What is the law related to the sale of my structured settlement annuity?
There are laws in place to protect individuals who are selling their structured settlement annuity.
In fact there is a federal transfer statute, and 47 states have a state law regulating the sale of a structured settlement annuity. The federal law is called the The Federal Structured Settlement Protection Act (SSPA) of 2002, and each of the 47 states have their own law which is listed below.
The sale of almost every structured settlement annuity in the United States must be approved by a state court. The state court not only makes the transaction permanent and secure for the buyer, it also protects the seller. As part of the court order transferring the rights to the future payments, the buyer must, per the court order, pay the seller the agreed upon purchase amount.
To make sure that seller of structured settlement annuity payments are not making a mistake by trading future payments for a lumpsum today, the judge that reviews each transaction must consider whether such a transaction is in the best interest of the seller. The seller must provide the judge with the reasons for the sale of their structured settlement annuity, and only if the judge confirms this is in the best interest of the seller will he or she approve the court order.
Federal & State Laws
Alabama
Enacted: April 27, 2006 Effective: August 01, 2006
Permits the sale or assignment of Alabama structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Alaska
Enacted: May 14, 2003 Effective: August 12, 2003
Permits the sale or assignment of Alaska structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Arizona
Enacted: May 20, 2002 Effective: August 22, 2002
Permits the sale or assignment of Arizona structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Arkansas
Enacted: April 13, 2005 Effective: August 12, 2005
Permits the sale or assignment of Arkansas structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
California
No direct or indirect transfer of structured settlement payment rights by a payee to which this article applies shall be effective, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the provisions of this section are satisfied.
Colorado
Enacted: April 20, 2004 Effective: July 01, 2004
Permits the sale or assignment of Colorado structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Connecticut
Enacted: June 18, 2003 Effective: October 01, 2003
Permits the sale or assignment of Connecticut structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Delaware
Enacted: December 25, 1999 Effective: June 27, 2000
Permits the sale or assignment of Delaware structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Florida
Enacted: June 13, 2001 Effective: October 01, 2001
Permits the sale or assignment of Florida structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Georgia
Enacted: June 04, 2003 Effective: July 01, 2003
Permits the sale or assignment of Georgia structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Hawaii
Enacted: May 26, 2006 Effective: May 26, 2006
Permits the sale or assignment of Hawaii structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Idaho
Enacted: March 26, 2001 Effective: July 01, 2001
Permits the sale or assignment of Idaho structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Illinois
Enacted: August 11, 2003 Effective: January 01, 2004
Permits the sale or assignment of Illinois structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Indiana
Enacted: May 10, 2001 Effective: July 01, 2005
Permits the sale or assignment of Indiana structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Iowa
Enacted: May 10, 2001 Effective: July 01, 2001
Permits the sale or assignment of Indiana structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Kansas
Enacted: July 01, 2005 Effective: July 01, 2005
Permits the sale or assignment of Kansas structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Kentucky
Enacted: April 07, 1998 Effective: July 15, 1998
Permits the sale or assignment of Kentucky structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Louisiana
Enacted: June 27, 2003 Effective: August 15, 2003
Permits the sale or assignment of Louisiana structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Maine
Enacted: June 27, 2003 Effective: August 15, 2003
Permits the sale or assignment of Maine structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Maryland
Enacted: May 11, 2000 Effective: October 01, 2000
Permits the sale or assignment of Maryland structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Massachusetts
Enacted: January 12, 2001 Effective: April 12, 2001
Permits the sale or assignment of Massachusetts structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Michigan
Enacted: July 18, 2006 Effective: September 01, 2006
Permits the sale or assignment of Michigan structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Minnesota
Enacted: May 25, 1999 Effective: July 01, 1999
Permits the sale or assignment of Minnesota structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Mississippi
Enacted: April 02, 2002 Effective: July 01, 2002
Permits the sale or assignment of Mississippi structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Missouri
Enacted: July 13, 1999 Effective: August 28, 1999
Permits the sale or assignment of Missouri structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Montana
Enacted: April 21, 2005 Effective: October 01, 2005
Permits the sale or assignment of Montana structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Nebraska
Enacted: April 04, 2001 Effective: July 01, 2001
Permits the sale or assignment of Nebraska structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Nevada
Enacted: May 20, 2003 Effective: October 01, 2003
Permits the sale or assignment of Nevada structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
New Hampshire
This state does not yet have its own structured settlement transfer law enacted. People who live there MAY be able to transfer their structured settlement payment rights under the law of the state where the insurance company is based.
New Jersey
Enacted: July 02, 2001 Effective: January 01, 2002
Permits the sale or assignment of New Jersey structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
New Mexico
Enacted: July 01, 2005 Effective: July 01, 2005
Permits the sale or assignment of New Mexico structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
New York
Enacted: September 17, 2002 Effective: July 01, 2002
Permits the sale or assignment of New York structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections. Amended 9/21/2004.
North Carolina
Enacted: August 04, 1999 Effective: October 01, 1999
Permits the sale or assignment of North Carolina structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
North Dakota
This state does not yet have its own structured settlement transfer law enacted. People who live there MAY be able to transfer their structured settlement payment rights under the law of the state where the insurance company is based.
Ohio
Enacted: July 27, 2000 Effective: September 27, 2000
Permits the sale or assignment of Ohio structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Oklahoma
Enacted: April 10, 2001 Effective: November 01, 2001
Permits the sale or assignment of Oklahoma structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Oregon
Enacted: January 01, 2006 Effective: January 01, 2006
Permits the sale or assignment of Oregon structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Pennsylvania
Enacted: February 11, 2000 Effective: April 11, 2000
Permits the sale or assignment of Pennsylvania structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Rhode Island
Enacted: July 13, 2001 Effective: July 13, 2001
Permits the sale or assignment of Rhode Island structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
South Carolina
Enacted: May 14, 2002 Effective: June 14, 2002
Permits the sale or assignment of South Carolina structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
South Dakota
2003
No direct or indirect transfer of structured settlement payment rights is effective and no structured settlement obligor or annuity issuer is required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based on the following express findings by such court or responsible administrative authority:
- The transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents;
- The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived such advice in writing; and
- The transfer does not contravene any applicable statute or the order of any court or other government authority.
Tennessee
Enacted: May 23, 2000 Effective: January 01, 2001
Permits the sale or assignment of Tennessee structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Texas
Enacted: June 20, 2003 Effective: September 01, 2003
Permits the sale or assignment of Texas structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Utah
Enacted: March 15, 2002 Effective: May 06, 2002
Permits the sale or assignment of Utah structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Vermont
This state does not yet have its own structured settlement transfer law enacted. People who live there MAY be able to transfer their structured settlement payment rights under the law of the state where the insurance company is based.
Virginia
Enacted: March 23, 2001 Effective: July 01, 2001
Permits the sale or assignment of Virginia structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Washington
Enacted: May 07, 2001 Effective: July 22, 2001
Permits the sale or assignment of Washington structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Washington, D.C.
The District does not yet have its own structured settlement transfer law enacted. People who live there MAY be able to transfer their structured settlement payment rights under the law of the state where the insurance company is based.
West Virginia
Enacted: April 17, 1999 Effective: July 01, 1999
Permits the sale or assignment of West Virginia structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.
Wisconsin
This state does not yet have its own structured settlement transfer law enacted. People who live there MAY be able to transfer their structured settlement payment rights under the law of the state where the insurance company is based.
Wyoming
Enacted: March 15, 2006 Effective: July 01, 2006
Permits the sale or assignment of Wyoming structured settlement payment rights, subject to a court’s review and approval based on showing that the proposed transfer is in the consumer’s "best interests," taking into account the welfare of the consumer’s dependents (if any). Requires certain disclosures and other consumer protections.