Structured Settlement Protection

Structured Settlement Protection Acts 
Almost every state has a structured settlement consumer protection law. The laws are commonly known as Structured Settlement Protection Acts (SSPAs).  Structured settlement payment rights can be transferred. These states have certain have certain protections in place for those selling structured settlement payment rights to a third party buyer of structured settlement payment rights.

Structured Settlement Transfer Laws generally require :

Full disclosure from structured settlement buyers: Structured settlement buyers must provide a disclosure that includes all of the terms of the transaction in a very clear and concise manner for the protection of the seller.

A “cooling off period:” The selling annuitant must be allowed a period of time during which he or she  can back out of the deal to sell structured settlement payments

Court approval/"Best interest": all sales or transfers of annuities or structured settlement payments must have the approval of a judge. This approval will depend largely upon the seller’s unique financial situation and whether or not it is determined that such a sale is in the seller’s best interests and the interest of any applicable dependents..

State Statute
Alaska 2003 Alaska Laws Ch. 21, enacting AS §§ 09.68.200-09.68.230
Arizona Ariz. Rev. Stat. Ann. §§ 12-2901 – 12-2904
Arkansas 2005 House Bill 2614, enacting Ark. Code §§ 2381-701-23-81- 707
California Cal. Ins. Code §§ 10134-10139.5
Colorado Colo. Rev. Stat. §§ 13-23-101 – 13-23-108
Connecticut Conn. Gen. Stat. § 52-225g – 52-225l
Delaware Del. Code Ann. Tit. 10, §§ 6601-6604
Florida Fla. Stat. Ann. § 626.99296
Georgia Ga. Code Ann. §§ 51-12-70-72, §§51-12-70-76-77
Idaho Idaho Code § 28-9-109
Illinois 215 Ill. Comp. Stat. §§ 153/1 – 153/35
Indiana Ind. Code Ann. §§ 34-50-2-1 – 34-50-2-11
Iowa Code Ann. §§ 682.1 – 682.7
Kansas 2005 House Bill No. 2160
Kentucky Ky. Rev. Stat. Ann. §§ 454.430 – 454.435
Louisiana La. Rev. Stat. Ann. § 9:2715
Maine Me. Rev. Stat. Ann. tit. 24A §§ 601.25, 2241-46
Maryland Md. Code Ann. Cts. & Jud. Proc. §§ 5-1101-5-1105
Massachusetts Mass. Gen. Laws Ann. Ch. 231C, § 1-5
Michigan Mich. Comp. Laws. Ann., §§ 691.1191 – 691.1197
Minnesota Minn. Stat. §§ 549.30 – 549.34
Mississippi Miss. Code Ann. §§ 11-57-1 – 11-57-15
Missouri Mo. Rev. Stat. §§ 407.1060 – 407.1068
Montana 2005 Senate Bill No. 122
Nebraska Neb. Rev. Stat. §§ 25-3101 – 25-3107
Nevada N.R.S. § 42.030
New Jersey N.J. Stat. Ann. §§ 2A: 16-63 – 16-69
New Mexico 2005 House Bill 495
New York N.Y. Gen. Oblig. Law §§ 5-1701-1709
North Carolina N.C. Gen. Stat. Art. 44B §§ 1-543.10 – 1-543.15 and Art. 33 § 1-394.1
Ohio Ohio Rev. Code. Ann. §§ 2323.58 – 2323.587
Oklahoma Okla. Stat. Ann. tit. 12 §§ 3238 – 3245
Oregon 2005 Senate Bill 645
Pennsylvania 40 Pa. Cons. Stat. Ann. §§ 4001-4009
Rhode Island R.I. Gen. Laws Ann. §§ 27-9.3-1 – 27-9.3-7
South Carolina S.C. Code Ann. §§ 15-50-10 – 15-50-70
South Dakota S.D. Codified Laws §§ 21-3B-1 – 21-3B-12
Tennessee Tenn. Code Ann. Tit. 47, Ch. 18 §§ 1-7
Texas Tex. Rev. Civ. Stat. Ann. §§ 141.001 – 141.007
Utah Utah Code Ann. §§ 78-59-101-108
Virginia Va. Code Ann. §§ 59.1-475–477
Washington Wash. Rev. Code Ann. §§ 19.205.010 – 19.205.060, § 19.205.900
W. Virginia W. Va. Code §§ 46A-6H-1 – 46A-6H-8

Despite these laws, certain structured settlement factoring companies have found ways to exploit the laws, in ways possibly not contemplated by state legislatures,  due to a lack of regulation of the sales practices of these companies. There is a clear lack of symmetry when one compares the regulation of solicitors in insurance, real estate, banking and securities with structured settlement factoring. National publicity of such exploitation has led to changes in laws of certain states that have improved their efficacy. But there is plenty of more work to be done.  4structures.com, LLC President continues to be at the forefront of efforts to improve the laws and through his ongoing efforts exposing questionable business practices as the Structured Settlement Watchdog®.





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