40-461. Structured settlement protection act; definitions.
40-461
40-461. Structured settlement protection act;definitions.For purposes of this act: (a) "Annuity issuer" means aninsurer that hasissued a contractto fund periodic payments under a structured settlement.
(b) "Dependents" include a payee's spouse and minor children and all otherpersons for whom thepayee is legally obligated to provide support, including alimony.
(c) "Discounted present value" means the present value of future paymentsdetermined bydiscounting such payments to the present using the most recently publishedapplicable federal ratefor determining the present value of an annuity, as issued by the United Statesinternal revenueservice.
(d) "Gross advance amount" means the sum payable to the payee or for thepayee's account asconsideration for a transfer of structured settlement payment rights before anyreductions for transferexpenses or other deductions to be made from such consideration.
(e) "Independent professional advice" means advice of an attorney, certifiedpublic accountant,actuary or other licensed professional adviser.
(f) "Interested parties" means, with respect to any structured settlement,the payee, any beneficiaryirrevocably designated under the annuity contract to receive payments followingthe payee's death,the annuity issuer, the structured settlement obligor and any other party thathas continuing rightsor obligations under such structured settlement.
(g) "Net advance amount" means the gross advance amount less the aggregateamount of the actualand estimated transfer expenses required to be disclosed under subsection (e)ofK.S.A. 2009 Supp.40-462 and amendments thereto.
(h) "Payee" means an individual who receives tax free payments under astructured settlement andproposes to make a transfer of payment rights thereunder.
(i) "Periodic payments" include both recurring payments and scheduledfuture lump sum payments.
(j) "Qualified assignment agreement" means an agreement providing for aqualified assignmentwithin the meaning of section 130 of the United States internal revenue code.
(k) "Responsible administrative authority" means, with respect to astructured settlement, anygovernment authority vested by law with exclusive jurisdiction over the settledclaim resolved bysuch structured settlement.
(l) "Settled claim" means the original tort claimresolved by astructured settlement.
(m) "Structured settlement" means an arrangement for periodic payment ofdamages for personalinjuries or sickness established by settlement or judgment in resolution of atort claim.
(n) "Structured settlement agreement" means the agreement, judgment,stipulation or releaseembodying the terms of a structured settlement.
(o) "Structured settlement obligor" means, with respect to any structuredsettlement, the party thathas the continuing obligation to make periodic payments to the payee under astructured settlementagreement or a qualified assignment agreement.
(p) "Structured settlement payment rights" means rights to receive periodicpayments under astructured settlement, whether from the structured settlement obligor or theannuity issuer, where:
(1) The payee is domiciled in this state or the domicile or principalplace of business of the structured settlement obligor or the annuity issuer islocated in this state;
(2) the structured settlement agreement was approved by a court orresponsible administrativeauthority in this state; or
(3) the structured settlement agreement is expressly governed by the laws ofthis state.
(q) "Terms of the structured settlement" include the terms of the structuredsettlement agreement,the annuity contract, any qualified assignment agreement and any order or otherapproval of anycourt or responsible administrative authority or other government authoritythat authorized orapproved such structured settlement.
(r) "Transfer" means any sale, assignment, pledge, hypothecation or otheralienation orencumbrance of structured settlement payment rights made by a payee forconsideration. Transferdoes not include the creation or perfection of a security interest instructured settlement paymentrights under a blanket security agreement entered into with an insureddepository institution, in theabsence of any action to redirect the structured settlement payments to suchinsured depositoryinstitution, or an agent or successor in interest thereof, or otherwise toenforce such blanket securityinterest against the structured settlement payment rights.
(s) "Transfer agreement" means the agreement providing for a transfer ofstructured settlementpayment rights.
(t) "Transfer expenses" means all expenses of a transfer that are requiredunder the transferagreement to be paid by the payee or deducted from the gross advance amount,including, withoutlimitation, court filing fees, attorneys fees, escrow fees, lien recordationfees, judgment and liensearch fees, finders' fees, commissions and other payments to a broker orother intermediary.Transfer expenses do not include any preexisting obligations of the payeepayable for the payee'saccount from the proceeds of a transfer.
(u) "Transferee" means a party acquiring or proposing to acquire structuredsettlement paymentrights through a transfer.
History: L. 2005, ch. 57, § 1; July 1.