Colonial pays cash for structured settlements!

Georgia statues regarding Structured Settlements.

This state statute overseeing the sale of structured settlement payments and the buying of annuities is not the Model Act but should comply with Federal Law if a declaratory judgment is obtained (Colonial's interpretation)

CODE OF GEORGIA
TITLE 51. TORTS
CHAPTER 12. DAMAGES
ARTICLE 4. DAMAGES IN TORT ACTIONS

Copyright 2002 by The State of Georgia. All rights reserved.

Statutes current through 2002 Regular Session of the General Assembly


51-12-70 Definitions.

As used in this article, the term:

(1) "Administrator" means the administrator of the "Fair Business Practices Act of 1975" appointed pursuant
to subsection (a) of Code Section 10-1-395 or his or her designee.

(2) "Annuity issuer" means an insurer that has issued an insurance contract used to fund periodic payments
under a structured settlement.

(3) "Applicable law" means:

     (A) The federal laws of the United States;

     (B) The laws of this state, including principles of equity applied in the courts of this state; and

     (C) 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.

(4) "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.

(5) "Interested parties" means, with respect to any structured settlement agreement, 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.

(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 thereunder.

(7) "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.

(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, 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 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; 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" 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.

(14) "Transfer" means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made
by a payee for consideration, but does not include:

(A) Any transaction which is expressly provided for in the structured settlement agreement and is executed within
30 days after execution of the structured settlement agreement; or

(B) Any testamentary disposition by the payee.

(15) "Transfer agreement" means the agreement providing for the transfer of structured settlement payment rights
from a payee to a transferee.


51-12-71 Prerequisites for transfer 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:

(1) The transfer complies with the requirements of this article and will not contravene other applicable law;

(2) 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;

(3) Written notice at least two business days prior to the effective execution of the transfer agreement has been
provided by the transferee to the annuity issuer and the structured settlement obligor by certified mail or statutory
overnight delivery, postage prepaid; 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.

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