Colonial pays cash for structured settlements!

Indiana 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 is workable with some minor problems. Complies with Federal Law (Colonial's interpretation)

WEST'S ANNOTATED INDIANA CODE
TITLE 34. CIVIL PROCEDURE
ARTICLE 13. CAUSES OF ACTION: CLAIMS AGAINST THE GOVERNMENT
CHAPTER 3. TORT CLAIMS AGAINST GOVERNMENTAL ENTITIES AND PUBLIC EMPLOYEES


Current through End of 2001 1st Regular Sess.

34-13-3-23 Structured settlement; discharge; limits

Sec. 23. (a) With the consent of the claimant, a political subdivision may compromise or settle a claim or suit by
means of a structured settlement under this section.

(b) A political subdivision may discharge settlement of a claim or suit brought under this chapter by:

(1) an agreement requiring periodic payments by the political subdivision over a specified number of years;

(2) the purchase of an annuity;

(3) by making a "qualified assignment" of the liability of the political subdivision as defined by the provisions of
26 U.S.C. 130(c);

(4) payment in a lump sum; or

(5) any combination of subdivisions (1) through (4).

(c) The present value of a structured settlement shall not exceed the statutory limits set forth in section 4 of this
chapter; however, the periodic or annuity payments may exceed these statutory limits. The present value of any
periodic payments may be determined by discounting the periodic payments by the same percentage as that
found in Moody's Corporate Bond Yield Average Monthly Average Corporates, as published by Moody's
Investors Service, Incorporated.


34-30-2-116.8 Transfers of structured settlement payment rights

Sec. 116.8. IC 34-50-2-10 .(Concerning transfers of structured settlement payment rights).


34-50-2-1 "Interested party" defined

Sec. 1. As used in this chapter, "interested party" refers to:

(1) the payee;

(2) the annuity issuer;

(3) the structured settlement agreement obligor;

(4) the payee's counsel who assisted in the establishment of the structured settlement;

(5) a dependent of the payee; or

(6) a family member or relative who is acting as a caregiver for the payee.


34-50-2-2 "Structured settlement" defined

Sec. 2. As used in this chapter, "structured settlement" means periodic payments of damages established by a
settlement or a court judgment in resolution of a tort claim for personal injury.


34-50-2-3 "Transfer" defined Sec. 3. As used in this chapter, "transfer" means a:

(1) sale;

(2) assignment;

(3) pledge;

(4) hypothecation; or

(5) any other form of alienation or encumbrance;

of structured settlement payment rights made by a payee for consideration.


34-50-2-4 "Transferee" defined

Sec. 4. As used in this chapter, "transferee" means a party acquiring or proposing to acquire structured
settlement payment rights through a transfer agreement.


34-50-2-5 Court approval of transfers required

Sec. 5. A direct or indirect transfer of structured settlement payment rights is not effective, and a structured
settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee,
unless an Indiana court of competent jurisdiction has approved the transfer in a final order in accordance
with sections 7 and 8 of this chapter.


34-50-2-6 Disclosure statements

Sec. 6. Not less than ten (10) days before the date on which a payee becomes obligated under a transfer
agreement, the transferee shall provide to the payee and other interested parties a disclosure statement, in
boldface type of not less than fourteen (14) points in size, that includes the following:

(1) The amounts and due dates of the structured settlement payments to be transferred under the transfer
agreement.

(2) The aggregate amount of the payments disclosed under subdivision (1).

(3) An estimate of the present fair market value of the future periodic payments under the structured
settlement agreement.

(4) The gross amount payable to the payee as consideration for the transfer of the structured settlement
payments disclosed under subdivision (1).

(5) An itemized list of all:
     (A) commissions;
     (B) fees;
     (C) costs;
     (D) expenses; and
     (E) charges;
  payable by the payee or deductible from the gross amount payable to the payee, as disclosed under
subdivision (4).

(6) The net amount payable to the payee after any deduction is made from the gross amount payable to the
payee, as described in subdivision (5).

(7) The quotient, expressed as a percentage, obtained by dividing the net amount payable to the payee, as
disclosed under subdivision (6), by the estimate of the present fair market value of the future periodic
payments, as disclosed under subdivision (3).

(8) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties,
payable by the payee in the event of a breach of the transfer agreement by the payee.

 

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