Sec. 52-225f. Transfer of structured settlement payment rights prior to October 1, 2003.
Sec. 52-225f. Transfer of structured settlement payment rights prior to October 1, 2003. (a) For purposes of this section:
(1) "Annuity issuer" means an insurer that has issued any insurance contract used
to fund periodic payments under a structured settlement;
(2) "Expenses" means all broker's commissions, service charges, application or
processing fees, closing costs, filing or administrative charges, legal fees, notary fees
and other commissions, fees, costs and charges payable by the payee in connection with
the proposed transfer or deductible from the gross consideration that would be paid to
the payee in connection with the transfer;
(3) "Interested parties" means, with respect to any structured settlement, the payee,
any beneficiary designated 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 and the structured settlement obligor;
(4) "Payee" means an individual who is receiving payments under a structured settlement and proposes to make a transfer of payment rights thereunder;
(5) "Structured settlement" means an arrangement for periodic payment of damages
established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers' compensation claim;
(6) "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 under an agreement providing for a qualified assignment
within the meaning of Section 130 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time
amended;
(7) "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;
(8) "Transfer" means any sale, assignment, pledge, hypothecation or other form of
alienation or encumbrance made for consideration;
(9) "Transfer agreement" means the agreement providing for transfer of structured
settlement payment rights from a payee to a transferee; and
(10) "Transferee" means any person receiving structured settlement payment rights
resulting from a transfer.
(b) No transfer of structured settlement payment rights, either directly or indirectly,
shall be effective by any payee domiciled in this state or by any payee entitled to receive
payments under a structured settlement funded by an insurance contract issued by an
insurer domiciled in this state or owned by an insurer or corporation domiciled in this
state and no structured settlement obligor or annuity issuer shall be required to make
any payment directly or indirectly to any transferee of any such transfer unless (1) not
less than ten days prior to the date on which the payee entered into the transfer agreement,
the transferee provided to the payee a written disclosure statement setting forth (A) the
amounts and due dates of the structured settlement payments to be transferred; (B) the
aggregate amount of the payments; (C) the gross amount of all expenses; (D) the amount
payable to the payee, net of all expenses, in exchange for the payments; (E) the discounted present value of all structured settlement payments to be transferred and the
discount rate used in determining such discounted present value; and (F) a statement
that the payee may be subject to adverse federal and state income tax consequences as
a result of the proposed transfer; and (2) such transfer has been approved by a court
pursuant to subsection (c) of this section.
(c) (1) Prior to any transfer, the payee entitled to receive payments under such
structured settlement shall commence a declaratory judgment action under section 52-29 for a determination as to whether the transfer of such structured settlement payment
rights is in the best interests of the payee and is fair and reasonable to all interested
parties under all of the circumstances then existing. The annuity issuer and the structured
settlement obligor shall be made parties to such action. If the court determines, after
hearing, that such transfer should be allowed, it shall approve such transfer upon such
terms and conditions as it deems appropriate.
(2) The court in which the original action was or could have been filed or the court
which has jurisdiction where the applicant resides shall have jurisdiction over any such
action.
(3) The payee shall cause notice of the action to be served on all interested parties
by a proper officer or other person lawfully empowered to make service. The notice of
the action shall include (A) a copy of the payee's application to the court for approval
of the transfer, (B) a copy of the disclosure statement required under subsection (b) of
this section and (C) notice of the hearing.
(4) The payee may seek an order setting the deadline for the filing of written objections. The payee shall give notice to all interested parties of the deadline for filing
objections whether such deadline has been established by court order or by operation
of the general statutes or court rule. Notice shall be mailed to all interested parties at
least ten days before such deadline.
(5) The court shall hold a hearing on the application. The payee shall give notice
of the hearing to all interested parties.
(d) Nothing contained in this section shall imply that any transfer under a transfer
agreement dated prior to October 1, 1998, is binding upon any interested party or that
any annuity issuer or structured settlement obligor is under any obligation to make
transferred payments to the transferee of any such prior transfer.
(e) The provisions of this section may not be waived.
(f) The provisions of this section shall be applicable to transfer agreements executed
on and after October 1, 1998, and prior to October 1, 2003.
(P.A. 98-238, S. 1, 2; P.A. 03-110, S. 7.)
History: P.A. 98-238 effective October 1, 1998, and applicable to transfer agreements executed on or after said date;
P.A. 03-110 added Subsec. (f) making provisions applicable to transfer agreements executed on and after October 1, 1998,
and prior to October 1, 2003.
Section does not abrogate the common law right to include an antiassignment provision in a structured settlement
agreement or annuity issued pursuant to such agreement. 254 C. 259.