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1999 SESSION

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HB 1922 Structured settlements; authorization for transfer.

Introduced by: Clifton A. Woodrum | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Structured settlements; authorization for transfer. Conditions the direct or indirect transfer of structured settlement payment rights upon the prior authorization of a court of competent jurisdiction or a responsible administrative authority. The court or authority, as appropriate, must make several findings as a precondition to transfer, including a finding that the proposed transfer satisfies any federal hardship standard then in effect. The bill also requires the proposed transferee to make disclosures concerning fees, charges and other amounts that will be deducted from the proceeds payable by the transferee to the transferor. The transferee must also disclose to the transferor the structured settlement’s discounted present value, together with the discount rate used to compute that value. A structured settlement is an arrangement for periodic payment of damages for personal injuries established by a settlement or judgment in resolution of a tort claim, or for periodic payments in settlement of a workers’ compensation claim. Lump sum payments under the Virginia Workers’ Compensation Act are not subject to the provisions of this bill. The bill’s provisions will expire on July 1, 2001, unless federal legislation has been enacted by that date which establishes a federal hardship standard governing the transfer of structured settlement payment rights.

SUMMARY AS PASSED:

Structured settlements; authorization for transfer. Conditions the direct or indirect transfer of structured settlement payment rights upon the prior authorization of a court of competent jurisdiction or a responsible administrative authority. The court or authority, as appropriate, must make several findings as a precondition to transfer, including a finding that the proposed transfer is in the best interests of the payee and his dependents. The bill also requires the proposed transferee to make disclosures concerning fees, charges and other amounts that will be deducted from the proceeds payable by the transferee to the transferor. The transferee must also disclose to the transferor the structured settlement’s discounted present value, together with the discount rate used to compute that value. A structured settlement is an arrangement for periodic payment of damages for personal injuries established by a settlement or judgment in resolution of a tort claim, or for periodic payments in settlement of a workers’ compensation claim. Lump sum payments under the Virginia Workers’ Compensation Act are not subject to the provisions of this bill. The bill’s provisions will expire on July 1, 2001, unless federal legislation has been enacted by that date which establishes a federal hardship standard governing the transfer of structured settlement payment rights.

SUMMARY AS PASSED HOUSE:

Structured settlements; authorization for transfer. Conditions the direct or indirect transfer of structured settlement payment rights upon the prior authorization of a court of competent jurisdiction or a responsible administrative authority. The court or authority, as appropriate, must make several findings as a precondition to transfer, including a finding that the extraordinary, unanticipated and imminent needs of the proposed transferor, his spouse, or his dependents make the transfer appropriate. The bill also requires the proposed transferee to make disclosures concerning fees, charges and other amounts that will be deducted from the proceeds payable by the transferee to the transferor. The transferee must also disclose to the transferor the structured settlement’s discounted present value, together with the discount rate used to compute that value. A structured settlement is an arrangement for periodic payment of damages for personal injuries established by a settlement or judgment in resolution of a tort claim, or for periodic payments in settlement of a workers’ compensation claim. Lump sum payments under the Virginia Workers’ Compensation Act are not subject to the provisions of this bill.

SUMMARY AS INTRODUCED:

Structured settlements; authorization for transfer. Conditions the direct or indirect transfer of structured settlement payment rights upon the prior authorization of a court of competent jurisdiction or a responsible administrative authority. The court or authority, as appropriate, must make several findings as a precondition to transfer, including findings (i) that the transferor will experience financial hardship unless such transfer is approved and that the transfer will not cause financial hardship in the future, and (ii) that the transferor has received professional advice concerning the tax, legal and financial implications of such transfer. The bill also requires the proposed transferee to make disclosures concerning fees, charges and other amounts that will be deducted from the proceeds payable by the transferee to the transferor. The transferee must also disclose to the transferor the structured settlement’s discounted present value, together with the discount rate used to compute that value. A structured settlement is an arrangement for periodic payment of damages for personal injuries established by a settlement or judgment in resolution of a tort claim, or for periodic payments in settlement of a workers’ compensation claim.