Colonial pays cash for structured settlements!

Iowa statues 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 Federal Law (Colonial's interpretation) IOWA CODE ANNOTATED TITLE XV. JUDICIAL BRANCH AND JUDICIAL PROCEDURES SUBTITLE 5. SPECIAL ACTIONS CHAPTER 682. STRUCTURED SETTLEMENT PROTECTION Current through End of 2002 2nd Ex. Sess.

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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 receiveperiodic 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.

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