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
basically the Model Act and complies with
2002 Regular Session
By: Senator(s) Turner
Senate Bill 2912
(As Sent to Governor)
AN ACT TO CREATE THE STRUCTURED SETTLEMENT PROTECTION
ACT; TO DEFINE CERTAIN TERMS; TO REQUIRE THE DISCLOSURE
OF CERTAIN INFORMATION TO A PAYEE; TO PROVIDE FOR THE
APPROVAL OF TRANSFERS OF STRUCTURED SETTLEMENT PAYMENT
RIGHTS; TO PROVIDE FOR THE EFFECTS OF THE TRANSFER OF
STRUCTURED SETTLEMENT PAYMENT RIGHTS; TO PROVIDE THE
PROCEDURE FOR APPROVAL OF TRANSFERS; AND FOR RELATED
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be
cited as the "Structured Settlement Protection
SECTION 2. The following words and phrases shall
have the meanings ascribed herein, unless the context
clearly indicates otherwise:
(a) "Annuity issuer" means an insurer that
has issued a contract to fund periodic payments under
a structured settlement.
(b) "Dependents" include a payee's spouse
and minor children and all other persons for whom the
payee is legally obligated to provide support, including
(c) "Discounted present value" means the
present value of future payments determined by discounting
such 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.
(d) "Gross advance amount" means the sum
payable to the payee or for the payee's account as consideration
for a transfer of structured settlement payment rights
before any reductions for transfer expenses or other
deductions to be made from such consideration.
(e) "Independent professional advice" means
advice of an attorney, certified public accountant,
actuary or other licensed professional adviser.
(f) "Interested parties" means, with respect
to any structured settlement, the payee, any beneficiary
irrevocably 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
such structured settlement.
(g) "Net advance amount" means the gross
advance amount less the aggregate amount of the actual
and estimated transfer expenses required to be disclosed
under Section 3(e) of this act.
(h) "Payee" means an individual who is receiving
tax-free payments under a structured settlement and
proposes to make a transfer of payment rights thereunder.
(i) "Periodic payments" includes both recurring
payments and scheduled future lump-sum payments.
(j) "Qualified assignment agreement" means
an agreement providing for a qualified assignment within
the meaning of 26 USCS 130.
(k) "Responsible administrative authority"
means, with respect to a structured settlement, any
government authority vested by law with exclusive jurisdiction
over the settled claim resolved by such structured settlement.
(l) "Settled claim" means the original tort
claim or workers' compensation claim resolved by a structured
(m) "Structured settlement" means 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.
(n) "Structured settlement agreement" means
the agreement, judgment, stipulation or release embodying
the terms of a structured settlement.
(o) "Structured settlement obligor" means,
with respect to any structured settlement, the party
that has the continuing obligation to make periodic
payments to the payee under a structured settlement
agreement or a qualified assignment agreement.
(p) "Structured settlement payment rights"
means rights to receive periodic payments under a structured
settlement, whether from the structured settlement obligor
or the annuity issuer, where:
(i) The payee is domiciled in, or the domicile or
principal place of business of the structured settlement
obligor or the annuity issuer is located in, this
(ii) The structured settlement agreement was approved
by a court or responsible administrative authority
in this state; or
(iii) The structured settlement agreement is expressly
governed by the laws of this state.
(q) "Terms of the structured settlement"
includes, with respect to any structured settlement,
the terms of the structured settlement agreement, the
annuity contract, any qualified assignment agreement
and any order or other approval of any court or responsible
administrative authority or other government authority
that authorized or approved such structured settlement.
(r) "Transfer" means any sale, assignment,
pledge, hypothecation or other alienation or encumbrance
of structured settlement payment rights made by a payee
for consideration; provided that the term "transfer"
does not include the creation or perfection of a security
interest in structured settlement payment rights under
a blanket security agreement entered into with an insured
depository institution, in the absence of any action
to redirect the structured settlement payments to such
insured depository institution, or an agent or successor
in interest thereof, or otherwise to enforce such blanket
security interest against the structured settlement
(s) "Transfer agreement" means the agreement
providing for a transfer of structured settlement payment
(t) "Transfer expenses" means all expenses
of a transfer that are required under the transfer agreement
to be paid by the payee or deducted from the gross advance
amount, including, without limitation, court filing
fees, attorney's fees, escrow fees, lien recordation
fees, judgment and lien search fees, finder's fees,
commissions, and other payments to a broker or other
intermediary; "transfer expenses" do not include
preexisting obligations of the payee payable for the
payee's account from the proceeds of a transfer.
(u) "Transferee" means a party acquiring
or proposing to acquire structured settlement payment
rights through a transfer.
Continue to Part 2 >>