CHAPTER 2. ANNUITY STRUCTURED SETTLEMENTS
IC 34-50-2
Chapter 2. Annuity Structured Settlements
IC 34-50-2-1
"Interested party" defined
Sec. 1. As used in this chapter, "interested party" refers to:
(1) the payee;
(2) the annuity issuer;
(3) the structured settlement agreement obligor;
(4) the payee's counsel who assisted in the establishment of thestructured settlement;
(5) a dependent of the payee; or
(6) a family member or relative who is acting as a caregiver forthe payee.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-2
"Structured settlement" defined
Sec. 2. As used in this chapter, "structured settlement" meansperiodic payments of damages established by a settlement or a courtjudgment in resolution of a tort claim for personal injury.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-3
"Transfer" defined
Sec. 3. As used in this chapter, "transfer" means a:
(1) sale;
(2) assignment;
(3) pledge;
(4) hypothecation; or
(5) any other form of alienation or encumbrance;
of structured settlement payment rights made by a payee forconsideration.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-4
"Transferee" defined
Sec. 4. As used in this chapter, "transferee" means a partyacquiring or proposing to acquire structured settlement paymentrights through a transfer agreement.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-5
Court approval of transfers required
Sec. 5. A direct or indirect transfer of structured settlementpayment rights is not effective, and a structured settlement obligor orannuity issuer is not required to make a payment directly orindirectly to a transferee, unless an Indiana court of competentjurisdiction has approved the transfer in a final order in accordancewith sections 7 and 8 of this chapter.As added by P.L.219-2001, SEC.6.
IC 34-50-2-6
Disclosure statements
Sec. 6. Not less than ten (10) days before the date on which apayee becomes obligated under a transfer agreement, the transfereeshall provide to the payee and other interested parties a disclosurestatement, in boldface type of not less than fourteen (14) points insize, that includes the following:
(1) The amounts and due dates of the structured settlementpayments to be transferred under the transfer agreement.
(2) The aggregate amount of the payments disclosed undersubdivision (1).
(3) An estimate of the present fair market value of the futureperiodic payments under the structured settlement agreement.
(4) The gross amount payable to the payee as consideration forthe transfer of the structured settlement payments disclosedunder subdivision (1).
(5) An itemized list of all:
(A) commissions;
(B) fees;
(C) costs;
(D) expenses; and
(E) charges;
payable by the payee or deductible from the gross amountpayable to the payee, as disclosed under subdivision (4).
(6) The net amount payable to the payee after any deduction ismade from the gross amount payable to the payee, as describedin subdivision (5).
(7) The quotient, expressed as a percentage, obtained bydividing the net amount payable to the payee, as disclosedunder subdivision (6), by the estimate of the present fair marketvalue of the future periodic payments, as disclosed undersubdivision (3).
(8) The amount of any penalty and the aggregate amount of anyliquidated damages, including penalties, payable by the payeein the event of a breach of the transfer agreement by the payee.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-7
Final orders; findings
Sec. 7. An Indiana court of competent jurisdiction may approvea transfer of structured settlement payment rights only in a finalorder that is based on the express findings of the court. The expressfindings must include all of the following:
(1) The consideration that the payee will receive for the transferreasonably reflects the present fair market value of the futureperiodic payments under the structured settlement agreement.
(2) The transfer is in the best interest of the payee.
(3) The transfer will not materially impair the payee's ability to
discharge the payee's obligations to the payee's dependents.
(4) If the transferee is the applicant, the transferee has providedto the payee a disclosure statement in accordance with section6 of this chapter.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-8
Applications for approval of transfers
Sec. 8. (a) An application under this chapter for approval of atransfer of structured settlement payment rights must be filed in:
(1) the Indiana court in which the underlying tort action waspending; or
(2) the court of general jurisdiction in the Indiana county inwhich the payee resides.
(b) The following apply to an application filed under subsection(a):
(1) Upon filing of the application, the court shall set a date andtime for a hearing on the application not earlier than twenty (20)days after the application is filed and shall notify the applicantof the date, time, and place of the hearing. The court shall giveprecedence to a hearing set under this section in accordancewith Indiana Trial Rule 40.
(2) The applicant shall file with the court and shall serve on:
(A) all interested parties;
(B) the annuity issuer; and
(C) the structured settlement obligor;
in the manner prescribed in the rules of civil procedure for theservice of process, a notice of the proposed transfer.
(3) The notice required under subdivision (2) shall include:
(A) a copy of the application;
(B) a copy of the proposed transfer agreement, including thetransferee's:
(i) name;
(ii) address; and
(iii) taxpayer identification number;
(C) a copy of the disclosure statement provided by thetransferee under section 6 of this chapter whenever theapplication is filed by a person other than the payee;
(D) notification of the date, time, and place of the hearing onthe application; and
(E) notification that an interested party may support, oppose,or otherwise respond to the application, either in person orby counsel, by:
(i) submitting to the court a written response containingthe interested party's support of, opposition to, orcomments on the application; or
(ii) participating in the hearing.
(4) At the conclusion of the hearing on an application filedunder subsection (a), the court may enter an order:
(A) granting approval with or without modification; or (B) denying approval;
of the transfer. If the court grants approval of the transfer, thecourt shall include in the order all of the express findingsrequired under section 7 of this chapter. If the court denies theapproval of the transfer, the court shall include in the order thereasons for the denial.
(5) An order of the court made under subdivision (4) is a finaland appealable order.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-9
Effect of disapproval of transfers; waiver prohibited; unlawfultransfers
Sec. 9. (a) A payee who proposes to make a transfer of structuredsettlement payment rights does not:
(1) incur a penalty;
(2) forfeit an application fee or other payment; or
(3) otherwise incur a liability to the proposed transferee;
if the transfer is not approved by a court under section 7 of thischapter.
(b) A provision of this chapter may not be waived.
(c) This chapter does not:
(1) authorize a transfer of structured settlement payment rightsin contravention of applicable law; or
(2) give effect to a transfer of structured settlement paymentrights that is void under applicable law.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-10
Immunity
Sec. 10. After a transfer that has been approved in accordancewith this chapter, a structured settlement obligor and an annuityissuer are immune from liability to a payee, or to a party other thana transferee who is claiming through the payee, for paying structuredsettlement payments to a transferee.
As added by P.L.219-2001, SEC.6.
IC 34-50-2-11
Failure to provide disclosure statement as incurable deceptive act
Sec. 11. Failure of a transferee of structured settlement paymentrights to timely provide a true and complete disclosure statement toa payee under this chapter in connection with a direct or indirecttransfer of structured settlement payment rights is an incurabledeceptive act under IC 24-5-0.5.
As added by P.L.219-2001, SEC.6.