12-2901
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12-2901. Definitions In this chapter, unless the context otherwise requires: 1. "Annuity issuer" means an insurer that has issued a contract that is used to fund periodic payments under a structured settlement. 2. "Dependents" includes 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 alimony. 3. "Discounted present value" means the 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. 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 any reductions for transfer expenses or other deductions to be made from the consideration. 5. "Independent professional advice" means the advice of an attorney, certified public accountant, actuary or other licensed professional adviser. 6. "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 the structured settlement. 7. "Net advance amount" means the gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under this chapter. 8. "Payee" means an individual who receives tax-free damage payments under a structured settlement and who proposes to make a transfer of payment rights under the structured settlement. 9. "Periodic payments" includes both recurring payments and scheduled future lump sum payments. 10. "Qualified assignment agreement" means an agreement that provides for a qualified assignment within the meaning of section 130 of the internal revenue code as defined by section 42-1001. 11. "Responsible administrative authority" means, with respect to a structured settlement, any government authority that is vested by law with exclusive jurisdiction over the settled claim that is resolved by the structured settlement. 12. "Settled claim" means the original tort claim or workers' compensation claim that is resolved by a structured settlement. 13. "Structured settlement" means an arrangement for periodic payment of damages for personal injuries or sickness that is established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers' compensation claim. 14. "Structured settlement agreement" means the agreement, judgment, stipulation or release that embodies the terms of a structured settlement. 15. "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. 16. "Structured settlement payment rights" means the right to receive periodic payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if any of the following apply: (a) The payee, the structured settlement obligor, the annuity issuer or any other interested party is domiciled in this state. (b) The structured settlement agreement was approved by a court or responsible administrative authority in this state. (c) The laws of this state expressly govern the structured settlement agreement. 17. "Terms of the structured settlement" include, 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 the structured settlement. 18. "Transfer" means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance of structured settlement payment rights. 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 the blanket security interest against the structured settlement payment rights. 19. "Transfer agreement" means the agreement that provides for transfer of structured settlement payment rights from a payee to a transferee. 20. "Transfer expenses" means all expenses of a transfer required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders' fees, commissions and other payments to a broker or other intermediary. Transfer expenses does not include preexisting obligations of the payee payable for the payee's account from the proceeds of a transfer. 21. "Transferee" means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. |