1. Must be an Annuity

CPLR §5042 Form of Security "Security authorized or required for payment of a judgment for periodic installments entered in accordance with this article must be in the form of an annuity contract, executed by a qualified insurer and approved by the superintendent of financial services pursuant to section five thousand forty-nine of this article, and approved by the court".

2. Certain types of payments for future damages cease upon the death of the judgment creditor

CPLR §5045 (a) Unless otherwise agreed between the parties at the time security is posted pursuant to section five thousand forty-three of this article, in all cases covered by this article in which future damages are payable in periodic installments, the liability for payment of any installments for medical, dental or other costs of health care or non-economic loss not yet due at the death of the judgment creditor terminates upon the death of the judgment creditor.

A temporary life annuity or "temp life annuity" is ideally suited for funding structured judgment obligations under CPLR §5045(a) as well as pricing CPLR 50B projections for the cost of funding elements of damages subject to CPLR §5045(a).

3.  Other types of damages do not cease at the death of the judgment creditor

However, in CPLR §5045(b),   the portion of any periodic payment allocable to loss of future earnings shall not be reduced or terminated by reason of the death of the judgment creditor but shall be paid to persons to whom the judgment creditor owed a duty of support immediately prior to his death to the extent that such duty of support exists under applicable law at the time of the death of the judgment creditor. Such payments to such persons shall continue for the remainder of the period as originally found by the jury or until such duty of support ceases to exist, whichever occurs first.   In such cases, the court which rendered the original judgment may, upon petition of any party in interest, modify the judgment to award and apportion the future payments of such unpaid future damages in accordance with this subdivision which apportioned amounts shall be payable in the future as provided for in this article. In the event that the judgment creditor does not owe a duty of support to any person at the time of the death of the judgment creditor or such duty ceases to exist, the remaining payments shall be considered part of the estate of the judgment creditor. In such cases, the court which rendered the original judgment may, upon petition of any party in interest, convert those portions of such periodic payments allocable to the loss of future earnings to a lump sum by calculating the present value of such payments in order to assist in the settlement of the estate of the judgment creditor.

Can New York Structured Judgment be funded with Period Certain annuity?

A period certain structured settlement annuity is ideally suited for funding structured judgment obligations under CPLR 5045(b) as well as pricing CPLR 50B projections for the cost of funding elements of damages subject to CPLR 5045(b).

Last updated March 16, 2025

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