(1)PURPOSE.–The purpose of this section is to protect recipients of structured settlements who are involved in the process of transferring structured settlement payment rights.
(a)”Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement.
(c)”Applicable federal rate” means the most recently published applicable rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service pursuant to s. 7520 of the United States Internal Revenue Code, as amended.
(d)”Assignee” means any party that acquires structured settlement payment rights directly or indirectly from a transferee of such rights.
(e)”Dependents” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including spousal maintenance.
(g)”Discounted present value” means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate as the discount rate.
(j)”Payee” means an individual who is receiving tax-free damage payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement.
(k)”Qualified assignment agreement” means an agreement providing for a qualified assignment, as authorized by 26 U.S.C. s. 130 of the United States Internal Revenue Code, as amended.
(l)”Settled claim” means the original tort claim resolved by a structured settlement.
(m)”Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim.
(n)”Structured settlement agreement” means the agreement, judgment, stipulation, or release embodying the terms of a structured settlement, including the rights of the payee to receive periodic payments.
(o)”Structured settlement obligor” means the party who is obligated to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement.
(q)”Terms of the structured settlement” means the terms of the structured settlement agreement; the annuity contract; a qualified assignment agreement; or an order or approval of a court or other government authority authorizing or approving the structured settlement.
(r)”Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration.
(s)”Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee.
(t)”Transferee” means a person who is receiving or who will receive structured settlement payment rights resulting from a transfer.