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 not exactly the
Model Act but complies with Federal Law
with the addition of front end disclosure.
WEST'S FLORIDA STATUTES ANNOTATED
TITLE XXXVII. INSURANCE
CHAPTER 626. INSURANCE FIELD REPRESENTATIVES AND
PART XI STRUCTURED SETTLEMENTS
Current through End of 2001 1st Reg. Sess.
626.99296. Transfers of structured settlement payment
(1) Purpose.--The purpose of this section is to protect
recipients of structured settlements who are
involved in the process of transferring structured settlement
(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
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
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
(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. [FN1]
(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
assigned structured settlement payments and imposed
directly or indirectly by the transferee and that are
incident to a transfer of structured settlement payment
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,
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
(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.C.S. 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
(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.
Continue to Part 2 >>