Colonial pays cash for structured settlements!

Maryland statues regarding Structured Settlements.

This state statute overseeing the sale of structured settlement payments and the buying of annuities is not the Model Act. By providing the Model" disclosure and additional findings it could comply with Federal Law (Colonial's interpretation)



Current through 2001 session

§ 5-1101. Definitions

(a) In this subtitle the following words have the meanings indicated.

(b) "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 value of
an annuity, as issued by the United States Internal Revenue Service.

(c) "Independent professional advice" means advice of an attorney, certified
public accountant, actuary, or other licensed professional adviser:

(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 affiliated with or compensated by the transferee of the
transfer; and

(3) Whose compensation is not affected by whether a transfer occurs.

(d) "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 has
continuing rights or obligations under a structured settlement.

(e) "Payee" means an individual who receives damage payments that are not
subject to income taxation under a structured settlement and proposes to make a
transfer of payment rights.

(f) "Responsible administrative authority" means a government authority vested
with exclusive jurisdiction over the settled claim resolved by a structured

(g)(1) "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.

(2) "Structured settlement" does not include an arrangement for periodic
payment of damages for personal injury established by a judgment by

(h) "Structured settlement agreement" means an agreement, judgment,
stipulation, or release embodying the terms of a structured settlement.

(i) "Structured settlement obligor" means a party who has the continuing
periodic payment obligation to the payee under a structured settlement
agreement or a qualified assignment agreement.

(j) "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:

(1) An interested party is domiciled in this State;

(2) The structured settlement agreement was approved by a court or
responsible administrative authority in this State; or

(3) The settled claim was pending before a court of this State when the
parties entered into the structured settlement agreement.

(k) "Terms of the structured settlement" includes the terms of the structured
settlement agreement, the annuity contract, a qualified assignment, and an
order or approval of a court or responsible administrative authority
authorizing or approving a structured settlement.

(l) "Transfer" means a sale, assignment, pledge, hypothecation, or other form
of alienation or encumbrance made by a payee for consideration.

(m) "Transfer agreement" means the agreement providing for the transfer of
structured settlement payment rights from a payee to a transferee.

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