Lump Sum Cash

State Timetables

Structured Settlement - This product is insurance annuity based

A structured settlement is an arraignment to satisfy a legal liability. It provides periodic payments to a person holding a legal liability against another over a negotiated period of time (e.g. as an injured claimant would against the person at fault for the injury). Settlements are used increasingly in the settlement of personal injury, wrongful death and product liability claims, instead of lump sum settlements. As an alternative to the continuing receive these long term payments, some of these individuals (referred to as claimants) assign or transfer part or all of their of their settlement payments to a structured settlement purchasing company for a discounted lump sum payment.

The seller/customer was the plaintiff (claimant) who settled a claim either in court or out of court with the defendant and their insurer. In most cases, in order avoid protracted litigation and for consideration of releasing the defendant and their insurer from future litigation, the parties involved enter into a Release and Settlement Agreement, where the defendants insurer agrees to provide future payment(s) to the claimant. To ensure the future payment(s) is/are made, the defendants insurer through qualified assignment (an amendment to the IRC §130(b)(1) and §104(a)(2), where the defendants insurer is released from further obligation by providing a lump sum payment to a third party insurer and transferring their obligation to that insurer. Through qualified assignment the deferred payment stream to be provided to the claimant is tax exempt.) is released from their obligation and a third party insurer (obligor) assumes the obligation. The obligor purchases an annuity contract from an insurance company to provide and guarantee the payment to the claimant.

The guarantee of this product is through first, the life insurance company issuing the payments, second the obligor, the insurance company obligated to ensure the claimant receives their settlement payments and last the states guarantee fund.

Assignment of Structured Settlement payment rights (Non Assignable Redirection)

The claimant and funding company enter into a sale and assignment agreement and other related documents, where in consideration for a lump sum payment, the claimant agrees to assignment their rights to receive payment under the release and settlement agreement and the annuity contract to the funding company. The funding company secures their assignment of payment rights by filing UCC1 under article 9 of the Uniform Commercial Code. The funding company also has the claimant redirect annuity payment to an address or bank account controlled by the funding company.

Court Ordered Structured Settlement payment right transfers

The claimant and funding company enter into a transfer agreement and other related documents. Where in consideration for a lump sum payment, the claimant agrees to assign their payment rights under the release and settlement agreement and annuity contract to the funding company. In order to comply with certain state statutes, a courts approval is required to effectuate the transfer agreement. All interested parties are put on notice and are given the chance to oppose the transfer. An Order is entered and a notice of transfer is sent to both the insurer and the obligor. The transfer of payment rights is secured by an Order of the court and by the filing of UCC1 under article 9 of the Uniform Commercial Code.

Non-Court Order Structured Settlement Payment Right Transfers

The claimant and funding company enter into a transfer agreement and other related documents. Where in consideration for a lump sum payment, the claimant agrees to assign their payment rights under the release and settlement agreement and annuity contract to the funding company. By complying with certain state statutes the insurance issuer and obligor agree to assign/transfer payment rights to the funding company. The transferred payments are secured by the insurers acknowledgement of the assignment/transfer and by the filing of UCC1 under article 9 of the Uniform Commercial Code.

Catastrophe Fund Settlements

The seller/customer was the plaintiff (claimant) who settled a claim in court with the state and their insurer. For consideration of releasing the state and their insurer from future litigation, the parties involved enter into a Release and Settlement Agreement, where the state’s insurer agrees to provide a future payment to the claimant. The payment is from an insurance company to provide and guarantee the payment to the claimant.

The guarantee of this product is through first the life insurance company issuing the payments, second the obligor, the insurance company obligated to ensure the claimant receives their settlement payments and last the states guarantee fund.