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. By providing the Model" disclosure
and additional findings it could comply
with Federal Law (Colonial's
WEST'S ANNOTATED CODE OF MARYLAND
COURTS AND JUDICIAL PROCEEDINGS
TITLE 5. LIMITATIONS, PROHIBITED ACTIONS, AND
SUBTITLE 11--STRUCTURED SETTLEMENTS
Current through 2001 session
§ 5-1101. Definitions
(a) In this subtitle the following words have the
(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
(c) "Independent professional advice" means
advice of an attorney, certified
public accountant, actuary, or other licensed professional
(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
(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
(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
(i) "Structured settlement obligor" means
a party who has the continuing
periodic payment obligation to the payee under a structured
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,
(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;
(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
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
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