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 complies with
Federal Law with additional disclosures
MINNESOTA STATUTES ANNOTATED
JUDICIAL PROCEDURE, DISTRICT COURT
CHAPTER 549. COSTS, DISBURSEMENTS
End of 2001 1st Sp. Sess.
Subdivision 1. Application. For purposes of sections
549.30 to 549.34, the terms defined in this section
have the meanings given them.
Subd. 2. Annuity issuer. "Annuity issuer"
means an insurer that has issued an annuity contract
to be used to fund periodic payments under a structured
Subd. 3. Applicable law. "Applicable law"
means: (1) the laws of the United States; (2) the laws
of this state, including principles of equity applied
in the courts of this state; and (3) the laws of any
other jurisdiction: (i) which is the domicile of the
payee or any other interested party; (ii) under whose
laws 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 settlement
Subd. 4. Dependents. "Dependents" means
a payee's spouse and minor children and all other family
members and other persons for whom the payee is legally
obligated to provide support, including spousal maintenance.
Subd. 5. Discounted present value. "Discounted
present value" means, 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 for
determining the present value of an annuity, as issued
by the United States Internal Revenue Service.
Subd. 6. Independent professional advice. "Independent
professional advice" means advice of an attorney,
certified public accountant, actuary, or other 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 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
a transfer occurs or does not occur.
Subd. 7. Interested parties. "Interested parties"
means the payee, a beneficiary designated under the
annuity contract to receive payments following the payee's
death or, if the designated beneficiary is a minor,
the designated beneficiary's parent or guardian, the
annuity issuer, the structured settlement obligor, and
any other party that has continuing rights or obligations
under the structured settlement.
Subd. 8. Payee. "Payee" means 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.
Subd. 9. Qualified assignment agreement. "Qualified
assignment agreement" means an agreement providing
for a qualified assignment as provided by the United
States Internal Revenue Code, title 26, section 130,
as amended through December 31, 1998. [FN1]
Subd. 10. Responsible administrative authority. "Responsible
administrative authority" means a government authority
vested by law with exclusive jurisdiction over the settled
claim resolved by the structured settlement.
Subd. 11. Settled claim. "Settled claim"
means the original tort claim or workers' compensation
claim resolved by a structured settlement.
Subd. 12. Structured settlement. "Structured
settlement" means an arrangement for periodic payment
of damages for personal injuries established by settlement
or judgment in resolution of a tort claim or for periodic
payments in settlement of a workers' compensation claim.
Subd. 13. Structured settlement agreement. "Structured
settlement agreement" means the agreement, judgment,
stipulation, or release embodying the terms of a structured
settlement, including the rights of the payee to receive
Subd. 14. Structured settlement obligor. "Structured
settlement obligor" means the party that has the
continuing periodic payment obligation to the payee
under a structured settlement agreement or a qualified
Subd. 15. Structured settlement payment rights. "Structured
settlement payment rights" means rights to receive
periodic payments, including lump sum payments, 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 state; or (3) the settled claim was pending before
the courts of this state when the parties entered into
the structured settlement agreement.
Subd. 16. Terms of the structured settlement. "Terms
of the structured settlement" means 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.
Subd. 17. Transfer. "Transfer" means a sale,
assignment, pledge, hypothecation, or other form of
alienation or encumbrance made by a payee for consideration.
Subd. 18. Transfer agreement. "Transfer agreement"
means the agreement providing for transfer of structured
settlement payment rights from a payee to a transferee.
Subd. 19. Transferee. "Transferee" means
a person who is receiving or will receive structured
settlement payment rights resulting from a transfer.
Continue to Part 2 >>