Colonial pays cash for structured settlements!
statues regarding Structured Settlements.
This state statute overseeing the
sale of structured settlement payments and
the buying of annuities is not exactly the
Model Act because of additional disclosures.
But it complies with Federal Law
MASSACHUSETTS GENERAL LAWS
PART III. COURTS, JUDICIAL OFFICERS AND PROCEEDINGS
IN CIVIL CASES
TITLE II. ACTIONS AND PROCEEDINGS THEREIN
CHAPTER 231C. STRUCTURED SETTLEMENT CONTRACTS
Current through Ch. 138 of the 2002 Second Annual
of the General Court., approved 6/13/2002.
§ 1. Definitions
For the purposes of this chapter the following words
shall have the following meanings unless the context
"Annuity issuer", an insurer that has issued
an annuity contract to be used to fund periodic payments
under a structured settlement.
"Applicable law", any of the following,
as applicable in interpreting the terms of a structured
(1) the laws of the United States;
(2) the laws of the commonwealth, including principles
of equity applied in the courts of the commonwealth;
(3) the laws of any other jurisdiction; (i) that
is the domicile of the payee or any other interested
party; (ii) under whose law 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
"Applicable federal rate", the most recently
published applicable rate for determining the present
value of an annuity, as issued by the United States
Internal Revenue Service pursuant to section 7520 of
the United States Internal Revenue Code.
"Assignee", a party that acquires structured
settlement payment rights directly or indirectly from
a transferee of such rights.
"Dependents", a payee's spouse and minor
children and all other family members and other persons
from whom the payee is legally obligated to provide
support, including spousal maintenance.
"Discount/finance charge", the sum of all
charges payable directly or indirectly from assigned
structured settlement payments and imposed directly
or indirectly by the transferee as an incident to a
transfer of structured settlement payment rights, including:
(1) interest charges, discounts and other compensation
for the time value of money;
(2) all application, origination, processing, underwriting,
closing, filing and notary fees and all similar charges,
however denominated; and
(3) all charges for commissions or brokerage, irrespective
of the identity of the party to whom such charges
are paid or payable.
The term discount/finance charge shall not include
any fee or other obligation incurred by a payee in obtaining
independent professional advice concerning a transfer
of structured settlement payment rights.
"Discounted present value", with respect
to a proposed transfer of structured settlement payment
rights, the fair present value of future payments, as
determined by discounting the payments to the present
using the most recently published applicable federal
rate as the discount rate.
"Independent professional advice", advice
of an attorney, certified public accountant, actuary,
or other licensed professional advisor:
(1) who is engaged by a payee to render advice concerning
the legal, tax and financial implications of a transfer
of structured settlement payment rights;
(2) who is not in any manner affiliated with or
compensated by the transferee of the transfer; and
(3) whose compensation for providing the advice
is not affected by whether or not a transfer occurs.
"Interested party", with respect to any
structured settlement, the following:
(1) the payee;
(2) a beneficiary irrevocably designated under the
annuity contract to receive payments following the
payee's death or, if such designated beneficiary is
a minor, the designated beneficiary's parent or guardian;
(3) the annuity issuer;
(4) the structured settlement obligor; and
(5) any other party that has continuing rights or
obligations under the structured settlement.
"Payee", an individual who is receiving
tax free damage payments under a structured settlement
and proposes to make a transfer of payment rights under
the structured settlement.
"Qualified assignment agreement", an agreement
providing for a qualified assignment as provided by
the United States Internal Revenue Code, Title 26, section
"Responsible administrative authority",
with respect to a structured settlement, a government
authority vested by law with exclusive jurisdiction
over the settled claim resolved by the structured settlement.
"Settled claim", the original tort claim
or workers' compensation claim resolved by a structured
"Structured settlement", an arrangement
for periodic payment of damages for personal injuries
or sickness established by settlement or judgment in
resolution of a tort claim or for periodic payments
in settlement of a workers' compensation claim.
"Structured settlement agreement", the agreement,
judgment, stipulation, or release embodying the terms
of a structured settlement, including the rights of
the payee to receive periodic payments.
"Structured settlement obligor", the party
that has the obligation to make continuing periodic
payments to the payee under a structured settlement
agreement or a qualified assignment agreement.
"Structured settlement payment rights",
rights to receive periodic payments, including lump
sum payment under a structured settlement, whether from
the settlement obligor or the annuity issuer, where:
(1) the payee or any other interested party is domiciled
in the state;
(2) the structured settlement agreement was approved
by a court or responsible administrative authority
in the commonwealth; or
(3) the settled claim was pending before a court
of the commonwealth when the parties entered into
the structured settlement agreement.
"Terms of the structured settlement", the
terms of the structured settlement agreement, the annuity
contract, a qualified assignment agreement and an order
or approval of a court, responsible administrative authority
or other government authority authorizing or approving
the structured settlement.
"Transfer", a sale, assignment, pledge,
hypothecation, or other form of alienation or encumbrance
made by a payee for consideration.
"Transfer agreement", the agreement providing
for transfer of structured settlement payment rights
from a payee to a transferee.
"Transferee", a person who is receiving
or will receive structured settlement payment rights
resulting from a transfer.
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