Colonial pays cash for structured settlements!
statues 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 Federal Law
SOUTH CAROLINA ADVANCE LEGISLATIVE
SOUTH CAROLINA 114TH SESSION
OF THE SOUTH CAROLINA GENERAL ASSEMBLY
HOUSE BILL NO. 3943
RATIFICATION NO. 300
SYNOPSIS: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH
CAROLINA, 1976, BY ADDING CHAPTER 50 TO TITLE 15 SO
AS TO ENACT THE "STRUCTURED SETTLEMENT PROTECTION
ACT", WHICH PROVIDES PROCEDURES TO REGULATE THE
TRANSFER OF STRUCTURED SETTLEMENTS, INCLUDING PROVISIONS
REQUIRING COURT OR ADMINISTRATIVE AUTHORITY APPROVAL
IN ADVANCE FOR THE TRANSFER OF STRUCTURED SETTLEMENT
PAYMENT RIGHTS, AND ESTABLISHING DISCLOSURE REQUIREMENTS.
Be it enacted by the General Assembly of the State
of South Carolina:
Structured Settlement Protection Act
[*1] SECTION 1. Title 15 of the 1976 Code is amended
Section 15-50-10. This act may be cited as the 'Structured
Settlement Protection Act'.
Section 15-50-20. As used in this chapter:
(1) 'Annuity issuer' means an insurer that has issued
a contract to fund periodic payments under a structured
(2) 'Dependents' include a payee's spouse and minor
children and all other persons for whom the payee legally
is obligated to provide support, including alimony.
(3) 'Discounted present value' means the present value
of future payments 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
(4) '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 a reduction for transfer expenses or other deduction
is made from the consideration.
(5) 'Independent professional advice' means advice of
an attorney, certified public accountant, actuary, or
other licensed professional advisor.
(6) 'Interested parties' means, with respect to a structured
settlement, the payee, a beneficiary irrevocably designated
under the annuity contract to receive payments following
the payee's death, the annuity issuer, the structured
settlement obligor, and another party that has continuing
rights or obligations under the structured settlement.
(7) 'Net advance amount' means the gross advance amount
less the aggregate amount of the actual and estimated
transfer expenses that must be disclosed pursuant to
(8) 'Payee' means an individual who is receiving tax-free
payments under a structured settlement and who proposes
to make a transfer of payment rights under the settlement.
(9) 'Periodic payments' includes recurring payments
and scheduled future lump-sum payments.
(10) 'Qualified assignment agreement' means an agreement
providing for a qualified assignment within the meaning
of Section 130 of the United States Internal Revenue
Code, United States Code Title 26.
(11) 'Settled claim' means the original tort claim resolved
by a structured settlement.
(12) '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.
(13) 'Structured settlement agreement' means the agreement,
judgment, stipulation, or release embodying the terms
of a structured settlement.
(14) 'Structured settlement obligor' means, with respect
to a 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
(15) 'Structured settlement payment rights' means rights
to receive periodic payments under a structured settlement,
whether from the structured settlement obligor or the
annuity issuer, if the:
(a) 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 State; or
(b) structured settlement agreement was approved by
a court in this State; or
(c) structured settlement agreement is governed expressly
by the laws of this State.
(16) 'Terms of the structured settlement' include
the terms of the structured settlement agreement, the
annuity contract, a qualified assignment agreement,
and an order or other approval of a court.
(17) 'Transfer' means the sale, assignment, pledge,
hypothecation, or other alienation or encumbrance of
structured settlement payment rights made by a payee
for consideration; except 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 an action
to redirect the structured settlement payments to the
insured depository institution, or an agent or successor
in interest of it, or otherwise to enforce the blanket
security interest against the structured settlement
(18) 'Transfer agreement' means the agreement providing
for a transfer of structured settlement payment rights.
(19) '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,
attorneys' 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.
(22) 'Transferee' means a party acquiring or proposing
to acquire structured settlement payment rights through
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