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 exactly the
Model Act but disclosure and a court order
should comply with Federal Law
WEST'S LOUISIANA STATUTES ANNOTATED
LOUISIANA REVISED STATUTES
TITLE 9. CIVIL CODE ANCILLARIES
CODE BOOK III--OF THE DIFFERENT MODES OF ACQUIRING
THE OWNERSHIP OF THINGS
CODE TITLE IV--CONVENTIONAL OBLIGATIONS OR CONTRACTS
CHAPTER 1-B. REQUISITES FOR A VALID AGREEMENT
Current through all 2001 Regular
and Second Extraordinary Session Acts
§ 2715. Transfer of structured settlement rights
A. As used in this Section, the following terms shall
(1) "Annuity issuer" means an insurer that has issued
an annuity contract to be used to fund periodic payments
under a structured settlement.
(2) "Discounted present value" means the fair present
value of future payments, as determined by discounting
payments to the present using the most recently published
applicable federal rate for determining the present
of an annuity, as issued by the United States Internal
(3) "Independent professional advice" means advice
of an attorney, certified public accountant, actuary,
licensed professional adviser:
(a) Who is engaged by a payee to render advice concerning
the legal, tax, and financial implications of a transfer
structured settlement payment rights;
(b) Who is not affiliated with or compensated by the
transferee of the transfer; and
(c) Whose compensation is not affected by whether a
(4) "Interested parties" means the payee, each 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
continuing rights or obligations under a structured
(5) "Payee" means an individual who receives damage
payments that are not subject to income taxation under
structured settlement and proposes to make a transfer
of payment rights.
(6) "Structured settlement" means an arrangement for
periodic payment of damages for personal injury
established by a settlement or judgment in resolution
of a tort claim. "Structured settlement" does not include
arrangement for periodic payment of damages for personal
injury established by a judgment of confession.
(7) "Structured settlement agreement" means an agreement,
judgment, stipulation, or release embodying the
terms of a structured settlement.
(8) "Structured settlement obligor" means a party who
has the continuing periodic payment obligation to the
payee under a structured settlement agreement or a qualified
(9) "Structured settlement payment rights" means the
rights to receive periodic payments, including lump-sum
payments under a structured settlement, whether from
the settlement obligor or the annuity issuer, if:
(a) The transferee or payee is domiciled in this state;
(b) The structured settlement agreement was approved
by a court in this state; or
(c) The settled claim was pending before a court of
this state when the parties entered into the structured
(10) "Terms of the structured settlement" includes
the terms of the structured settlement agreement, the
contract, a qualified assignment, and an order or approval
of a court or responsible administrative authority
authorizing or approving a structured settlement.
(11) "Transfer" means a sale, assignment, pledge,
hypothecation, or other form of alienation or encumbrance
by a payee for consideration.
(12) "Transfer agreement" means the agreement providing
for the transfer of structured settlement payment rights
from a payee to a transferee.
(13) "Transferee" means a person who is receiving or
will receive structured settlement payment rights from
B. The direct or indirect transfer of structured settlement
payment rights shall not be effective nor shall a
structured settlement obligor or annuity issuer be required
to make a payment directly or indirectly to a transferee
of structured settlement payment rights unless all of
the following requirements are met:
(1) The transfer of structured settlement payment rights
has been authorized in advance by ex parte order of
court of competent jurisdiction which had jurisdiction
over the original tort or workers' compensation claim
by the structured settlement or in which the original
tort or workers' compensation claim could have been
At least twenty days prior to the issuance of the order
the transferee shall file a petition for transfer with
"Ex Parte Petition for Transfer of Structured Settlement
Rights by (name of Transferee)."
(2) The transferee shall include with the petition,
a copy of the transferee's application, a copy of the
agreement, and a disclosure statement to the payee in
bold type, no smaller than 14 points, acknowledged by
payee specifying the following:
(a) The amounts and due dates of the structured settlement
payments to be transferred.
(b) The aggregate amount of the payments.
(c) The discounted present value of the payments, together
with the discount rate used in determining the
discounted present value.
(d) The gross amount payable to the payee in exchange
for the payments and an itemized listing of all brokers'
commissions, service charges, application fees, processing
fees, closing costs, filing fees, referral fees,
administrative fees, legal fees, notary fees, and other
commissions, fees, costs, expenses, and charges payable
payee or deductible from the gross amount otherwise
payable to the payee.
(e) The net amount payable to the payee after deduction
of all commissions, fees, costs, expenses, and charges
described in Subparagraph (d) of this Paragraph.
(f) The quotient, expressed as a percentage, obtained
by dividing the net payment amount by the discounted
value of the payments, which shall be disclosed in the
following statement: "The net amount that you will receive
from us in exchange for your future structured settlement
payments represents ___% of the estimated current value
of the payments".
(g) The effective annual interest rate, which rate
shall be disclosed in the following statement: "Based
on the net
amount that you will receive from us and the amounts
and timing of the structured settlement payments that
are turning over to us, you will, in effect, be paying
interest to us at a rate of ___% per year".
(h) The amount of any penalty and the aggregate amount
of any liquidated damages, including penalties, payable
the payee in the event of a breach of the transfer agreement
by the payee.
(i) The transferee has given written notice of the
transferee's name, address, and taxpayer identification
the annuity issuer and the structured settlement obligor.
(j) The transfer agreement provides that if the payee
is domiciled in this state, any disputes between the
be governed, interpreted, construed, and enforced in
accordance with the laws of this state and that the
of the payee is the proper place of venue to bring any
cause of action arising out of a breach of the agreement.
C. The court shall enter an order approving the transfer
based on a finding of all of the following:
(1) That the payee received independent professional
advice regarding the legal, tax, and financial implications
(2) That the transferee disclosed to the payee the
discounted present value.
D. All costs of court for filing the petition for
transfer of structured settlement rights shall be paid
by the transferee.
E. If a transfer of structure settlement payment rights
has been authorized under this Section, neither the
issuer nor the structured settlement obligor shall have
any liability to the payee or to any other party for
payment made to the transferee in accordance with the
F. The provisions of this Section may not be waived.
G. This Section shall not be construed to authorize
a transfer of structured settlement payment rights in
contravention of applicable law or to give effect to
a transfer of structured settlement payment rights that
under applicable law.
H. A provision in a transfer agreement giving a transferee
power to confess judgment against a payee is
unenforceable to the extent that the amount of the judgment
would exceed the amount paid by the transferee to the
payee, less any payments received from the structured
settlement obligor or the payee.
I. This Section shall not be construed to authorize
any transfer of workers' compensation payment rights
contravention of applicable law or to give effect to
any transfer of workers' compensation or other payment
that is invalid under applicable law.