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 should comply with
It requires consent of the insurer.
MICHIGAN COMPILED LAWS ANNOTATED
CHAPTER 691. JUDICIARY
STRUCTURED SETTLEMENT PROTECTION ACT
P.A.2002, No. 260
of the 2002 Regular Session, 91st Legislature
691.1191. Short title
Sec. 1. This act shall be known and may be cited as
the "structured settlement protection act".
Sec. 2. As used in this act:
(a) "Annuity issuer" means an insurer that
has issued an annuity contract used to fund periodic
payments under a structured settlement.
(b) "Applicable law" means 1 or more of
(i) The federal laws of the United States.
(ii) The laws of this state, including principles
of equity applied in the courts of this state.
(iii) The laws of any other jurisdiction to which
1 or more of the following apply:
(A) The jurisdiction is the domicile of the payee.
(B) A settled claim was pending in a court in
the jurisdiction when a structured settlement was
(c) "Contractual assignment restriction"
means a term prohibiting or restricting transfer of
a structured settlement payments right in a contract
or agreement including, but not limited to, an annuity
contract, a structured settlement agreement, a qualified
assignment agreement, or a court order or administrative
order approving a structured settlement.
(d) "Dependent" includes a payee's spouse,
minor child, or other person for whom the payee is legally
obligated to provide alimony or other support.
(e) "Discounted present value" means, with
respect to a proposed transfer of structured settlement
payment rights, the fair value of future payments, as
determined by discounting the payments to the present
using the most recently published applicable federal
rate for determining the present value of an annuity
issued by the United States internal revenue service.
(f) "Independent professional advice" means
advice of an attorney, certified public accountant,
or other professional who meets all of the following
concerning a transfer of a structured settlement payment
(i) He or she is qualified to advise payees and
their dependents on the legal, tax, and financial
implications of the structured settlement payment
(ii) He or she is not affiliated in any manner with
the transferee of the structured settlement payment
(iii) His or her compensation for rendering the
advice does not depend, directly or indirectly, on
whether the transfer of the structured settlement
payment right occurs.
(g) "Payee" means an individual who is receiving
tax-free damages payments under a structured settlement
and proposes to make a transfer of his or her payment
rights under the structured settlement.
(h) "Protected party" means, with respect
to a structured settlement, the payee, a dependent of
the payee, a beneficiary designated to receive payments
following the payee's death, an annuity issuer, a structured
settlement obligor, and any other party entitled to
invoke the benefit of a contractual assignment restriction
applicable to the structured settlement, whether as
a party to or third party beneficiary of the annuity
contract, the structured settlement agreement, the qualified
assignment agreement, or the court order, administrative
order, or other document in which the contractual assignment
(i) "Qualified assignment agreement" means
an agreement providing for a qualified assignment within
the meaning of section 130 of the internal revenue code
(j) "Settled claim" means the original tort
claim resolved by a structured settlement.
(k) "Structured settlement" means an arrangement
for periodic payment of damages for personal injuries
established by settlement or judgment in resolution
of a tort claim. Structured settlement does not include
an arrangement for periodic payments in settlement of
a worker's compensation claim.
(l) "Structured settlement agreement" means
the agreement, judgment, stipulation, or release establishing
the right of the payee to receive periodic payments
and other terms of a structured settlement.
(m) "Structured settlement obligor" means,
with respect to any structured settlement, the party
that has the continuing periodic payment obligation
to the payee under a structured settlement agreement
or a qualified assignment agreement.
(n) "Structured settlement payment right"
means a right to receive periodic payments including,
but not limited to, lump sum payments under a structured
settlement from the settlement obligor or the annuity
issuer, where 1 or more of the following apply:
(i) The payee or a protected party is a resident of
(ii) The settled claim was pending before a court
of this state when the structured settlement was reached.
(o) "Transfer" means a sale, transfer, assignment,
pledge, hypothecation, or other form of disposition,
alienation, or encumbrance made for consideration.
(p) "Transfer agreement" means an agreement
providing for transfer of a structured settlement payment
right from a payee.
Continue to Part 2 >>