§ 27-9.3-2 - Definitions.
SECTION 27-9.3-2
§ 27-9.3-2 Definitions. – For purposes of this chapter:
(1) "Annuity issuer" means an insurer that has issued acontract to fund periodic payments under a structured settlement;
(2) "Dependents" includes a payee's spouse and minor childrenand all other persons for whom the payee is legally obligated to providesupport, including alimony;
(3) "Discounted present value" means the present value offuture payments determined by discounting the payments to the present using themost recently published applicable federal rate for determining the presentvalue of an annuity, as issued by the United States Internal Revenue Service;
(4) "Gross advance amount" means the sum payable to the payeeor for the payee's account as consideration for a transfer of structuredsettlement payment rights before any reductions for transfer expenses or otherdeductions to be made from the consideration;
(5) "Independent parties" means, with respect to anystructured settlement, the payee, any beneficiary irrevocably designated underthe annuity contract to receive payments following the payee's death, theannuity issuer, the structured settlement obligor, and any other party that hascontinuing rights or obligations under the structured settlement;
(6) "Independent professional advice" means advice of anattorney, certified public accountant, actuary or other licensed professionaladviser;
(7) "Net advance amount" means the gross advance amount lessthe aggregate amount of the actual and estimated transfer expenses required tobe disclosed under § 27-9.3-3(5);
(8) "Payee" means an individual who is receiving tax-freepayments under a structured settlement and proposes to make a transfer ofpayment rights under the settlement;
(9) "Periodic payments" includes both recurring payments andscheduled future lump sum payments;
(10) "Qualified assignment agreement" means an agreementproviding for a qualified assignment within the meaning of Section 130 of theUnited States Internal Revenue Code, 26 U.S.C. § 130;
(11) "Responsible administrative authority" means, withrespect to a structured settlement, any government authority vested by law withexclusive jurisdiction over the settled claim resolved by the structuredsettlement;
(12) "Settled claim" means the original tort claim orworkers' compensation claim resolved by a structured settlement;
(13) "Structured settlement" means an arrangement forperiodic payment of damages for personal injuries or sickness established bysettlement or judgment in resolution of a tort claim or for periodic paymentsin settlement of a workers' compensation claim;
(14) "Structured settlement agreement" means the agreement,judgment, stipulation, or release embodying the terms of a structuredsettlement;
(15) "Structured settlement obligor" means, with respect toany structured settlement, the party has the continuing obligation to makeperiodic payments to the payee under a structured settlement agreement or aqualified assignment agreement;
(16) "Structured settlement payment rights" means rights toreceive periodic payments under a structured settlement, whether from thestructured settlement obligor or the annuity issuer, where:
(i) The payee is domiciled in, or the domicile or principalplace of business of the structured settlement obligor or the annuity issuer islocated in, this state; or
(ii) The structured settlement agreement was approved by acourt or responsible administrative authority in this state; or
(iii) The structured settlement agreement is expresslygoverned by the laws of this state;
(17) "Terms of the structured settlement" includes, withrespect to any structured settlement, the terms of the structured settlementagreement, the annuity contract, any qualified assignment agreement and anyorder or other approval of any court or responsible administrative authority orother government authority that authorized or approved the structuredsettlement;
(18) "Transfer" means any sale, assignment, pledge,hypothecation or another alienation or encumbrance of structured settlementpayment rights made by a payee for consideration; provided that the term"transfer" does not include the creation or perfection of a security interestin structured settlement payment rights under a blanket security agreemententered into with an insured depository institution, in the absence of anyaction to redirect the structured settlement payments to an insured depositoryinstitution, or an agent or successor in interest of an insured depositoryinstitution, or to enforce the blanket security interest against the structuredsettlement payment rights;
(19) "Transfer agreement" means the agreement providing for atransfer of structured settlement payment rights;
(20) "Transfer expenses" means all expenses of a transferthat are required under the transfer agreement to be paid by the payee ordeducted from the gross advance amount, including, without limitation, courtfiling fees, attorneys' fees, escrow fees, lien recordation fees, judgment andlien search fees, finders' fees, commissions, and other payments to a broker orother intermediary; "transfer expenses" do not include preexisting obligationsof the payee payable for the payee' s account from the proceeds of a transfer;
(21) "Transferee" means a party acquiring or proposing toacquire structured settlement payment rights through a transfer.