Colonial pays cash for structured settlements!

South Carolina 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 (Colonial's interpretation) SOUTH CAROLINA ADVANCE LEGISLATIVE SERVICE STATENET SOUTH CAROLINA 114TH SESSION OF THE SOUTH CAROLINA GENERAL ASSEMBLY HOUSE BILL NO. 3943 RATIFICATION NO. 300

<< Return to State Index  |  Continue to Part 2 >>

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 by adding:

"CHAPTER 50

Structured Settlement

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 settlement.

(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 Service.

(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 Section 15-50-30(5).

(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 agreement.

(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 payment rights.

(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 a transfer.