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 the Model
Act but is workable with some minor problems.
Complies with Federal Law (Colonial's
WEST'S ANNOTATED INDIANA CODE
TITLE 34. CIVIL PROCEDURE
ARTICLE 13. CAUSES OF ACTION: CLAIMS AGAINST THE
CHAPTER 3. TORT CLAIMS AGAINST GOVERNMENTAL ENTITIES
AND PUBLIC EMPLOYEES
Current through End of 2001 1st
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
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
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
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
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"
(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:
(4) hypothecation; or
(5) any other form of alienation or encumbrance;
of structured settlement payment rights made by a payee
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,
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
(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
(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:
(D) expenses; and
payable by the payee or deductible from
the gross amount payable to the payee, as disclosed
(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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