12-587. Funding judgments for periodic
installments
A. Each party liable for all or a portion of a judgment containing periodic
installments shall provide funding, separately or jointly, for the unpaid installments in
a form prescribed in section 12-588. The funding shall be provided not later than the
date the judgment is subject to execution or not later than thirty days after the
judgment is entered, whichever is later, unless it is superseded or the power to execute
on the judgment is otherwise suspended.
B. A liability insurer having a contractual obligation or a person adjudged to have
an obligation to pay all or part of a judgment entered for periodic installments is
obligated to provide funding to the extent of the contractual or adjudged obligation. In
determining if a judgment containing periodic installments for future damages exceeds
limits under a liability insurance policy, the installments for future damages in the
judgment shall be discounted to present value under section 12-589 to compute the lump
sum value. The lump sum value or the cost of an annuity which would satisfy the funding
requirement for installments of future damages, whichever is less, must be added to the
total of any lump sum damages contained in the judgment for each claimant. The amount so
computed shall be compared to applicable limits under the policy.
C. A judgment creditor or successor in interest and any party having rights under
subsection E of this section may at any time subsequent to the judgment request the court
to find that funding was not provided or maintained with regard to a judgment obligation
owing to the requesting party. If the court finds that such funding as required by the
judgment was not provided, the court shall order that funding be provided within the time
ordered by the court. If such funding as required by the judgment is not provided within
the time specified by the court, the court shall compute the lump sum equivalent of the
obligation under section 12-589 and enter a judgment for that amount in favor of the
requesting party.
D. If a person who is the only person liable for a portion of a judgment for
periodic installments fails to provide or maintain funding, the right to a lump sum
judgment under subsection C of this section applies only against that person and the
portion of the judgment owed.
E. If more than one person is liable for all or a portion of periodic installments
ordered by the judgment, and the required funding is provided by one or more but fewer
than all of the persons liable, those providing funding may bring an action to satisfy or
protect rights of reimbursement from a person not providing funding. If a person who has
provided funding seeks to enforce rights for funding against a nonfunding person, the
court may order the nonfunding person to indemnify those providing funding for a
proportionate share of the cost of the funding provided or of the cost of an annuity as
provided in section 12-588 which would satisfy the funding requirement.
F. If funding approved by the court has been provided, the judgment debtor on whose
behalf the funding is provided is discharged and any lien against the judgment debtor is
released. A liability insurer providing funding that meets the requirements of section
12-588 on behalf of a judgment debtor, to the extent it is obligated to do so under any
applicable liability insurance contract, is deemed to have satisfied its duty to pay
damages.
G. The court in which a trial is conducted under this article shall retain
jurisdiction to enforce the provisions of this section if a judgment for periodic
installments is entered.
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