Colonial pays cash for structured settlements!
regarding Structured Settlements.
This state statute
overseeing the sale of structured settlement
payments and the buying of annuities is
basically the Model Act and complies with
ARIZONA REVISED STATUTES ANNOTATED
TITLE 12. COURTS AND CIVIL PROCEEDINGS
Current through End of the Forty-Fifth
Second Regular and Fifth Special
ARTICLE 1. GENERAL PROVISIONS
§ 12-2901. Definitions
In this chapter, unless the context otherwise
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
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
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
or other deductions to be made from the consideration.
5. "Independent professional advice" means
the advice of an attorney, certified public
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
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
9. "Periodic payments" includes both recurring payments
and scheduled future lump sum
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'
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
(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
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
21. "Transferee" means a party acquiring or proposing
to acquire structured settlement payment rights through
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