Sec. 52-225g. Transfer of structured settlement payment rights: Definitions.
Sec. 52-225g. Transfer of structured settlement payment rights: Definitions.
For the purposes of sections 52-225g to 52-225l inclusive:
(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 is legally 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 any
reductions for transfer expenses or other deductions to be made from such consideration;
(5) "Independent professional advice" means 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 such 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
subdivision (5) of section 52-225h;
(8) "Payee" means an individual who is receiving tax-free payments under a structured settlement and proposes to transfer 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 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;
(11) "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;
(12) "Settled claim" means the original tort claim or workers' compensation claim
resolved by a structured settlement;
(13) "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;
(14) "Structured settlement agreement" means the agreement, judgment, stipulation
or release embodying the terms of a structured settlement;
(15) "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;
(16) "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:
(A) 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 state;
(B) The structured settlement agreement was approved by a court or responsible
administrative authority in this state; or
(C) The structured settlement agreement is expressly governed by the laws of
this state;
(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
such structured settlement;
(18) "Transfer" means any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration, but 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 payment rights;
(19) "Transfer agreement" means the agreement providing for a transfer of structured settlement payment rights;
(20) "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, but not limited to, court filing fees, attorney's fees, escrow fees, lien
recordation fees, judgment and lien search fees, finders' fees, commissions and other
payments to a broker or other intermediary, but does not include preexisting obligations
of the payee payable for the payee's account from the proceeds of a transfer; and
(21) "Transferee" means a party acquiring or proposing to acquire structured settlement payment rights through a transfer.
(P.A. 03-110, S. 1.)
See Sec. 52-225l re transfer agreements to which applicable.