Colonial pays cash for structured settlements!

Florida statues 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.
(Colonial's interpretation)

WEST'S FLORIDA STATUTES ANNOTATED
TITLE XXXVII. INSURANCE
CHAPTER 626. INSURANCE FIELD REPRESENTATIVES AND OPERATIONS

PART XI STRUCTURED SETTLEMENTS

Current through End of 2001 1st Reg. Sess.


626.99296. 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. [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 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.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 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.

Continue to Part 2 >>