12-2901

12-2901. Definitions

In this chapter, unless the context otherwise requires:

1. "Annuity issuer" means an insurer that has issued a contract that is used to
fund periodic payments under a structured settlement.

2. "Dependents" includes 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 alimony.

3. "Discounted present value" means the present value of future payments, as
determined by discounting the payments to the present using the most recently published
applicable federal rate for determining the present value of an annuity, as issued by the
United States internal revenue service.

4. "Gross advance amount" means the sum payable to the payee or for the payee's
account as consideration for a transfer of structured settlement payment rights before
any reductions for transfer expenses or other deductions to be made from the
consideration.

5. "Independent professional advice" means the advice of an attorney, certified
public accountant, actuary or other licensed professional adviser.

6. "Interested parties" means, with respect to any structured settlement, the
payee, any beneficiary irrevocably designated under the annuity contract to receive
payments following the payee's death, the annuity issuer, the structured settlement
obligor and any other party that has continuing rights or obligations under the
structured settlement.

7. "Net advance amount" means the gross advance amount less the aggregate amount of
the actual and estimated transfer expenses required to be disclosed under this chapter.

8. "Payee" means an individual who receives tax-free damage payments under a
structured settlement and who proposes to make a transfer of payment rights under the
structured settlement.

9. "Periodic payments" includes both recurring payments and scheduled future lump
sum payments.

10. "Qualified assignment agreement" means an agreement that provides for a
qualified assignment within the meaning of section 130 of the internal revenue code as
defined by section 42-1001.

11. "Responsible administrative authority" means, with respect to a structured
settlement, any government authority that is vested by law with exclusive jurisdiction
over the settled claim that is resolved by the structured settlement.

12. "Settled claim" means the original tort claim or workers' compensation claim
that is resolved by a structured settlement.

13. "Structured settlement" means an arrangement for periodic payment of damages for
personal injuries or sickness that is established by settlement or judgment in resolution
of a tort claim or for periodic payments in settlement of a workers' compensation claim.

14. "Structured settlement agreement" means the agreement, judgment, stipulation or
release that embodies the terms of a structured settlement.

15. "Structured settlement obligor" means, with respect to any structured
settlement, the party that has the continuing periodic payment obligation to the payee
under a structured settlement agreement or a qualified assignment agreement.

16. "Structured settlement payment rights" means the right to receive periodic
payments under a structured settlement, whether from the settlement obligor or the
annuity issuer, if any of the following apply:

(a) The payee, the structured settlement obligor, the annuity issuer or any other
interested party is domiciled in this state.

(b) The structured settlement agreement was approved by a court or responsible
administrative authority in this state.

17. "Terms of the structured settlement" include, with respect to any structured
settlement, the terms of the structured settlement agreement, the annuity contract, any
qualified assignment agreement and any order or other approval of any court or
responsible administrative authority or other government authority that authorized or
approved the structured settlement.

18. "Transfer" means any sale, assignment, pledge, hypothecation or other form of
alienation or encumbrance of structured settlement payment rights. Transfer does not
include the creation or perfection of a security interest in structured settlement
payment rights under a blanket security agreement entered into with an insured depository
institution, in the absence of any action to redirect the structured settlement payments
to such insured depository institution, or an agent or successor in interest thereof, or
otherwise to enforce the blanket security interest against the structured settlement
payment rights.

19. "Transfer agreement" means the agreement that provides for transfer of
structured settlement payment rights from a payee to a transferee.

20. "Transfer expenses" means all expenses of a transfer required under the transfer
agreement to be paid by the payee or deducted from the gross advance amount, including
court filing fees, attorney fees, escrow fees, lien recordation fees, judgment and lien
search fees, finders' fees, commissions and other payments to a broker or other
intermediary. Transfer expenses does not include preexisting obligations of the payee
payable for the payee's account from the proceeds of a transfer.

21. "Transferee" means a party acquiring or proposing to acquire structured
settlement payment rights through a transfer.