining such discounted present value. (iv) The gross amount payable to the payee in exchange for such payments. (v) An itemized listing of all brokers’ commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses and charges payable by the payee or deductible from the gross amount otherwise payable to the payee. (vi) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses and charges described in subclause (v). (vii) The quotient, expressed as a percentage, 19990S0818B1611 – 5 – obtained by dividing the net payment amount by the discounted present value of the payments. (viii) The amount of any penalty and the aggregate amount of any liquidated damages, inclusive of penalties, payable by the payee in the event of any breach of the transfer agreement by the payee. (3) The payee has established that the transfer is in the best interests of the payee or his dependents. (4) The payee has RECEIVED, OR expressly waived, in a separate written acknowledgment signed by the payee, independent legal advice regarding the implications of the transfer, including consideration of the tax ramifications of the transfer. (5) If the transfer would contravene the terms of the structured settlement: (i) the transfer has been expressly approved in writing by: (A) the payee, the structured settlement obligor and the annuity issuer; provided, however, that such approval may not be unreasonably withheld; and, further provided that the structured settlement obligor and the annuity issuer shall be required to consent to the transfer if the transferee has agreed to indemnify the structured settlement obligor and annuity issuer from all liabilities arising from the factoring transaction and compliance or noncompliance with this act and further provided that if at the time the payee and the transferee propose to enter into the transfer agreement, a favorable tax result is in effect, then the approval of the annuity issuer 19990S0818B1611 – 6 – and the structured settlement obligor shall not be required; and (B) any court or responsible administrative authority that previously approved the structured settlement; and (ii) signed originals of all approvals required under subparagraph (i) have been filed with the court from which the authorization of the transfer is being sought, and originals or copies have been furnished to the payee, the structured settlement obligor and the annuity issuer. (6) The payee has given written notice of the transferee’s name, address and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of such notice with the court. (b) Notice.–Prior to entering into any agreement to make a transfer under this act, the payee shall be provided with a written notice on a separate sheet that contains the following, in bold print and at least 12-point type: IMPORTANT NOTICE: You are strongly urged to consult with an attorney who can advise you of the potential tax consequences of this transaction. (c) Bonds.–If the indemnity in subsection (a)(5)(i)(A) is offered, the court shall require that the transferee obtain a surety bond or an irrevocable standby letter of credit to secure the indemnity obligation. In considering the necessity and amount of any bond, the court shall consider the size of the underlying transaction and the potential liabilities of the structured settlement obligor and annuity issuer. Section 4. Jurisdiction; procedure for approval of transfers.19990S0818B1611- 7 – The court of common pleas of the judicial district in which the payee is domiciled shall have jurisdiction over any petition as required under section 3 for a transfer of structured settlement payment rights. Not less than 20 days prior to the scheduled hearing on any petition for authorization of a transfer of structured settlement payment rights under section 3, the payee shall file with the court and serve on the transferee a notice of the proposed transfer and the application for its authorization, including in such notice a copy of the payee’s petition to the court, a copy of the transfer agreement, a copy of the disclosure statement required under section 3, notification that the transferee, the structured settlement obligor or the annuity issuer is entitled to support, oppose or 14 otherwise respond to the payee’s petition, either in person or by counsel, by submitting written comments to the court or by participating in the hearing and notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the petition must be filed, which shall be not less than 20 days after service of the payee’s notice, in order to be considered by the court. Section 5. Discharge of structured settlement obligor and annuity issuer. Upon an appropriate judicial order approving a petition for a transfer of structured settlement payment rights, the structured settlement obligor and annuity issuer shall be discharged from all liability for the payments and portions thereof transferred as to all parties except the transferee. Section 6. No waiver; no penalties. (a) Waiver.–The provisions of this act may not be waived. (b) Penalties.–No payee who files a petition for the 19990S0818B1611 – 8 – transfer of structured settlement payment rights shall incur any 2 penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee based on any failure of such transfer to satisfy the conditions of section 3. Section 7. Penalty. A violation of this act shall be deemed a violation of the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law. Section 8. Construction. Nothing contained in this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of applicable State statutes or regulations or to give effect to any transfer to structured settlement payment rights that is void under applicable State statutes or regulations. Section 9. Applicability. This act shall apply to any petition for the transfer of structured settlement payment rights under a transfer agreement sought on or after the effective date of this act, provided, however, that nothing contained in this act shall imply that any transfer under a transfer agreement reached prior to such date is effective or that any party is under any obligation to make transferred payments to the transferee of any such prior transfer. Section 10. Effective date. This act shall take effect in 60 days. *This opportunity is not currently offered to persons residing in North Carolina.

Rhode Island

Rhode Island structured settlement protection act State of Rhode Island In general assembly January session, a.d. 2001 An act Relating to insurance structured settlement protection act It is enacted by the general assembly as follows: Section 1. Title 27 of the general laws entitled “insurance” is hereby amended by adding thereto the following chapter: Chapter 9.3 state structured settlement protection act 27-9.3-1. Title. – – this chapter shall be known and referred to as the “structured settlement protection act.” 27-9.3-2. Definitions. — for purposes of this chapter: (a) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement; (b) “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony; (c) “discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the united states internal revenue service; (d) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration; (e) “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; (f) “independent parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; (g) “net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under section 27-9.3-3(e) of this chapter; (h) “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (i) “Periodic payments” includes both recurring payments and scheduled future lump sum payments; (j) “qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the united states internal revenue code, united states code title 26, as amended from time to time; (k) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (l) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement; (m) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (n) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement; (o) “Structured settlement obligor” means, with respect to any structured settlement, the party has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (p) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (i) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; or (ii) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (iii) The structured settlement agreement is expressly governed by the laws of this state; (q) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement; (r) “transfer” means any sale, assignment, pledge, hypothecation or another alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights; (s) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights; (t) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; “transfer expenses” do not include preexisting obligations of the payee payable for the payee’ s account from the proceeds of a transfer; (u) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 27-9.3-3. required disclosures to payee. — not less than three (3) days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen (14) points, setting forth: (a) The amounts and due dates of the structured settlement payments to be transferred; (b) The aggregate amount of such payments; (c) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the applicable federal rate used in calculating such discounted present value; (d) The gross advance amount; (e) an itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (f) The net advance amount; (g) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (h) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third (3rd) business day after the date the agreement is signed by the payee. 27-9.3-4. Approval of transfers of structured settlement payment rights. — (a) no direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: (i) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (ii) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (iii) The transfer does not contravene any applicable statute or the order of any court or other government authority. 27-9.3-5. Effects of transfer of structured settlement payment rights. — following a transfer of structured settlement payment rights under this chapter: (a) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (b) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (i) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (ii) for any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this chapter; (c) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two (2) (or more) transferees or assignees; and (d) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. 27-9.3-6. Procedure for approval of transfers. — (a) an application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approves the structured settlement agreement. (b) not less than twenty (20) days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 27-9.3-4, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with such notice: (i) A copy of the transferee’s application; (ii) A copy of the transfer agreement; (iii) A copy of the disclosure statement required under section 27-9.3-3 of this chapter; (iv) A listing of each of the payee’s dependents, together with each dependent’s age; (v) notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (vi) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed (which shall be not less than fifteen (15) days after service of the transferee’s notice) in order to be considered by the court or responsible administrative authority. 27-9.3-7. General provisions construction. – – (a) the provisions of this chapter may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this chapter by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) no transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for (i) periodically confirming the payee’s survival, and (ii) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this chapter. (e) Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this chapter is valid or invalid. (f) compliance with the requirements set forth in section 27-9.3-3 and fulfillment of the conditions set forth in section 27-9.3-4 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions. Section 2. This act shall take effect upon passage and shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the thirtieth (30th) day after the date of enactment of this chapter; provided, however, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to such Date is either effective or ineffective. Explanation by the legislative council of An act Relating to insurance structured settlement protection act This act would provide protection to beneficiaries of structured settlements by establishing procedures for proper notification, disclosure and approval of the transfer of a structured settlement payment right. This act would take effect upon passage and would apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after the thirtieth (30th) day after the date of enactment of this chapter; provided, however, that nothing contained herein would imply that any transfer under a transfer agreement reached prior to such date is either effective or ineffective. This act would take effect upon passage. *This opportunity is not currently offered to persons residing in North Carolina.

South Carolina

South Carolina 2002 session laws Act 252 H.b. no. 3943 Civil remedies An act to amend the code of laws of South Carolina, 1976, by adding chapter 50 to title 15 so as to enact the “structured settlement protection act”, which provides procedures to regulate the transfer of structured settlements, including provisions requiring court or administrative authority approval in advance for the transfer of structured settlement payment rights, and establishing disclosure requirements. Be it enacted by the general assembly of the state of South Carolina: Structured settlement protection act Section 1. Title 15 of the 1976 code is amended by adding: Chapter 50 Structured settlement Sc st §15-50-10 Section 15-50-10. This act may be cited as the “structured settlement protection act”. Sc st §15-50-20 Section 15-50-20. As used in this chapter: (1) “annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “dependents” include a payee’s spouse and minor children and all other persons for whom the payee legally is obligated to provide support, including alimony. (3) “discounted present value” means the present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the united states internal revenue service. (4) “gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before a reduction for transfer expenses or other deduction is made from the consideration. (5) “independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional advisor. (6) “interested parties” means, with respect to a structured settlement, the payee, a beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and another party that has continuing rights or obligations under the structured settlement. (7) “net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses that must be disclosed pursuant to section 15-50-30(5). (8) “payee” means an individual who is receiving tax-free payments under a structured settlement and who proposes to make a transfer of payment rights under the settlement. (9) “periodic payments” includes recurring payments and scheduled future lump- sum payments. (10) “qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the united states internal revenue code, united states code title 26. (11) “settled claim” means the original tort claim resolved by a structured settlement. (12) “structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. (13) “structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (14) “structured settlement obligor” means, with respect to a structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (15) “structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if the: (a) payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; or (b) structured settlement agreement was approved by a court in this state; or (c) structured settlement agreement is governed expressly by the laws of this state. (16) “terms of the structured settlement” include the terms of the structured settlement agreement, the annuity contract, a qualified assignment agreement, and an order or other approval of a court. (17) “transfer” means the sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; except that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of an action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest of it, or otherwise to enforce the blanket security interest against the structured settlement payment rights. (18) “transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. (19) “transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finder’s fees, commissions, and other payments to a broker or other intermediary. “transfer expenses” do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (20) “transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Sc st § 15-50-30 Section 15-50-30. Not less than three days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, including: (1) amounts and due dates of the structured settlement payments being transferred; (2) aggregate amount of the payments; (3) discounted present value of the payments being transferred, which must be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities”, and the amount of the applicable federal rate used in calculating the discounted present value; (4) gross advance amount; (5) itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of the fees and disbursements; (6) net advance amount; (7) amount of penalties or liquidated damages payable by the payee if the payee breaches the transfer agreement; and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Sc st §15-50-40 Section 15-50-40. A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directlyor indirectly to a transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that the: (1) transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents; (2) payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer or knowingly and in writing has waived receipt of that advice; and (3) transfer does not contravene an applicable statute or the order of any court or other government authority. Sc st §15-50-50 Section 15-50-50. Following a transfer of structured settlement payment rights pursuant to this chapter: (1) the structured settlement obligor and the annuity issuer, as to all parties except the transferee, are discharged and released from liability for the transferred payments; and (2) the transferee is liable to the structured settlement obligor and the annuity issuer: (a) for taxes incurred by the parties as a consequence of the transfer if the transfer contravenes the terms of the structured settlement; and (b) for other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this chapter; (3) neither the annuity issuer nor the structured settlement obligor is required to divide a periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (4) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all the requirements of this chapter. Sc st §15-50-60 Section 15-50-60. (a) an application pursuant to this chapter for approval of a transfer of structured settlement payment rights may be made by the transferee and may be brought in a court of competent jurisdiction, including the probate court if the transferee is a minor or the original settlement was approved by the probate court, in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court which approved the structured settlement agreement. (b) not less than twenty days before the scheduled hearing on an application for approval of a transfer of structured settlement payment rights pursuant to section 15-50-40, the transferee must file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization. The notice must include: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required pursuant to section 15-50-30; (4) a listing of each of the payee’s dependents, and each dependent’s age; (5) notification that an interested party may support, oppose, or otherwise respond to the transferee’s application, in person or by counsel, by submitting written comments to the court, or by participating in the hearing; and (6) notification of the time and place of the hearing and notification of the manner and the time for filing written responses to the application, which must be not less than fifteen days after service of the transferee’s notice, for consideration by the court. Sc st §15-50-70 Section 15-50-70. (a) the provisions of this chapter may not be waived by a payee. (b) a transfer agreement entered into on or after the effective date of this chapter by a payee who resides in this state must provide that disputes under the transfer agreement, including a claim that the payee has breached the agreement, must be determined pursuant to the laws of this state. A transfer agreement may not authorize the transferee or another party to confess judgment or consent to entry of judgment against the payee. (c) transfer of structured settlement payment rights do not extend to payments that are life-contingent unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) periodically confirming the payee’s survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice if the payee dies. (d) a payee who proposes to make a transfer of structured settlement payment rights does not incur any penalty, forfeit any application fee or other payment, or otherwise incur a liability to the proposed transferee or an assignee based on a failure of the transfer to satisfy the conditions of this chapter. (e) this chapter does not authorize a transfer of structured settlement payment rights in contravention of law nor imply that a transfer under a transfer agreement entered into before the effective date of this chapter is valid or invalid. (f) compliance with the requirements of section 15-50-30 and fulfillment of the conditions in section 15-50-40 are the sole responsibility of the transferee in a transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer bears responsibility for, or liability arising from, noncompliance with the requirements or failure to fulfill the conditions. Application Section 2. This act applies to a transfer of structured settlement payment rights under a transfer agreement entered into on or after thirty days of the date of enactment of this act; except that nothing contained in this act implies that a transfer under a transfer agreement reached before that date is either effective or ineffective. Time effective Section 3. This act takes effect upon approval by the governor. Ratified the 8th day of may, 2002. Approved the 14th day of may, 2002. *This opportunity is not currently offered to persons residing in North Carolina.

South Dakota

The South Dakota Structured Settlement Protection Statute 21-3B-1. Definitions. Terms used in this chapter mean: (1) “Annuity issuer,” an insurer that has issued a contract to fund periodic payments under a structured settlement; (2) “Dependents,” a payee’s spouse and any minor child and any other person for whom the payee is legally obligated to provide support, including alimony; (3) “Discounted present value,” the present value of future payments determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service; (4) “Gross advance amount,” the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration; (5) “Independent professional advice,” advice of an attorney, certified public accountant, actuary, or other licensed professional advisor; (6) “Interested parties,” with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; (7) “Net advance amount,” the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under § 21-3B-2(5); (8) “Payee,” an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder; (9) “Periodic payments,” includes both recurring payments and scheduled future lump sum payments; (10) “Qualified assignment agreement,” an agreement providing for a qualified assignment within the meaning of section 130 of the United States Internal Revenue Code, United States Code Title 26, as of January 1, 2001; (11) “Responsible administrative authority,” with respect to a structured settlement, any governmental authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (12) “Settled claim,” the original tort claim or workers’ compensation claim resolved by a structured settlement; (13) “Structured settlement,” an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim; (14) “Structured settlement agreement,” the agreement, judgment, stipulation, or release embodying the terms of a structured settlement; (15) “Structured settlement obligor,” with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement; (16) “Structured settlement payment rights,” rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if at least one of the following applies: (a) The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this state; or (b) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (c) The structured settlement agreement is expressly governed by the laws of this state; (17) “Terms of the structured settlement,” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement; (18) “Transfer,” any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. The term, transfer, does not include the creation of perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights; (19) “Transfer agreement,” the agreement providing for a transfer of structured settlement payment rights; (20) “Transfer expenses,” any expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorneys fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. Transfer expenses do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer; (21) “Transferee,” a party acquiring or proposing to acquire structured settlement payment rights through a transfer. 21-3B-2. Transferee to provide disclosure statement — Information required. Not less than three days before the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 points, setting forth the following information: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of such payments; (3) The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities” and the amount of the applicable federal rate used in calculating such discounted present value; (4) The gross advance amount; (5) An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (6) The net advance amount; (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. 21-3B-3. Transfer effective only upon order of court or administrative authority — Findings required. No direct or indirect transfer of structured settlement payment rights is effective and no structured settlement obligor or annuity issuer is required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on the following express findings by such court or responsible administrative authority: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (3) The transfer does not contravene any applicable statute or the order of any court or other government authority. 21-3B-4. Rights and obligations following transfer. Following a transfer of structured settlement payment rights under this chapter: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any liability for the transferred payments; (2) The transferee is liable to the structured settlement obligor and the annuity issuer: (a) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (b) For any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this chapter; (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. 21-3B-5. Application for approval of transfer to be made by transferee — Venue — Notice of proposed transfer. An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the structured settlement agreement. Not less than twenty days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under § 21-3B-3, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including the following with such notice: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under § 21-3B-2; (4) A listing of each of the payee’s dependents, together with each dependent’s age; (5) Notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (6) Notification of the time and place of the hearing and notification of the manner in which, and the time by which written responses to the application must be filed, which may not be less than fifteen days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. 21-3B-6. Payee may not waive provisions. The provisions of this chapter may not be waived by any payee. 21-3B-7. Disputes decided under state law. Any transfer agreement entered into on or after July 1, 2001, by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No such transfer agreement may authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. 21-3B-8. Life-contingent payments not to be transferred — Exception. No transfer of structured settlement payment rights may extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. 21-3B-9. No payee liability for failure to comply with chapter. No payee who proposes to make a transfer of structured settlement payment rights may incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this chapter. 21-3B-10. Effect of chapter on existing laws and transfer agreements. Nothing contained in this chapter authorizes any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to July 1, 2001, is valid or invalid. 21-3B-11. Transferee solely responsible for certain requirements. Compliance with the requirements set forth in § 21-3B-2 and fulfillment of the conditions set forth in § 21-3B-3 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer bears any responsibility for, or any liability arising from, noncompliance with such requirements or failure to fulfill such conditions. 21-3B-12. Applicability of chapter. This chapter applies to any transfer of structured settlement payment rights under a transfer agreement entered into on or after July 1, 2001. Nothing contained in this chapter implies that any transfer under a transfer agreement reached prior to such date is either effective or ineffective. *This opportunity is not currently offered to persons residing in North Carolina.

Tennessee

The Tennessee Structured Settlement Protection Statute TITLE 47. COMMERCIAL INSTRUMENTS AND TRANSACTIONS CHAPTER 18. CONSUMER PROTECTION PART 26–STRUCTURED SETTLEMENT PROTECTION § 47-18-2601. Short title This part shall be known and may be cited as the “Structured Settlement Protection Act.” 2000 Pub.Acts, c. 758, § 2, eff. May 23, 2000. § 47-18-2602. Definitions As used in this part, unless the context otherwise requires: (1) “Annuity insurer” means an insurer that has issued an insurance policy or annuity contract used to fund periodic payments under a structured settlement; (2) “Applicable law” means state or federal statutes of the United States; (3) “Dependents” include a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony; (4) “Discounted present value” means the present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the internal revenue service, and the present value of the payments to be transferred by the payee using the actual discount rate applied to the transfer, stated as an annual percentage rate; (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser; (6) “Interested parties” means, with respect to any structured settlement, the payee, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement; (7) “Payee” means an individual who is receiving tax-free damage payment sunder a structured settlement and proposes to make a transfer of payment rights thereunder; (8) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of 26 U.S.C. § 130, as amended from time to time; (9) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement; (10) “Settled claim” means the original tort claim; (11) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim; (12) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments; (13) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement; (14) “Structured settlement payment rights” means rights to receive periodic payments (including lump sum payments) under a structured settlement, whether from the settlement obligor or the annuity issuer where: (A) The payee is domiciled in this state; (B) The structured settlement agreement was approved by a court or responsible administrative authority in this state; or (C) The structured settlement agreement is governed by the laws of this state; (15) “Terms of the structured settlement” includes, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving such structured settlement; (16) “Transfer” means any sale, assignment, pledge, hypothecation, commutation, advance or other form of alienation or encumbrance made by a payee for consideration; and (17) “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee. § 47-18-2603. Transfer of structured settlement payment rights; disclosure statement No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final order of a court of competent jurisdiction or a responsible administrative authority, and complies with all of the following: (1) The transfer complies with the requirements of this part and will not contravene other applicable law; (2) Not less than ten (10) days prior to the date on which the payee executes the transfer agreement, the transferee has provided to the payee a disclosure statement in bold type, no smaller than fourteen (14) points, setting forth: (A) The amounts and due dates of the structured settlement payments to be transferred; (B) The aggregate amount of such payments; (C) The discounted present value of such payments, together with the discount rate used in determining such discounted present value; (D) The gross amount payable to the payee in exchange for such payments; (E) An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, administrative fees, notary fees and other commissions, fees, costs, expenses and charges, and a good faith estimate of all legal fees and court costs payable by the payee or deductible from the gross amount otherwise payable to the payee; (F) The net amount payable to the payee after deduction of all commissions, fees, costs, expenses and charges described in subdivision (2)(E); and (G) The amount of any penalty and the aggregate amount of any liquidated damages (inclusive of penalties) payable by the payee in the event of any breach of the transfer agreement by the payee; (3) The payee has established that the transfer is fair and reasonable and in the best interest of the payee; (4) The payee has been advised by the transferee, in writing, to seek independent professional advice regarding the financial, legal and tax implications of the transfer; and (5) The transferee has given written notice of the transferee’s name, address and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of such notice with the court or responsible administrative authority. § 47-18-2604. Jurisdiction; procedures; standards; liabilities; attorney’s fees and costs (a) The circuit court shall have nonexclusive jurisdiction over any application for authorization under § 47-18-2603 of a transfer of structured settlement payment rights. (b) Not less than twenty (20) days prior to the scheduled hearing on any application for authorization of a transfer of structured settlement payment rights under § 47-18-2603, the transferee shall file with the court or responsible administrative authority and serve on any other government authority which previously approved the structured settlement, and on all interested parties, a notice of the proposed transfer and the application for its authorization, including in such notice: (1) A copy of the transferee’s application; (2) A copy of the transfer agreement; (3) A copy of the disclosure statement required under § 47-18-2603(2); (4) Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (5) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed (which shall be not less than fifteen (15) days after service of the transferee’s notice) in order to be considered by the court or responsible administrative authority. (c) In determining whether the transfer is in the payee’s best interest under § 47-18-2603(3), the court should consider: (1) The terms of the transfer; (2) Whether the payee has other sources of income, other than the structured settlement payment rights to be transferred; (3) The effect of the transfer, if any, on the payee’s dependents and whether the transfer would be likely to result in financial hardship for such dependents; and (4) If a payee is currently required by a court order, judgment, or decree to pay child support or alimony, the effect of the transfer on the payee’s ability to continue to pay such support or alimony. (d) The structured settlement obligor and annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. (e) The transferee and any assignee shall be liable to the structured settlement obligor and the annuity issuer for any and all taxes and other costs and liabilities, other than costs incurred in opposing the transfer, incurred as a result of complying with the court order approving the transfer. (f) Neither the annuity issuer nor the structured settlement obligor may be required to divide any structured settlement payment between the payee and any transferee or assignee or between two (2) or more transferees or assignees. (g) If any party acting in bad faith withholds consent to the transfer, the court may, in its discretion, award the prevailing party reasonable attorney fees and costs. § 47-18-2605. Waiver; failure to comply (a) The provisions of this part may not be waived. (b) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee based on any failure of such transfer to satisfy the conditions of § 47-18-2603. § 47-18-2606. Construction Nothing contained in this part shall be construed to authorize any transfer of structured settlement payment rights in contravention of applicable law or to give effect to any transfer of structured settlement payment rights that is invalid under applicable law. § 47-18-2607. Application This part shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after June 23, 2000; provided, that nothing contained herein shall imply that any transfer under a transfer agreement reached prior to June 23, 2000 is ineffective. 2000 Pub.Acts, c. 758, § 8, eff. May 23, 2000. TN ST § 47-18-2607 *This opportunity is not currently offered to persons residing in North Carolina.

Texas

The Texas Structured Settlement Protection Statute CIVIL PRACTICE AND REMEDIES CODE Title 6. MISCELLANEOUS PROVISIONS Chapter 141. STRUCTURED SETTLEMENT PROTECTION ACT Current through End of 2001 Regular Session § 141.001. Short Title. This chapter may be cited as the Structured Settlement Protection Act. § 141.002. Definitions . In this chapter: (1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Court” means: (A) the court of original jurisdiction that authorized or approved a structured settlement; or (B) if the court that authorized or approved the structured settlement no longer has jurisdiction to approve a transfer of payment rights under the structured settlement under this chapter, a statutory county court or a district court located in the county in which the payee resides. (3) “Dependents” includes a payee’s spouse, minor children, and all other persons for whom the payee is legally obligated to provide support, including alimony. (4) “Discounted present value” means the present value of future payments determined by discounting the payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (5) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. (6) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (7) “Interested party” means, with respect to any structured settlement: (A) the payee; (B) any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death; (C) the annuity issuer; (D) the structured settlement obligor; and (E) any other party that has continuing rights or obligations under the structured settlement. (8) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Section 141.003(5). (9) “Payee” means an individual who is receiving tax-free payments under a structured settlement and proposes to transfer payment rights under the structured settlement. (10) “Periodic payments” includes both recurring payments and scheduled future lump-sum payments. (11) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130, Internal Revenue Code of 1986 (26 U.S.C. Section 130), as amended. (12) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. (13) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. (14) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, if: (A) the payee is domiciled in or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (B) the structured settlement agreement was authorized or approved by a court located in this state; or (C) the structured settlement agreement is expressly governed by the laws of this state. (17) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of the court. (18) “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration, except that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or its agent or successor in interest, or to enforce the blanket security interest against the structured settlement payment rights. (19) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. (20) “Transfer expenses” means all the expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney’s fees, escrow fees, lien recording fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary, except that the term does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (21) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. § 141.003. Required Disclosures to Payee . At least three days before the date on which the payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type at least 14 points in size, that states: (1) the amounts and due dates of the structured settlement payments to be transferred; (2) the aggregate amount of the payments; (3) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating the discounted present value; (4) the gross advance amount; (5) an itemized listing of all applicable transfer expenses, other than attorney’s fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of those expenses; (6) the net advance amount; (7) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. § 141.004. Approval of Transfers of Structured Settlement Payment Rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that: (1) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and (3) the transfer does not contravene any applicable statute or an order of any court or other governmental authority. § 141.005. Effects of Transfer of Structured Settlement Payment Rights. Following a transfer of structured settlement payment rights under this chapter: (1) the structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) the transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this chapter; (3) the transferee shall be liable to the payee: (A) if the transfer contravenes the terms of the structured settlement, for any taxes incurred by the payee as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney’s fees, arising as a consequence of the transferee’s failure to comply with this chapter; (4) neither the structured settlement obligor nor the annuity issuer may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and (5) any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. § 141.006. Procedure for Approval of Transfers. (a) An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and shall be brought in the court. (b) At least 20 days before the date of the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 141.004, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for authorization, including with the notice: (1) a copy of the transferee’s application; (2) a copy of the transfer agreement; (3) a copy of the disclosure statement required under Section 141.003; (4) a listing of each of the payee’s dependents, together with each dependent’s age; (5) notice that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (6) notice of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed to be considered by the court. (c) Written responses to the application under Subsection (b)(6) must be filed on or after the 15th day after the date the transferee’s notice is served. § 141.007. Construction. (a) The provisions of this chapter may not be waived by any payee. (b) Any transfer agreement entered into by a payee who resides in this state must provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. The transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) Transfer of structured settlement payment rights may not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and agreed to maintain procedures reasonably satisfactory to the structured settlement obligor and the annuity issuer for: (1) periodically confirming the payee’s survival; and (2) giving the structured settlement obligor and the annuity issuer prompt written notice in the event of the payee’s death. (d) A payee who proposes to make a transfer of structured settlement payment rights may not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the conditions of this chapter. (e) Nothing contained in this chapter may be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into before the effective date of this chapter is valid or invalid. (f) Compliance with the requirements in Section 141.003 and fulfillment of the conditions in Section 141.004 are solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. *This opportunity is not currently offered to persons residing in North Carolina.

Utah

The Utah Structured Settlement Protection Statute S.B. 163 – Effective Date May 6, 2002 Structured Settlement Agreements 2002 general session State of Utah This act enacts the Structured Settlement Protection Act. It provides guidelines for transferring structured settlements. It also requires notice and hearing requirements and provides for agreements to be approved by a court. This act provides an effective date. This act affects sections of Utah Code Annotated 1953 as follows: AMENDS: 70A-9a-109, as enacted by Chapter 252, Laws of Utah 2000 ENACTS: 78-59-101, Utah Code Annotated 1953 78-59-102, Utah Code Annotated 1953 78-59-103, Utah Code Annotated 1953 78-59-104, Utah Code Annotated 1953 78-59-105, Utah Code Annotated 1953 78-59-106, Utah Code Annotated 1953 78-59-107, Utah Code Annotated 1953 78-59-108, Utah Code Annotated 1953 Be it enacted by the Legislature of the state of Utah: Section 1. Section 70A-9a-109 is amended to read: 70A-9a-109. Scope. (1) Except as otherwise provided in Subsections (3) and (4), this chapter applies to: (a) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (b) An agricultural lien; (c) A sale of accounts, chattel paper, payment intangibles, or promissory notes; (d) A consignment; (e) A security interest arising under Section 70A-2-401 or 70A-2-505 or Subsection 70A-2-711(3) or 70A-2a-508(5), as provided in Section 70A-9a-110; and (f) A security interest arising under Section 70A-4-210 or 70A-5-118. (2) The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply. (3) This chapter does not apply to the extent that: (a) A statute, regulation, or treaty of the United States preempts this chapter; (b) Another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state; (c) a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or (d) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 70A-5-114. (4) This chapter does not apply to: (a) A landlord’s lien, other than an agricultural lien; (b) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 70A-9a-333 applies with respect to priority of the lien; (c) An assignment of a claim for wages, salary, or other compensation of an employee; (d) a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose; (e) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only; (f) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract; (g) an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness; (h) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds; (i) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral; (j) A right of recoupment or set-off, but: (i) Section 70A-9a-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and (ii) Section 70A-9a-404 applies with respect to defenses or claims of an account debtor; (k) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for: (i) Liens on real property in Sections 70A-9a-203 and 70A-9a-308; (ii) Fixtures in Section 70A-9a-334; (iii) Fixture filings in Sections 70A-9a-501, 70A-9a-502, 70A-9a-512, 70A-9a-516, and 70A-9a-519; and (iv) Security agreements covering personal and real property in Section 70A-9a-604; (l) An assignment of a claim arising in tort, other than a commercial tort claim, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds; [or] (m) An assignment of a deposit account in a consumer transaction, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds[.]; (n) An assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. 104(a)(1) or (2); or (o) An assignment of a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. 1396p(d)(4). (5) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS SECTION, SUBSECTIONS (4)(n) AND (o) SHALL ONLY BE EFFECTIVE TO SECURITY INTERESTS CREATED ON OR AFTER MAY 6, 2002. Section 2. Section 78-59-101 is enacted to read: CHAPTER 59. STRUCTURED SETTLEMENT PROTECTION ACT 78-59-101. Title. This chapter is known as the “Structured Settlement Protection Act.” Section 3. Section 78-59-102 is enacted to read: 78-59-102. Definitions. For purposes of this chapter: (1)”Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. (3) “Discounted present value” means the present value of future payments determined by discounting the payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (4) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. (6) “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under the structured settlement. (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under Subsection 78-59-103(5). (8) “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights under the settlement. (9) “Periodic payments” includes both recurring payments and scheduled future lump sum payments. (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code. (11) “Responsible administrative authority” means, with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. (12) “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. (13) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. (14) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (15) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (16) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (a) the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in this state; (b) the structured settlement agreement was approved by a court in this state; or (c) The structured settlement agreement is expressly governed by the laws of this state. (17) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement and any order or other approval of any court or other government authority that authorized or approved the structured settlement. (18) “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term “transfer” does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce a blanket security interest against the structured settlement payment rights. (19) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. (20) “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “Transfer expenses” do not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. (21) “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. Section 4. Section 78-59-103 is enacted to read: 78-59-103. Required disclosures to payee. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than 14 point, setting forth: (1) The amounts and due dates of the structured settlement payments to be transferred; (2) The aggregate amount of the payments; (3) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating the discounted present value; (4) The gross advance amount; (5) an itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any of the fees and disbursements; (6) The net advance amount; (7) The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. Section 5. Section 78-59-104 is enacted to read: 78-59-104. Approval of transfers of structured settlement payment rights. Direct or indirect transfer of structured settlement payment rights may not be effective and a structured settlement obligor or annuity issuer may not be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that: (1) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; (2) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and (3) The transfer does not contravene any applicable statute or the order of any court or other government authority. Section 6. Section 78-59-105 is enacted to read: 78-59-105. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this chapter: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments. (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (a) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by the parties as a consequence of the transfer; and (b) For any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by the parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this chapter. (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees. (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. Section 7. Section 78-59-106 is enacted to read: 78-59-106. Procedure for approval of transfers. (1) An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the county in which the payee resides, in the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court which approved the structured settlement agreement. (2) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under Section 78-59-104, the transferee shall 215 file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with the notice: (a) A copy of the transferee’s application; (b) A copy of the transfer agreement; (c) A copy of the disclosure statement required under Section 78-59-103; (d) A listing of each of the payee’s dependents, together with each dependent’s age; (e) notification that any interested party is entitled to support, oppose, or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and (f) notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed, which shall be not less than 15 days after service of the transferee’s notice, in order to be considered by the court or responsible administrative authority. Section 8. Section 78-59-107 is enacted to read: 78-59-107. General provisions — Construction. (1) The provisions of this chapter may not be waived by any payee. (2) Any transfer agreement entered into on or after May 6, 2002 by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. A transfer agreement may not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (3) The transfer of structured settlement payment rights may not extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (a) Periodically confirming the payee’s survival; and (b) Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (4) A payee who proposes to make a transfer of structured settlement payment rights may not incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the requirements of this chapter. (5) Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to May 6, 2002 is valid or invalid. (6) Compliance with the requirements set forth in Section 78-59-103 and fulfillment of the conditions set forth in Section 78-59-104 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with the requirements or failure to fulfill the conditions. Section 9. Section 78-59-108 is enacted to read: 78-59-108. Effective date. This act shall apply to any transfer of structured settlement payment rights under a transfer agreement entered into on or after May 6, 2002; provided, however, that nothing contained in this chapter shall imply that any transfer under a transfer agreement reached prior to that date is either effective or ineffective. *This opportunity is not currently offered to persons residing in North Carolina.

Vermont

Journal of the Senate SATURDAY, MAY 5, 2012 The senate was called to order by the President. Devotional Exercises A moment of silence was observed in lieu of devotions. Joint Senate Resolution Adopted on the Part of the Senate Joint Senate resolution of the following title was offered, read and adopted on the part of the Senate, and is as follows: By Senator Campbell, J.R.S. 63. Joint resolution relating to final adjournment of the General Assembly in 2012. Resolved by the Senate and House of Representatives That when the President of the Senate and the Speaker of the House of Representatives adjourn their respective houses on the fifth day of May, 2012, they shall do so to reconvene on the twenty-second day of May, 2012, at ten o’clock in the forenoon if the Governor should fail to approve and sign any bill and should he return it to the house of origin with his objections in writing after such adjournment, but if the Governor should not so return any bill to either house, to be adjourned sine die. Joint Senate Resolution Adopted on the Part of the Senate Joint Senate resolution of the following title was offered, read and adopted on the part of the Senate, and is as follows: By Senator Campbell, J.R.S. 64. Joint resolution honoring the competitive accomplishments and international educational outreach of the University of Vermont’s Lawrence Debate Union. Whereas, debate is a defining characteristic of Vermont at the dinner table in the classroom, during a traditional town meeting, and in the legislative chamber of the state house in Montpelier, and Whereas, for over a century, University of Vermont (UVM) students have mastered the fine art of debate through participation in the Lawrence Debate Union (LDU), which ardent student debater Edwin W. Lawrence founded in 1899 and then helped to establish an endowment to perpetuate this most civilized form of verbal fisticuffs for future generations of UVM Catamounts to enjoy, and Whereas, the LDU has distinguished itself among collegiate debate programs by earning an astounding International Debate Education Association global ranking of seven, immediately behind Oxford and Cambridge Universities in Great Britain and surpassing Harvard, and Whereas, this highly commendable evaluation resulted from LDU members winning debates across the globe against top competitors, and Whereas, at the 2012 U.S. Universities Debating championship held in Oregon, three UVM debaters – Paul Gross (sixth), Jessica Bullock (seventh), and Drew Adamczyk (ninth) – were ranked among the top ten debaters in the United States, and no other competing school matched this feat, and Whereas, the members of the LDU are goodwill ambassadors for both UVM and our nation as they have conducted debating workshops since 1999 throughout the United States, in rural areas and inner cities, and abroad in Bangladesh, Chile, China, Estonia, Finland, Japan, Greece, Iraq, Latvia, Malaysia, Montenegro, Qatar, Serbia, Singapore, Slovenia, South Korea, Thailand, the United Kingdom, and Venezuela, proving that debaters are skilled diplomats, and Whereas, the LDU is fortunate to have Professor Alfred Snider affectionately known as Tuna, as its director, and outstanding faculty coaches David Register and Mary Nugent lend their expertise to the training of these truly talented and dedicated debaters, now therefore be it Resolved by the Senate and House of Representatives: That the General Assembly honors the competitive accomplishments and international educational outreach of the University of Vermont’s Lawrence Debate Union, and it be further Resolved: That the Secretary of State be directed to send a copy of this resolution to Professor Alfred Snider at the University of Vermont. Rules Suspended; Joint Senate Resolutions Messaged On motion of Senator Campbell, the rules were suspended, and the following joint Senate resolutions were severally ordered messaged to the House forthwith: J.R.S. 63, J.R.S. 64. Report of Committee of Conference Accepted and Adopted on the Part of the Senate H.778 Senator Nitka, for the Committee of Conference, submitted the following report: To the Senate and House of Representatives: The Committee of Conference to which were referred the disagreeing votes of the two House upon House bill entitled: An act relating to structured settlements. Respectfully reports that it has met and considered the same and recommends that the House and Senate recede from their respective proposals of amendment and that the bill be amended by striking out all after the enacting clause and inserting in lieu thereof the following: Sec. 1. 9 V.S.A. chapter 63, subchapter 5 is added to read: Subchapter 5. Transfers of Structured Settlements 2480aa. LEGISLATIVE INTENT: PUBLIC POLICY Structured settlement agreements, which provide for payments to a person over a period of time, are often used in the settlement of actions, such as personal injury or medical claims, and serve a number of valid purposes, including protection of persons from economic victimization and assuring a person’s ability to provide for his or her future needs and obligations. It is the policy of this state that such agreements, which have often been approved by a court, should not be set aside lightly or without good reason. 2480bb. DEFINITIONS In this subchapter: (1) “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. (2) “Dependents” includes a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. (3) “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (4) “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. (5) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser meeting all of the following requirements: (A) The advisor is engaged by the payee to render advice concerning the legal, tax, or financial implications of a structured settlement or a transfer of structured settlement payment rights: (B) The adviser’s compensation for rendering independent professional advice is not affected by occurrence or lack of occurrence of a settlement transfer; and (C) A particular adviser is not referred to the payee by the transferee or its agent, except that the transferee may refer the payee to a lawyer referral service or agency operated by a state or local bar association. (6) “Interested parties” means, with respect to any structured settlement, the payee , any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations relating to the structured settlement payment rights which are the subject of the proposed transfer. (7) “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision 2480cc(5) of this title. (8) “Payee” means an individual who is receiving tax-free payments under a structured settlement and proposed to make a transfer of payment rights thereunder. (9) “Periodic payments” includes both recurring payments and scheduled future lump sum payments. (10) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. (11) “Settled claim” means the original tort claim resolved by a structured settlement. (12) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim but does not refer to periodic payments in settlement of a workers’ compensation claim. (13) “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. (14) “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. (15) “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where: (A) The payee is domiciled in this state; or (B) The structured settlement agreement was approved by a court in this state. (16) “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or other government authority that authorized or approved such structured settlement. (17) “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration. (18) “Transfer agreement” means the agreement providing for a transfer of structured settlement payment rights. (19) “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorney’s fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. (20) “Transferee” means a party acquiring or proposing to acquire structured settlement payments rights through a transfer. 2480cc. REQUIRED DISCLOSURES TO PAYEE Not less than ten days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement in bold type in a size no smaller than 14 points setting forth: (1) the amounts and due dates of the structured settlement payments to be transferred; (2) the aggregate amount of such payments; (3) the discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the applicable federal rate used in calculating such discounted present value; (4) the gross advance amount and the annual discount rate, compounded monthly used to determine such figure; (5) an itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable by the payee in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; (6) the net advance amount; (7) the amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee, as well as a description of any other financial penalties the payee might incur with the transferee as a result of such a breach: and (8) a statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation at any time before the date on which a court enters a final order approving the transfer agreement. 2480dd. APPROVAL OF TRANSFERS OF STRUCTURED SETTLEMENT PAYMENT RIGHTS (a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express finding by such court that: (1) the transfer is in the best interest of the payee taking into account the welfare and support of the payee’s dependents, considering all relevant factors, including: (A) the payee’s ability to understand the financial terms and consequences of the transfer; (B) the payee’s capacity to meet his or her financial obligations, including the potential need for future medical treatment; (C) the need, purpose, or reason for the transfer; and (D) whether the transfer is fair and reasonable, considering the discount rate used to calculate the gross advance amount, the fees and expenses on the payee, and whether the payee obtained more than one quote for the same or a substantially similar transfer. (2)(A) the payee has been advised in writing by the transferee to seek independent professional advice regarding the financial advisability of the transfer and the other financial options available to the payee, if any, and : (B)(i) that the payee has in fact received such advice; (ii) that such advice is unnecessary for good cause shown. (3) the transfer does not contravene any applicable statute or the order of any court or other government authority. (b) Any agreement to transfer future payments arising under a workers’ compensation claim in prohibited. (c) At the hearing on the transfer the court may, in its sole discretion, continue the hearing and require the payee to seek independent professional advice if the court determines that obtaining such advice should be required based on the circumstances of the payee or the terms of the transaction. If the court determines that the costs incurred by a payee for independent professional advice be paid by the transferee, the payee, or another party, provided that the amount to be paid by the transferee shall not exceed on thousand five hundred dollars ($1,500.00). 2480ee. EFFECTS OF TRANSFER OF STRUCUTURED SETTLEMENT PAYMENT RIGHTS Following a transfer of structured settlement payment rights under this subchapter: (1) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (2) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) if the transfer for contravenes the terms of the structured settlement for any taxes incurred by such parties as a consequence of the transfer; and (B) for any other liabilities or costs, including reasonable costs and attorney’s fees, arising from compliance by such parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this subchapter: (3) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignee; and (4) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this subchapter. 2480ff. PROCEDURE FOR APPROVAL OF TRANSFERS (a) An application under this subchapter for approval of a transfer of structured settlement payments rights shall be made by the transferee and may be brought in the superior court, civil division, of the county in which the payee resides or in which the structured settlement obligor or the annuity issuer maintains its principal place of business or in any court that approved the structured settlement agreement. (b) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under section 2480dd of this title, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, including with such notice: (1) a copy of any court order approving the settlement; (2) a written description of the underlying basis for the settlement; (3) a copy of the transferee’s application; (4) a copy of the transfer agreement; (5) a copy of the disclosure statement required under section 2481n of this title; (6) a listing of each of the payee’s dependents, together with each dependent’s age; (7) a statement setting forth whether, to the best of the transferee’s knowledge after making a reasonable inquiry to the payee, the structured settlement obligor, and the annuity issuer, there have been any previous transfers or applications for transfer of any structured settlement payment rights of the payee and giving details of all such transfers or applications for transfer; (8) if available to the transferee after making a good faith request of the payee, the structured settlement obligor and the annuity issuer, the follow documents, which shall be filed under seal: (A) a copy of the annuity contract; (B) a copy of any qualified assignment agreement (C) a copy of the underlying structured settlement agreement (9) either a certification from an independent professional advisor establishing that the advisor has given advice to the payee on the financial advisability of the transfer and the other financial options available to the payee or a written request that the court determine that such advice is unnecessary pursuant to subdivision 2480dd(a)(2) of this title; and (10) notification of the time and place of the hearing and notification of the manner in qhich and the time by which written responses to the application must be filed, which shall be not less than 15 days after service of the transferee’s notice, in order to be considered by the court. (c) The transferee shall file a copy of the application with attorney general’s office and a copy of the application and the payee’s social security number with the office of child support, the department of taxes, and the department of financial regulation. The offices and departments receiving department of financial regulation. The offices and departments receiving copies pursuant to this section shall permit the copies to be filed electronically. (d) The payee shall attend the hearing unless attendance is excused for good cause. 2480gg. GENERAL PROVISIONS: Construction (a) The provisions of this subchapter may not be waived by any payee. (b) Any transfer agreement entered into on or after the effective date of this subchapter by a payee who resides in this state shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined and under the laws of this state. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (1) periodically confirming the payee’s survival; and (2) giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this subchapter. (e) Nothing contained in this subchapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to the effective date of this subchapter is valid or invalid. (f) Compliance with the requirements set forth in section 2480cc of this title and fulfillment of the conditions set forth in section 2480dd of this title shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for or any liability arising from noncompliance with such requirements or failure to fulfill such conditions. Sec. 2. 9 V.S.A. 2451 is amended to read: 2451. PURPOSE The purpose of this chapter is to complement the enforcement of federal statutes and decisions governing unfair methods of competition unfair or deceptive acts or practices, and anti-competitive practices in order to protect the public, and to encourage fair and honest competition. Sec. 3. 9 V.S.A. 2451 is amended to read: 241a. DEFINITIONS For the purposes of this chapter: (a) “Consumer” means any person who purchases, leases, contracts for, or otherwise agrees to pay considerations for goods or services not for resale in the ordinary course of his or her trade or business but for his or her use or benefit or the use or benefit of a member of his or her household, or in connection with the operation of his or her household or a farm whether or not the farm is conducted as a trade or business, or a person who purchases, leases, contracts for, or otherwise agrees to pay consideration for goods or services not for resale in the ordinary course of his or her trade or business but for the use or benefit of his or her business or in connection with the operation of his or her business. (3) is known by the person to be about to lodge a complaint or testify, assist, or participate in any manner in an investigation of acts or practices which are collusive or in restraint of trade; or (4) is believed by the person to have acted as described in subdivision (1), (2), or (3) of this subsection. Sec. 6. EFFECTIVE DATES (a) Sec. 1 of this act shall take effect on July 1, 2012. (b) Secs. 2, 3, 4, and 5 of this act and this section shall take effect on passage. And that after passage the title of the bill be amended to read: “An act relating to structured settlements and to prohibiting collusion as an antitrust violation.” ALICE W. NITKA DIANE B. SNELLING JEANETTE K. WHITE Committee on the part of the Senate THOMAS F. KOCH LINDA J. WAITE-SIMPSON ELDRED M. FRENCH Committee on the part of the House Thereupon, the question, Shall the Senate accept and adopt the report of the Committee of Conference? , was decided in the affirmative. Message from the House No. 85 A message was received from the House of Representatives by Ms. H. Gwynn Zakov, its Second Assistant Clerk, as follows: Mr. President: I am directed to inform the Senate that: The house has considered Senate proposal of amendment to Senate bill of the following title: S.106. An act relating to miscellaneous changes to municipal law. And has severally concurred therein with a further proposal of amendment thereto, in the adoption of which the concurrence of the Senate is requested.

Virginia

The Virginia Structured Settlement Protection Statute § 59.1-475. Definitions. For purposes of this chapter: “Annuity issuer” means an insurer that has issued a contract to fund periodic payments under a structured settlement. “Dependents” include a payee’s spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. “Discounted present value” means the present value of future payments determined by discounting such payments to the present using the most recently published Applicable Federal Rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. “Gross advance amount” means the sum payable to the payee or for the payee’s account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from such consideration. “Independent professional advice” means advice of an attorney, certified public accountant, actuary or other licensed professional adviser. “Interested parties” means, with respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee’s death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. “Net advance amount” means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision 5 of § 59.1-475.1. “Payee” means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. “Periodic payments” includes both recurring payments and scheduled future lump sum payments. “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of § 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. “Responsible administrative authority” means, with respect to a structured settlement, any governmental authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. “Settled claim” means the original tort claim or workers’ compensation claim resolved by a structured settlement. “Structured settlement” means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers’ compensation claim. “Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement. “Structured settlement obligor” means, with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. “Structured settlement payment rights” means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where the payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this Commonwealth; or the structured settlement agreement was approved by a court or responsible administrative authority in this Commonwealth; or the structured settlement agreement is expressly governed by the laws of this Commonwealth. “Terms of the structured settlement” include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved such structured settlement. “Transfer” means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; however, the term “transfer” shall not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights. “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights. “Transfer expenses” means all expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys’ fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary; however, “transfer expenses” shall not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer. “Transferee” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. § 59.1-475.1. Required disclosures to payee. Not less than three days prior to the date on which a payee signs a transfer agreement, the transferee shall provide to the payee a separate disclosure statement, in bold type no smaller than fourteen points, setting forth: 1. The amounts and due dates of the structured settlement payments to be transferred; 2. The aggregate amount of such payments; 3. The discounted present value of the payments to be transferred, which shall be identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” and the amount of the Applicable Federal Rate used in calculating such discounted present value; 4. The gross advance amount; 5. An itemized listing of all applicable transfer expenses, other than attorneys’ fees and related disbursements payable in connection with the transferee’s application for approval of the transfer, and the transferee’s best estimate of the amount of any such fees and disbursements; 6. The net advance amount; 7. The amount of any penalties or liquidated damages payable by the payee in the event of any breach of the transfer agreement by the payee; and 8. A statement that the payee has the right to cancel the transfer agreement, without penalty or further obligation, not later than the third business day after the date the agreement is signed by the payee. § 59.1-476. Approval of transfers of structured settlement payment rights. No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been authorized in advance in a final court order or order of a responsible administrative authority based on express findings by such court or responsible administrative authority that: 1. The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents; 2. The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and 3. The transfer does not contravene any applicable statute or the order of any court or other government authority. § 59.1-476.1. Effects of transfer of structured settlement payment rights. Following a transfer of structured settlement payment rights under this chapter: 1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; 2. The transferee shall be liable to the structured settlement obligor and the annuity issuer: a. If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and b. For any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by such parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee’s failure to comply with this chapter; 3. Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and 4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of this chapter. § 59.1-477. Procedure for approval of transfers. A. An application under this chapter for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the state in which the payee resides, in the state in which the structured settlement obligor or the annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority that approved the structured settlement agreement. Applications brought in Virginia shall be brought in circuit court, and such court may refer the matter to a commissioner of accounts for a report to such court and a recommendation on the findings required by § 59.1-476. Such report and recommendation shall be filed with the court and mailed to all interested parties served under subsection B of this section, and such report and recommendation and any exceptions thereto shall be examined by the court and confirmed or corrected as provided in § 26-33. B. Not less than twenty days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under § 59.1-476, the transferee shall file with the court or responsible administrative authority and serve on all interested parties a notice of the proposed transfer and the application for its approval, including with such notice: 1. A copy of the transferee’s application; 2. A copy of the transfer agreement; 3. A copy of the disclosure statement required under § 59.1-475.1; 4. A listing of each of the payee’s dependents, together with each dependent’s age; 5. Notification that any interested party is entitled to support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or responsible administrative authority or by participating in the hearing; and 6. Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application must be filed (which shall be not less than fifteen days after service of the transferee’s notice) in order to be considered by the court or the responsible administrative authority. § 59.1-477.1. General provisions, construction. A. The provisions of this chapter may not be waived by any payee. B. Any transfer agreement entered into on or after the effective date of the act of the General Assembly enacting this section by a payee who resides in this Commonwealth shall provide that disputes under such transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this Commonwealth. No such transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. C. No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival, and giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. D. No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this chapter. E. Nothing contained in this chapter shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to July 1, 2001, is valid or invalid. The provisions of this chapter shall not be applicable to payments made pursuant to § 65.2-522. F. Compliance with the requirements set forth in § 59.1-475.1 and fulfillment of the conditions set forth in § 59.1-476 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any other liability arising from, non-compliance with such requirements or failure to fulfill such conditions. *This opportunity is not currently offered to persons residing in North Carolina.

Washington

The Washington Structured Settlement Protection Statute Cite as Washington Laws Chapter 19; §178 et al. ENGROSSED HOUSE BILL 1347 AS AMENDED BY THE SENATE Passed Legislature – 2001 Regular Session State of Washington 57th Legislature 2001 Regular Session By Representatives Benson and Hatfield Read first time 01/24/2001. Referred to Committee on Financial Institutions & Insurance. AN ACT Relating to creating the structured settlement protection 1 act; and adding a new chapter to Title 19 RCW. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: 3 NEW SECTION. Sec. 1. This chapter may be known and cited as the 4 structured settlement protection act. 5 NEW SECTION. Sec. 2. The definitions in this section apply 6 throughout this chapter unless the context clearly requires otherwise. 7 (1) “Annuity issuer” means an insurer that has issued a contract to 8 fund periodic payments under a structured settlement. 9 (2) “Dependents” means a payee’s spouse and minor children and all 10 other persons for whom the payee is legally obligated to provide 11 support, including alimony. 12 (3) “Discounted present value” means the present value of future 13 payments determined by discounting such payments to the present using 14 the most recently published applicable federal rate for determining the 15 present value of an annuity, as issued by the United States internal 16 revenue service. 17 p. 1 EHB 1347.SL (4) “Gross advance amount” means the sum payable to the payee or 1 for the payee’s account as consideration for a transfer of structured 2 settlement payment rights before any reductions for transfer expenses 3 or other deductions to be made from such consideration. 4 (5) “Independent professional advice” means advice of an attorney, 5 certified public accountant, actuary, or other licensed professional 6 adviser. 7 (6) “Interested parties” means, with respect to any structured 8 settlement, the payee, any beneficiary irrevocably designated under the 9 annuity contract to receive payments following the payee’s death, the 10 annuity issuer, the structured settlement obligor, and any other party 11 that has continuing rights or obligations under such structured 12 settlement. 13 (7) “Net advance amount” means the gross advance amount less the 14 aggregate amount of the actual and estimated transfer expenses required 15 to be disclosed under section 3(5) of this act. 16 (8) “Payee” means an individual who is receiving tax-free payments 17 under a structured settlement and proposes to make a transfer of 18 payment rights thereunder. 19 (9) “Periodic payments” means (a) recurring payments and (b) 20 scheduled future lump sum payments. 21 (10) “Qualified assignment agreement” means an agreement providing 22 for a qualified assignment within the meaning of section 130 of the 23 United States Internal Revenue Code (26 U.S.C. Sec. 130), as amended. 24 (11) “Responsible administrative authority” means, with respect to 25 a structured settlement, any government authority vested by law with 26 exclusive jurisdiction over the settled claim resolved by such 27 structured settlement. 28 (12) “Settled claim” means the original tort claim or workers’ 29 compensation claim resolved by a structured settlement. 30 (13) “Structured settlement” means an arrangement for periodic 31 payment of compensation for injuries or sickness as described in 26 32 U.S.C. Sec. 104(a)(1) or (2), as amended, or an arrangement for 33 periodic payment of benefits under a special needs trust as described 34 in 42 U.S.C. Sec. 1396p(d)(4), as amended. 35 (14) “Structured settlement agreement” means the agreement, 36 judgment, stipulation, or release embodying the terms of a structured 37 settlement. 38 EHB 1347.SL p. 2 (15) “Structured settlement obligor” means, with respect to any 1 structured settlement, the party that has the continuing obligation to 2 make periodic payments to the payee under a structured settlement 3 agreement or a qualified assignment agreement. 4 (16) “Structured settlement payment rights” means rights to receive 5 periodic payments under a structured settlement, whether from the 6 structured settlement obligor or the annuity issuer, if: 7 (a) The payee is domiciled in, or the domicile or principal place 8 of business of the structured settlement obligor or the annuity issuer 9 is located in, this state; 10 (b) The structured settlement agreement was approved by a court or 11 responsible administrative authority in this state; or 12 (c) The structured settlement agreement is expressly governed by 13 the laws of this state. 14 (17) “Terms of the structured settlement” means, with respect to 15 any structured settlement, the terms of the structured settlement 16 agreement, the annuity contract, any qualified assignment agreement and 17 any order or other approval of any court or responsible administrative 18 authority or other government authority that authorized or approved 19such structured settlement. 20 (18) “Transfer” means any sale, assignment, pledge, hypothecation 21 or other alienation or encumbrance of structured settlement payment 22 rights made by a payee for consideration. However, “transfer” does not 23 mean the creation or perfection of a security interest in structured 24 settlement payment rights under a blanket security agreement entered 25 into with an insured depository institution, in the absence of any 26 action to redirect the structured settlement payments to such insured 27 depository institution, or an agent or successor in interest thereof, 28 or otherwise to enforce such blanket security interest against the 29 structured settlement payment rights. 30 (19) “Transfer agreement” means the agreement providing for a 31 transfer of structured settlement payment rights. 32 (20) “Transfer expenses” means all expenses of a transfer that are 33 required under the transfer agreement to be paid by the payee or 34 deducted from the gross advance amount, including, without limitation, 35 court filing fees, attorneys’ fees, escrow fees, lien recordation fees, 36 judgment and lien search fees, finders’ fees, commissions, and other 37 payments to a broker or other intermediary. “Transfer expenses” does 38 p. 3 EHB 1347.SL not mean preexisting obligations of the payee payable for the payee’s 1 account from the proceeds of a transfer. 2 (21) “Transferee” means a party acquiring or proposing to acquire 3 structured settlement payment rights through a transfer. 4 NEW SECTION. Sec. 3. Not less than three days prior to the date 5 on which a payee signs a transfer agreement, the transferee shall 6 provide to the payee a separate disclosure statement, in bold type no 7 smaller than 14 points, setting forth: 8 (1) The amounts and due dates of the structured settlement payments 9 to be transferred; 10 (2) The aggregate amount of such payments; 11 (3) The discounted present value of the payments to be transferred, 12 which shall be identified as the “calculation of current value of the 13 transferred structured settlement payments under federal standards for 14 valuing annuities”, and the amount of the applicable federal rate used 15 in calculating such discounted present value; 16 (4) The gross advance amount; 17 (5) An itemized listing of all applicable transfer expenses, other 18 than attorneys’ fees and related disbursements payable in connection 19 with the transferee’s application for approval of the transfer, and the 20 transferee’s best estimate of the amount of any such fees and 21 disbursements; 22 (6) The net advance amount; 23 (7) The amount of any penalties or liquidated damages payable by 24 the payee in the event of any breach of the transfer agreement by the 25 payee; and 26 (8) A statement that the payee has the right to cancel the transfer 27 agreement, without penalty or further obligation, not later than the 28 third business day after the date the agreement is signed by the payee. 29 NEW SECTION. Sec. 4. A direct or indirect transfer of structured 30 settlement payment rights is not effective and a structured settlement 31 obligor or annuity issuer is not required to make any payment directly 32 or indirectly to any transferee of structured settlement payment rights 33 unless the transfer has been approved in advance in a final court order 34 or order of a responsible administrative authority based on express 35 findings by such court or responsible administrative authority that: 36 EHB 1347.SL p. 4 (1) The transfer is in the best interest of the payee, taking into 1 account the welfare and support of the payee’s dependents; 2 (2) The payee has been advised in writing by the transferee to seek 3 independent professional advice regarding the transfer and has either 4 received such advice or knowingly waived such advice in writing; and 5 (3) The transfer does not contravene any applicable statute or the 6 order of any court or other government authority. 7 NEW SECTION. Sec. 5. Following a transfer of structured 8 settlement payment rights under this chapter: 9 (1) The structured settlement obligor and the annuity issuer shall, 10 as to all parties except the transferee, be discharged and released 11 from any and all liability for the transferred payments; 12 (2) The transferee shall be liable to the structured settlement 13 obligor and the annuity issuer: 14 (a) If the transfer contravenes the terms of the structured 15 settlement, for any taxes incurred by such parties as a consequence of 16 the transfer; and 17 (b) For any other liabilities or costs, including reasonable costs 18 and attorneys’ fees, arising from compliance by such parties with the 19 order of the court or responsible administrative authority or arising 20 as a consequence of the transferee’s failure to comply with this 21 chapter; 22 (3) Neither the annuity issuer nor the structured settlement 23 obligor may be required to divide any periodic payment between the 24 payee and any transferee or assignee or between two, or more, 25 transferees or assignees; and 26 (4) Any further transfer of structured settlement payment rights by 27 the payee may be made only after compliance with all of the 28 requirements of this chapter. 29 NEW SECTION. Sec. 6. (1) An application under this chapter for 30 approval of a transfer of structured settlement payment rights shall be 31 made by the transferee and may be brought in the county in which the 32 payee resides, in the county in which the structured settlement obligor 33 or the annuity issuer maintains its principal place of business, or in 34 any court or before any responsible administrative authority which 35 approved the structured settlement agreement. 36 p. 5 EHB 1347.SL (2) Not less than twenty days prior to the scheduled hearing on any 1 application for approval of a transfer of structured settlement payment 2 rights under section 4 of this act, the transferee shall file with the 3 court or responsible administrative authority and serve on all 4 interested parties a notice of the proposed transfer and the 5 application for its authorization, including with such notice: 6 (a) A copy of the transferee’s application; 7 (b) A copy of the transfer agreement; 8 (c) A copy of the disclosure statement required under section 3 of 9 this act; 10 (d) A listing of each of the payee’s dependents, together with each 11 dependent’s age; 12 (e) Notification that any interested party is entitled to support, 13 oppose, or otherwise respond to the transferee’s application, either in 14 person or by counsel, by submitting written comments to the court or 15 responsible administrative authority or by participating in the 16 hearing; and 17 (f) Notification of the time and place of the hearing and 18 notification of the manner in which and the time by which written 19 responses to the application must be filed, which may not be less than 20 fifteen days after service of the transferee’s notice, in order to be 21 considered by the court or responsible administrative authority. 22 NEW SECTION. Sec. 7. (1) The provisions of this chapter may not 23 be waived by any payee. 24 (2) Any transfer agreement entered into on or after the effective 25 date of this act by a payee who resides in this state shall provide 26 that disputes under such transfer agreement, including any claim that 27 the payee has breached the agreement, shall be determined in and under 28 the laws of this state. Such a transfer agreement may not authorize 29 the transferee or any other party to confess judgment or consent to 30 entry of judgment against the payee. 31 (3) Transfer of structured settlement payment rights do not extend 32 to any payments that are life contingent unless, prior to the date on 33 which the payee signs the transfer agreement, the transferee has 34 established and has agreed to maintain procedures reasonably 35 satisfactory to the annuity issuer and the structured settlement 36 obligor for (a) periodically confirming the payee’s survival, and (b) 37 EHB 1347.SL p. 6 giving the annuity issuer and the structured settlement obligor prompt 1 written notice in the event of the payee’s death. 2 (4) No payee who proposes to make a transfer of structured 3 settlement payment rights may incur any penalty, forfeit any 4 application fee or other payment, or otherwise incur any liability to 5 the proposed transferee or any assignee based on any failure of such a 6 transfer to satisfy the conditions of this chapter. 7 (5) This chapter does not authorize any transfer of structured 8 settlement payment rights in contravention of any law, nor does it 9 imply that any transfer under a transfer agreement entered into prior 10 to the effective date of this act is valid or invalid. 11 (6) Compliance with the requirements set forth in section 3 of this 12 act and fulfillment of the conditions set forth in section 4 of this 13 act is the sole responsibility of the transferee in any transfer of 14 structured settlement payment rights, and neither the structured 15 settlement obligor nor the annuity issuer bear any responsibility for, 16 or any liability arising from, noncompliance with the requirements or 17 failure to fulfill the conditions. 18 NEW SECTION. Sec. 8. Sections 1 through 7 of this act constitute 19 a new chapter in Title 19 RCW. 20 *This opportunity is not currently offered to persons residing in North Carolina.

West Virginia

The West Virginia Structured Settlement Protection Statute ARTICLE 6H. TRANSFERS OF RIGHT TO RECEIVE FUTURE PAYMENTS. §46A-6H-1. Definitions. For the purposes of this article: (1) “Closing date” means the date the transfer agreement is executed by the consumer and the transferee, and shall be at least fourteen days after the requisite disclosures have been provided to the consumer and interested parties. (2) “Consumer” means any person entitled to receive periodic future payments from an annuity issuer, settlement obligor or any other party as the result of an annuity, settlement, lottery winnings, sweepstakes payoff or other future payment arrangement. (3) “Discounted present value” means the fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. (4) “Favorable tax determination” means, with respect to a proposed transfer of structured settlement payment rights, any of the following authorities that are applicable to the parties to such transfer and on the parties to the structured settlement agreement and any qualified assignment agreement and establish that the federal income tax treatment of the structured settlement for the parties to the structured settlement agreement and any qualified assignment agreement, other than the consumer, will not be adversely affected by such transfer: (i) A United States Treasury regulation; (ii) A published ruling by the United States Internal Revenue Service; (iii) A private letter ruling by the United States Internal Revenue Service with respect to such transfer; or (iv) Other applicable legal authority that is binding on the United States Internal Revenue Service. (5) “Interested party” means an insurance company, an annuity issuer, a structured settlement obligor, a lottery, a beneficiary irrevocably designated in an agreement to receive future payments following the consumer’s death or other entity obligated to pay to a consumer any future payments or any other party that has continuing rights or obligations under the structured settlement agreement. (6) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. (7) “Structured settlement” means an arrangement whereby a settlement obligor, an annuity issuer or other person agrees to make future payments to a consumer in resolution of a personal injury or other claim. (8) “Structured settlement payment rights” means the right to receive periodic payments, including lump sum payments, under a structured settlement from a settlement obligor, annuity issuer, or other person. (9) “Transfer” means any sale, assignment or other conveyance of future payment rights by a consumer to a transferee for consideration. (10) “Transfer agreement” means an agreement providing for the transfer of future payment rights from a consumer to a transferee. (11) “Transferee” means any person or entity that becomes entitled to receive a consumer’s future payments as a result of a transfer agreement and includes companies in the business of purchasing future payments. §46A-6H-2. Disclosure requirements prior to transfer. (a) In order for any transfer by a consumer to a transferee to be effective, the transferee shall provide the following disclosures in writing, in bold, twelve point type, to the consumer at least fourteen days prior to the earlier of the closing date or the hearing on the transfer when court approval is required by the provisions of this article: (1) The amount of each future payment to be transferred by the consumer and the date such payments were due to the consumer; (2) The aggregate amount of the future payments to be transferred by the consumer; (3) The discounted present value of the future payments to be transferred by the consumer and the discount rate used in the calculation, as determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity as issued by the United States Internal Revenue Service; (4) The discount rate used in subdivision (3) of this section stated in terms of an annual percentage rate; (5) the lump sum payable to the consumer in exchange for transferring the future payments; (6) A good faith estimate of all commissions, fees, rebates, service charges, application fees, processing fees, closing costs, filing fees, administrative charges and other commissions, fees, costs, expenses and charges to be paid by the consumer or deducted from the lump sum in connection with the transfer; (7) The net amount payable to the consumer after the deduction of all commissions, fees, costs, expenses and charges described in subdivision (6) of this section; and (8) A statement that there may be adverse tax consequences affecting the consumer as a result of the transfer and that the consumer is advised to seek the advice of an attorney or accountant. (b) The transferee shall also provide written notice to all interested parties at least fourteen days prior to the earlier of the closing date of the transfer or the hearing when court approval is required including: (1) The closing date of the transfer, or the date, time and place of the hearing; (2) A copy of the disclosure statement required by subsection (a) of this section; and (3) The name, address and taxpayer identification number of the transferee. (c) If the transfer requires court approval pursuant to section three of this article, then the transferee shall also provide the disclosure statement required by subsection (a) of this section to the court and the guardian ad litem, if one is named by the court. §46A-6H-3. Requirement of court approval for certain structured settlement transfers. (a) In addition to the requirements of this article, the transfer agreement shall be approved by the circuit court of the county wherein the consumer resides or where the structured settlement agreement was executed when: (1) The structured settlement payment rights belong to an infant or an incompetent person; or (2) The structured settlement payment rights arise from a personal injury or other claim and: (i) The aggregate of the structured settlement payment rights exceeds forty thousand dollars; or (ii) The structured settlement agreement contains a provision restricting the right of the consumer to assign or transfer the consumer’s future payment rights. (b) The transferee shall commence the action by filing a petition with the court seeking approval of the transfer, and providing to the court the disclosure statement required by subsection (a), section two of this article. (c) The circuit court shall set a time and date for a hearing on the matter within twenty-one days of the date of the filing of the petition. The transferee shall notify the consumer and all interested parties of the date and time of the hearing and provide them with a copy of the petition. (d) The court shall appoint a guardian ad litem in cases where the structured settlement payment rights belong to an infant, an incompetent person or a ward of the court. The guardian ad litem shall review the requisite disclosures and make an independent inquiry to determine whether the proposed transfer is fair, reasonable and in the best interests of the consumer. Such information shall be reported to the court during the hearing on the matter. (e) An interested party has the right to appear and contest the proposed transfer at the time of the hearing. If, after proper notice, the interested party does not make an appearance, then the interested party shall be bound by the court’s ruling. (f) After a hearing or upon its own motion, the court may approve the transfer if the court finds that: (1) The consumer has demonstrated that: (A) He or she, or his or her family, is facing a financial hardship and that the transfer would not subject the consumer or the consumer’s family to undue financial hardship in the future; or (B) the transfer is in the best interest of the consumer: Provided, That the judge shall disclose the possible adverse tax consequence to the consumer; (2) The transferee is in compliance with the provisions of section two of this article; and (3) The transfer agreement does not contravene the terms of the structured settlement agreement, including any restrictions on the right of the consumer to transfer his or her structured settlement payment rights, unless the annuity issuer and structured settlement obligor have consented to the transfer. However, the approval of the annuity issuer and the structured settlement obligor shall not be required if, at the time the consumer and the transferee entered into the transfer agreement, a favorable tax determination was in effect. (g) The court shall award the guardian ad litem reasonable fees for representing the consumer. Such fees shall be paid by the transferee. (h) A consumer may request court approval for a transfer that does not mandate court approval under this section. Such voluntary petition by the consumer shall then become subject to the provisions of this section. The transferee shall be responsible for filing the action pursuant to subsection (b) of this section, and the consumer shall be responsible for attorney’s fees or guardian ad litem fees. §46A-6H-4. Prohibiting transfer agreements of workers’ compensation claims and other transfer agreements that contravene law. Any agreement to transfer future payments arising under a workers’ compensation claim is prohibited as is any other agreement to transfer future payments that would contravene existing law. §46A-6H-5. Right of recision. (a) Any consumer who enters into a transfer agreement shall have an absolute, nonwaiveable right of recision for five business days following the closing date of the transfer. During the five-day recision period, the consumer may rescind the transfer agreement by phone, mail or facsimile, effective upon receipt, without penalty or further obligation to the transferee, except that any amounts advanced by the transferee to the consumer in contemplation of the transfer shall be immediately refunded to the transferee. (b) When a transfer requires court approval, the consumer may rescind without penalty until the court order is entered appointing a guardian ad litem. When the consumer dismisses the action after the appointment of a guardian ad litem or rescinds the transfer agreement within five business days of court approval of the transfer, the consumer shall be responsible for the filing fee and any guardian ad litem fees. (c) Notice of the right of recision shall be provided to the consumer in writing by the transferee prior to the time of closing. §46A-6H-6. Remedies; effective date; nonwaiver. (a) This article shall apply to transfer agreements of future payment rights executed after the effective date of this article. Nothing in this article shall be construed to impair, limit, affect or otherwise apply to any transfer agreement executed prior to the effective date of this article. (b) A violation of a provision of this article by the transferee is an unfair or deceptive act or practice in the conduct of commerce pursuant to the provisions of article six, section one hundred four of this chapter. The remedy provided for in this section is in addition to other remedies provided for by law. (c) The provisions of this article may not be waived. §46A-6H-7. Protection from liability to consumer. When an interested party makes payments to the transferee pursuant to a court order of approval or a transfer agreement executed in accordance with the provisions of this article, the interested party and the transferee are not liable to the consumer or other interested party for the transfer of the consumer’s future payments. §46A-6H-8. Registration with the secretary of state. (a) A transferee or other person in the business of soliciting or purchasing future payments shall file a registration statement with the secretary of state before advertising or arranging transfers of consumer’s future payment rights in this state. The registration statement shall contain: (1) The name and address of the transferee; (2) The name and address of the transferee’s agent for service of process within the state, or if the company does not have one within the state, a statement that the secretary of state will serve as the agent for service of process; and (3) A full and complete disclosure of any prior or pending litigation involving alleged violations of this article’s provisions or consumer complaints filed with the attorney general’s office of this state that allege violations of this article’s provisions, or a notarized statement that there has been no such litigation or unresolved complaint relating to the operations of the transferee. (b) The transferee shall update the statement within thirty days after a change of information occurs. (c) Each transferee registering pursuant to the provisions of this section shall maintain a copy of the registration statement. The transferee shall allow a consumer, interested party or court to inspect the registration statement on request. (d) The secretary of state may charge each transferee that files a registration statement with the secretary of state a reasonable fee not to exceed one hundred dollars to cover the cost of filing. *This opportunity is not currently offered to persons residing in North Carolina.

Wyoming

The Wyoming Structured Settlement Protection Statute W.S.1977 § 1-16-605 § 1-16-605. Effects of transfer of structured settlement payment rights (a) Following a transfer of structured settlement payment rights under this act: (i) The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments; (ii) The transferee shall be liable to the structured settlement obligor and the annuity issuer: (A) If the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer; and (B) For any other liabilities or costs, including reasonable costs and attorneys’ fees arising from compliance by such parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this act. (iii) Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two (2) or more transferees or assignees; and (iv) Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all requirements of this act. § 1-16-606. Procedure for approval of transfers (a) An application under this act for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought in the Wyoming district court that approved the structured settlement payment rights, or the Wyoming district court in the county where the payee resides without regard to where the structured settlement payment rights may have accrued. (b) Not less than twenty (20) days prior to the scheduled hearing on an application for approval of a transfer of structured settlement payment rights under W.S. 1-16-604, the transferee shall file with the court and serve all interested parties a notice of the proposed transfer and application for its authorization, including with the notice: (i) A copy of the transferee’s application for transfer; (ii) A copy of the transfer agreement; (iii) A copy of the disclosure statement required under W.S. 1-16-603; (iv) A listing of each of the payee’s dependents, together with each dependent’s age and date of birth; (v) Notification that any interested party may support, oppose or otherwise respond to the transferee’s application, either in person or by counsel, by submitting written comments to the court or by participating in the hearing; and (vi) Notification of the time and place of the hearing and notification of the manner in which and the time by which written responses to the application shall be filed, which time shall be not less than fifteen (15) days after service of the transferee’s notice, in order to be considered by the court. § 1-16-607. General provisions; construction (a) The provisions of this act may not be waived by any payee. (b) Any transfer agreement entered into on or after July 1, 2006 by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. No transfer agreement shall authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee. (c) No transfer of structured settlement payment rights shall extend to any payments that are life-contingent unless, prior to the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for: (i) Periodically confirming the payee’s survival; and (ii) Giving the annuity issuer and the structured settlement obligor prompt written notice in the event of the payee’s death. (d) No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of the transfer to satisfy the requirements of this act. (e) Nothing contained in this act shall be construed to authorize any transfer of structured settlement payment rights in contravention of any law or to imply that any transfer under a transfer agreement entered into prior to July 1, 2006 is valid or invalid. (f) Compliance with the requirements of W.S. 1-16-603 and fulfillment of the conditions set forth in W.S. 1-16-604 shall be solely the responsibility of the transferee in any transfer of structured settlement payment rights, and neither the structured settlement obligor nor the annuity issuer shall bear any responsibility for, or any liability arising from, noncompliance with the requirements of W.S. 1-16-603 or failure to fulfill the conditions set forth in W.S. 1-16-604. W. S. 1977 § 1-16-607, WY ST § 1-16-607 Current through the 2007 General Session of the Wyoming Legislature. © 2007 Thomson/West *This opportunity is not currently offered to persons residing in North Carolina.