Sell Annuities & Structured Settlements in California

Sell Structured Settlements                       Sell Structured Insurance Settlements

CALIFORNIA

Prior to selling structured insurance settlements in CA, one needs to be keenly aware of their rights as a structured insurance settlement recipient under the California Structured Settlement Protection Act.

Receiving lump sum cash for structured settlement payments can be an exciting proposition to a structured insurance settlement recipient in California. Settlement Exchange recommends that you review your structured insurance recipient and annuitant rights before contemplating the sale of structured settlement payments in California or even procuring cash quotes for your structured settlement.

We firmly believe that basic education is the key to securing the best quotes for structured insurance settlements and lottery annuity payments. We always advise that one knows their rights as protected under the California Structured Settlement Protection Act. We also advise that one should secure their own legal advice before attempting to get cash for structured settlement payments.

The California Structured Settlement Protection Act dictates that a transferee of structured settlements must reside in the state of California. An California State Court must also approve the selling of the structured insurance settlement and the sale of structured insurance settlements has to be in the best interest of the structured settlement recipient in all cases.

We have attached a copy of the California Structured Settlement Protection Act and a direct link for your benefit.

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ins&group=10001-11000&file=10134-10139.5

INSURANCE CODE

SECTION 1013410139.5

10134.  For the purposes of this article, the following terms have

the following meanings:

(a) “Buyer’s first right of refusal” means any provision in the

transfer agreement or related documents that obligate the payee to

give to the buyer the first choice or option to purchase any

remaining structured settlement rights belonging to the payee.

(b) “Dependents” include the 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.

(c) “Discounted present value” means the fair present value of

future payments, as determined by discounting those 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.

(d) “Effective equivalent interest rate,” with respect to a

transfer of structured settlement payment rights, means the

annualized rate of interest on the net advance amount, calculated by

treating the transferred structured settlement payments as if they

were installment payments on a loan, with each payment applied first

to accrued unpaid interest and then to principal.

(e) “Expenses” means all broker’s commissions, service charges,

application or processing fees, closing costs, filing or

administrative charges, legal fees, notary fees and other

commissions, fees, costs, and charges that a payee would have to pay

to transfer the structured settlement payment rights of a structured

settlement agreement or that would be deducted from the gross

consideration that would be paid to the payee in connection with the

transfer of the structured settlement payment rights of a structured

settlement agreement.

(f) “Independent professional advice” means advice of an attorney,

certified public accountant, actuary, or other licensed professional

adviser meeting all of the following requirements:

(1) The adviser is engaged by a claimant or payee to render advice

concerning the legal, tax, or financial implications of a structured

settlement or a transfer of structured settlement payment rights.

(2) The adviser’s compensation for rendering independent

professional advice is not affected by occurrence or lack of

occurrence of a settlement or transfer.

(3) A particular adviser is not referred to the payee by the

transferee or its agent, except that the transferee may refer the

payee to a lawyer referral service or agency operated by a state or

local bar association.

(g) “Interested parties” means, with respect to a structured

settlement agreement, the payee, the payee’s attorney, 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 who has

continuing rights or obligations under the structured settlement

agreement. If the designated beneficiary is a minor, the beneficiary’

s parent or guardian shall be an interested party.

(h) “Payee” means an individual who received tax-free payments

pursuant to a structured settlement agreement.

(i) “Qualified assignment agreement” means an agreement providing

for a qualified assignment within the meaning of Section 130 of Title

26 of the United States Code, as amended from time to time.

(j) “Structured settlement agreement” means an arrangement for

periodic payment of damages established by settlement or judgment in

resolution of a tort claim in which the payment of the judgment or

award is paid in whole, or in part, in periodic tax-free payments

rather than a lump-sum payment. A structured settlement agreement

entered into pursuant to Section 667.7 of the Code of Civil Procedure

or Section 970.6 or 984 of the Government Code is not subject to the

provisions of this article other than the requirements of Section

10138.

(k) “Structured settlement obligor” means the party that has the

continuing periodic payment obligation to the payee under a

structured settlement agreement or a qualified assignment agreement.

(l) “Structured settlement payment rights” means rights to receive

periodic payments, including lump-sum payments, pursuant to a

structured settlement agreement, whether from the settlement obligor

or an annuity issuer.

(m)  “Terms of the structured settlement” include, with respect to

a structured settlement agreement, the terms of the structured

settlement agreement, annuity contract, qualified assignment

agreement, and any order or approval of a court or responsible

administrative authority or other governmental authority authorizing

or approving the structured settlement.

(n) “Transfer” means any sale, assignment, pledge, hypothecation,

or other form of alienation or encumbrance made for consideration.

(o) “Transfer agreement” means the agreement providing for the

transfer, and any other document used to effectuate the transfer,

from the payee to the transferee of structured settlement payment

rights of a structured settlement agreement.

(p) “Transferee” means any person receiving structured settlement

payment rights resulting from a transfer.

10135. (a) This article is only applicable to transfers entered

into on or after January 1, 2000.

(b) Notwithstanding subdivision (a), the changes to this article

made by the act amending this section in the 2001-02 Regular Session

shall only be applicable to transfers entered into on or after

January 1, 2002.

(c) This article is only applicable to transfers of structured

settlement payment rights if one of the following requirements is

met:

(1) The payee is domiciled in California at the time the transfer

agreement is signed by the payee.

(2) The payee is not domiciled in California at the time the

transfer agreement is signed and the state where the payee is

domiciled does not have a structured settlement transfer statute, but

either the structured settlement obligor or annuity issuer is

domiciled in California.

10136.  (a) No direct or indirect transfer of structured settlement

payment rights shall be effective by a payee to which this article

applies 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.

(b) Ten or more days before the payee executes a transfer

agreement, the transferee shall provide the payee with a separate

written disclosure statement, accurately completed with the

information that applies to the transfer agreement, in substantially

the following form, in at least 12-point type unless otherwise

indicated (bracketed instructions shall not appear in the form):

“Disclosure Notice Required By Law [14-point boldface type]

You are selling (technically called ‘transferring’) your right to

receive your payments under a structured settlement. You should get

this disclosure notice at least 10 days before you sign any contract.

IMPORTANT TERMS: [14-point boldface type ]

You have agreed to sell to the transferee future payments totaling

____ dollars ($____) in exchange for a purchase price of ____

dollars ($____).

Those future payments have a discounted present value equal to

____ dollars ($____), calculated by applying the discount rate of

____ percent utilized by the Internal Revenue Service to value

annuities in probate proceedings.

The purchase price to be paid to you was calculated using a

discount rate of ____ percent.

The purchase price payable to you is less than the present value

of the future payments stated above because the discount rate of your

transaction is greater than the rate utilized by the Internal

Revenue Service.

For comparison purposes:

If you did not sell your right to receive structured settlement

payments, but instead borrowed the net amount of $____ and paid that

loan back in installments with each of the payments you are now

selling, the equivalent interest rate you would be paying for that

loan would be ____% per year.

[The text and information set forth above under ‘IMPORTANT TERMS’

shall be in 14-point type and circumscribed by a box with a bold

border]

To figure the net amount we are paying, we have charged you for

the following expenses:

[itemize in a list by type and amount]

for a total of $____ in expenses.

You should get independent professional advice about whether

selling your structured settlement payments is a good idea for you

and for your dependents.

You are advised to seek independent legal or financial advice

regarding the transaction and, under the law, the cost of that

advice, up to one thousand five hundred dollars ($1,500) will be paid

by the transferee, the person or entity to whom you have agreed to

transfer and assign the payments in question. The transferee or

purchaser’s accountant, counsel, or actuary may not advise you in

this transaction.

You also should get independent professional advice from an

accountant or lawyer experienced in tax matters about any income tax

consequences from selling your structured settlement payments. We

cannot give you the name of anyone to advise you.

Court approval is needed [14-point boldface type]. A court must

approve any agreement you sign to sell your rights under a structured

settlement. You will not receive any money until the court approves

the sale. Court approval could take more than 30 days following the

day you sign an agreement selling your rights under a structured

settlement.

A sale of future structured settlement payments will mean that you

will no longer receive the future payments that are sold. You are

advised to enter into this transaction only after you have carefully

considered the consequences of the transaction.

You may cancel the contract before court approval [14-point

boldface type]. You may cancel the agreement selling (or

transferring) your rights under a structured settlement without any

cost or obligation. You may cancel at any time before the court

approves the contract. You will get notice of the date of the court

hearing.

If you want to cancel, you do not need any special form. But, you

must cancel in writing. Send your cancellation to: [insert transferee’

s name and address].

If you believe that you have been treated unfairly or have been

misled, you should contact your local district attorney or the state

Attorney General.”

(c) The transfer agreement shall be written in at least 12-point

type and shall be complete and without blank spaces to be completed

after the payee’s signature. The transfer agreement shall set forth

clear and conspicuously, and in no less than 12-point type, all of

the following:

(1) A statement that the agreement is not effective until the date

on which a court enters a final order approving the transfer

agreement and that payment to the payee pursuant to the transfer

agreement will be delayed up to 30 days or more after the date the

payee signed the transfer agreement in order for the court to review

and approve the transfer agreement.

(2) The amounts and due dates of the structured settlement

payments to be transferred.

(3) The aggregate amount of the structured settlement payments to

be transferred. This amount shall be disclosed in the form prescribed

in subdivision (b).

(4) The aggregate amount of all expenses, if any, to be deducted

from the purchase price to be paid to the payee in exchange for the

payments to be transferred, and an itemization of all expenses by

type and amount.

(5) The amount payable to the payee, net of all expenses, in

exchange for the payments to be transferred. This amount shall be

disclosed in the form prescribed in subdivision (b).

(6) The discounted present value of all structured settlement

payments to be transferred and a statement that “This is the value of

your structured settlement in current dollars.” This amount shall be

disclosed in the form prescribed in subdivision (b).

(7) The federal rate, as described in subdivision (c) of Section

10134, used in determining the discounted present value.

(8) The effective equivalent interest rate, which shall be

disclosed in the following statement:

“YOU WILL BE PAYING THE EQUIVALENT OF AN INTEREST RATE OF ____%

PER YEAR.

Based on the net amount that you will receive from us and the

amounts and timing of the structured settlement payments that you are

transferring to us, if the transferred structured settlement

payments were installment payments on a loan, with each payment

applied first to accrued unpaid interest and then to principal, it

would be as if you were paying interest to us of ____% per year,

assuming funding on the effective date of transfer.”

This percentage amount shall be disclosed in the form prescribed

in subdivision (b) in the space for “the equivalent interest rate you

would be paying for this loan would be ____% per year.”

(9) The quotient (expressed as a percentage) obtained by dividing

the net payment amount by the discounted present value of the

payments.

(10) A statement that the payee should obtain independent

professional advice regarding any federal and state income tax

consequences arising from the proposed transfer, and that the

transferee may not refer the payee to any specific adviser for that

purpose.

(11) A statement that the court approving the transfer agreement

retains continuing jurisdiction to interpret and monitor

implementation of the agreement as justice may require.

(12) The following statement: “If you believe you were treated

unfairly or were misled as to the nature of the obligations you

assumed upon entering into this agreement, you should report those

circumstances to your local district attorney or the office of the

Attorney General.”

(13) The following statement printed in 14-point type,

circumscribed by a box with a bold border, and set forth immediately

above or adjacent to the space reserved for the payee’s signature:

“You have the right to cancel this agreement without any cost or

obligation until the date the court approves this agreement. You will

receive notice of the court hearing date when approval may occur.

You must cancel in writing and send your cancellation to [insert

transferee’s name and address].”

(d) The contract for transferring the structured settlement

payment rights may not violate Section 10138.

(e) At any time before the date on which a court enters a final

order approving the transfer agreement pursuant to Section 10139.5,

the payee may cancel the transfer agreement, without cost or further

obligation, by providing written notice of cancellation to the

transferee.

10137. A transfer of structured settlement payment rights is void

unless a court reviews and approves the transfer and finds the

following conditions are met:

(a) The transfer of the structured settlement payment rights is

fair and reasonable and in the best interest of the payee, taking

into account the welfare and support of his or her dependents.

(b) The transfer complies with the requirements of this article,

will not contravene other applicable law, and the court has reviewed

and approved the transfer as provided in Section 10139.5.

10138. (a) A transfer agreement, as defined in subdivision (o) of

Section 10134, shall not include any provision described in the

paragraphs below. Any inclusion of a prohibited provision, with

respect to a seller who is a California resident, shall make the

provision void and unenforceable.

(1) Any provision that waives the seller’s right to sue under any

law, or in which the seller agrees not to sue, or that waives

jurisdiction or standing to sue under the contract.

(2) Any provision that requires the seller to indemnify and hold

harmless the buyer, or to pay the buyer’s costs of defense, in any

claim or action brought by the seller or on the seller’s behalf

contesting the sale for any reason.

(3) Any provision that waives benefits or rights conferred by law

with respect to garnishment of wages.

(4) Any provision providing that the contract is confidential or

proprietary, belonging to the buyer.

(5) Any provision in which the seller stipulates to a confession

of judgment.

(6) Any provision requiring the seller to pay the buyer’s attorney’

s fees and costs if the purchase agreement is not completed.

(7) Any provision requiring the seller to pay any tax liability

arising under the federal tax laws, other than the seller’s own tax

liability, if any, that results from the transfer.

(8) Any provision providing for brokerage fees incurred in the

contract to be deducted from the purchase price disclosed pursuant to

paragraph (5) of subdivision (b) of Section 10136.

(9) If the payee is domiciled in California at the time that the

transfer agreement is signed by the payee, any forum selection

provision providing for jurisdiction to be in a court outside of

California for any action arising under the contract.

(10) If the payee is domiciled in California at the time that the

transfer agreement is signed by the payee, any choice-of-law

provision that provides for controlling law to be other than

California law in any action arising under the contract.

(11) A provision that provides the transferee with a security

interest or collateral interest in any structured settlement payment

rights that exceed the actual dollar amount of the structured

settlement payment rights being transferred.

(12) Any provision that creates a “buyer’s first right of refusal”

to purchase any remaining structured payment rights that the payee

may desire to sell in the future.

(b) The provisions in this section may not be waived by agreement

of the parties.

10139.  (a) At the time of filing a petition pursuant to Section

10139.5 for court approval, the transferee shall file with the

Attorney General a copy of the transferee’s petition for approval, a

copy of the written disclosure statement required by subdivision (a)

of Section 10136, a copy of the transfer agreement as defined in

subdivision (o) of Section 10134, and, unless excepted pursuant to

subparagraph (H) of paragraph (2) of subdivision (f) of Section

10139.5, a copy of the annuity contract, any qualified assignment

agreement, the underlying structured settlement agreement, or any

order or approval of any court or responsible administrative

authority authorizing or approving the structured settlement, and a

copy and proof of notice to the interested parties, and a verified

statement from the transferee stating that all of the conditions set

forth in Sections 10136, 10137, and 10138 have been met.

(b) The Attorney General may, but is not required to, review any

transfer agreement in order to ensure that the transfer meets the

requirements of this article.

(c) The Attorney General may charge a reasonable fee for the

filing of the transfer agreement as provided in this section. The fee

shall be paid by the transferee.

(d) This section does not apply to a transfer by a payee who is

not a resident of California at the time the payee executes the

transfer agreement.

10139.1.  Any subsequent transfer of any additional structured

settlement payments between the payee and transferee may be made only

after compliance with all of the requirements of this article.

10139.2.  Any notice required by this article shall be deemed to

have been given if addressed to the recipient’s last known address

and deposited, first class postage paid, in the United States mail

not less than five calendar days prior to the date on which notice is

required.

10139.3.  (a) None of the provisions of this article may be waived

by the payee.

(b) Compliance with the requirements set forth in Sections 10136,

10137, and 10138 shall be solely the responsibility of the transferee

in any transfer of structured settlement payment rights.

(c) A payee who proposes to make a transfer of structured

settlement payment rights shall not incur any penalty, shall not

forfeit any application fee or other payment, and shall not otherwise

incur any liability to the proposed transferee based on any failure

of that transfer to satisfy the requirements of Sections 10136,

10137, and 10138.

(d) The transferee and any assignee shall be liable to the

structured settlement obligor and the annuity issuer for any and all

taxes incurred as a consequence of the transfer or as a consequence

of any failure of the transferee or assignee to comply with this

article or the terms of the structured settlement agreement.

(e) Neither the annuity issuer nor the structured settlement

obligor may be required to divide any structured settlement payment

between the payee and any transferee or assignee or between two or

more transferees or assignees.

10139.4.  A violation of this article by a transferee shall

constitute an unfair business practice pursuant to Chapter 5

(commencing with Section 17200) of Part 2 of Division 7 of the

Business and Professions Code and shall be subject to the penalties

and other remedies of that chapter.

10139.5.  (a) A direct or indirect transfer of structured settlement

payment rights is not effective and a structured settlement obligor

or annuity issuer is not 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 based on express written findings by the court that:

(1) The transfer is in the best interest of the payee, taking into

account the welfare and support of the payee’s dependents.

(2) The payee has been advised in writing by the transferee to

seek independent professional advice regarding the transfer and has

either received that advice or knowingly waived, in writing, the

opportunity to receive the advice.

(3) The transferee has complied with the notification requirements

pursuant to paragraph (2) of subdivision (f), the transferee has

provided the payee with a disclosure form that complies with Section

10136, and the transfer agreement complies with Sections 10136 and

10138.

(4) The transfer does not contravene any applicable statute or the

order of any court or other government authority.

(5) The payee understands the terms of the transfer agreement,

including the terms set forth in the disclosure statement required by

Section 10136.

(6) The payee understands and does not wish to exercise the payee’

s right to cancel the transfer agreement.

(b) When determining whether the proposed transfer should be

approved, including whether the transfer is fair, reasonable, and in

the payee’s best interest, taking into account the welfare and

support of the payee’s dependents, the court shall consider the

totality of the circumstances, including, but not limited to, all of

the following:

(1) The reasonable preference and desire of the payee to complete

the proposed transaction, taking into account the payee’s age, mental

capacity, legal knowledge, and apparent maturity level.

(2) The stated purpose of the transfer.

(3) The payee’s financial and economic situation.

(4) The terms of the transaction, including whether the payee is

transferring monthly or lump sum payments or all or a portion of his

or her future payments.

(5) Whether, when the settlement was completed, the future

periodic payments that are the subject of the proposed transfer were

intended to pay for the future medical care and treatment of the

payee relating to injuries sustained by the payee in the incident

that was the subject of the settlement and whether the payee still

needs those future payments to pay for that future care and

treatment.

(6) Whether, when the settlement was completed, the future

periodic payments that are the subject of the proposed transfer were

intended to provide for the necessary living expenses of the payee

and whether the payee still needs the future structured settlement

payments to pay for future necessary living expenses.

(7) Whether the payee is, at the time of the proposed transfer,

likely to require future medical care and treatment for the injuries

that the payee sustained in connection with the incident that was the

subject of the settlement and whether the payee lacks other

resources, including insurance, sufficient to cover those future

medical expenses.

(8) Whether the payee has other means of income or support, aside

from the structured settlement payments that are the subject of the

proposed transfer, sufficient to meet the payee’s future financial

obligations for maintenance and support of the payee’s dependents,

specifically including, but not limited to, the payee’s child support

obligations, if any. The payee shall disclose to the transferee and

the court his or her court-ordered child support or maintenance

obligations for the court’s consideration.

(9) Whether the financial terms of the transaction, including the

discount rate applied to determine the amount to be paid to the

payee, the expenses and costs of the transaction for both the payee

and the transferee, the size of the transaction, the available

financial alternatives to the payee to achieve the payee’s stated

objectives, are fair and reasonable.

(10) Whether the payee completed previous transactions involving

the payee’s structured settlement payments and the timing and size of

the previous transactions and whether the payee was satisfied with

any previous transaction.

(11) Whether the transferee attempted previous transactions

involving the payee’s structured settlement payments that were

denied, or that were dismissed or withdrawn prior to a decision on

the merits, within the past five years.

(12) Whether, to the best of the transferee’s knowledge after

making inquiry with the payee, the payee has attempted structured

settlement payment transfer transactions with another person or

entity, other than the transferee, that were denied, or which were

dismissed or withdrawn prior to a decision on the merits, within the

past five years.

(13) Whether the payee, or his or her family or dependents, are in

or are facing a hardship situation.

(14) Whether the payee received independent legal or financial

advice regarding the transaction. The court may deny or defer ruling

on the petition for approval of a transfer of structured settlement

payment rights if the court believes that the payee does not fully

understand the proposed transaction and that independent legal or

financial advice regarding the transaction should be obtained by the

payee.

(15) Any other factors or facts that the payee, the transferee, or

any other interested party calls to the attention of the reviewing

court or that the court determines should be considered in reviewing

the transfer.

(c) Every petition for approval of a transfer of structured

settlement payment rights, except as provided in subdivision (d),

shall include, to the extent known after the transferee has made

reasonable inquiry with the payee, all of the following:

(1) The payee’s name, address, and age.

(2) The payee’s marital status, and, if married or separated, the

name of the payee’s spouse.

(3) The names, ages, and place or places of residence of the payee’

s minor children or other dependents, if any.

(4) The amounts and sources of the payee’s monthly income and

financial resources and, if presently married, the amounts and

sources of the monthly income and financial resources of the payee’s

spouse.

(5) Whether the payee is currently obligated under any child

support or spousal support order, and, if so, the names, addresses,

and telephone numbers of any individual, entity, or agency that is

receiving child or spousal support from the payee under that order or

that has jurisdiction over the order or the payments in question.

(6) Information regarding previous transfers or attempted

transfers, as described in paragraph (11), (12), or (13) of

subdivision (b). The transferee or payee may choose to provide this

information by providing copies of pleadings, transaction documents,

or orders involving any previous attempted or completed transfer or

by providing the court a summary of available information regarding

any previous transfer or attempted transfer, such as the date of the

transfer or attempted transfer, the payments transferred or attempted

to be transferred by the payee in the earlier transaction, the

amount of money received by the payee in connection with the previous

transaction, and generally the payee’s reasons for pursuing or

completing a previous transaction. The transferee’s inability to

provide the information required by this paragraph shall not preclude

the court from approving the proposed transfer, if the court

determines that the information is not available to the transferee

after the transferee has made a reasonable effort to secure the

information, including making an inquiry with the payee.

(d) With respect to the information required to be included in

every petition for approval of a transfer of structured settlement

payment rights pursuant to paragraphs (2), (3), (4), (5), and (6) of

subdivision (c), that information shall be deemed to be included in

the petition if it is provided at the scheduled hearing on the

proposed transfer through oral testimony or documentary evidence

filed with the court and made a part of the record consistent with

the rules of evidence and procedure.

(e) Following a transfer of structured settlement payment rights

under this article:

(1) The structured settlement obligor and the annuity issuer

shall, as to all parties except the transferee, be discharged and

released from any and all liability for the transferred payments.

(2) The transferee shall be liable to the structured settlement

obligor and the annuity issuer if the transfer contravenes the terms

of the structured settlement for the following:

(A) Any taxes incurred by those parties as a consequence of the

transfer.

(B) Any other liabilities or costs, including reasonable costs and

attorney’s fees, arising from compliance by those parties with the

order of the court or arising as a consequence of the transferee’s

failure to comply with this article.

(3) Neither the annuity issuer nor the structured settlement

obligor may be required to divide any periodic payment between the

payee and any transferee or assignee or between two, or more,

transferees or assignees.

(4) Any further transfer of structured settlement payment rights

by the payee may be made only after compliance with all of the

requirements of this article.

(f) (1) A petition under this article for approval of a transfer

of structured settlement payment rights shall be made by the

transferee and brought in the county in which the payee resides at

the time the transfer agreement is signed by the payee, or, if the

payee is not domiciled in California, in the county in which the

payee resides or in the county where the structured settlement

obligor or annuity issuer is domiciled.

(2) Not less than 20 days prior to the scheduled hearing on any

petition for approval of a transfer of structured settlement payment

rights under this article, the transferee shall file with the court

and serve on all interested parties a notice of the proposed transfer

and the petition for its authorization, and shall include the

following with that notice:

(A) A copy of the transferee’s current petition and any other

prior petition, whether approved or withdrawn, that was filed with

the court in accordance with paragraph (6) of subdivision (c).

(B) A copy of the proposed transfer agreement and disclosure form

required by paragraph (3) of subdivision (a).

(C) A listing of each of the payee’s dependents, together with

each dependent’s age.

(D) A copy of the disclosure required in subdivision (b) of

Section 10136.

(E) A copy of the annuity contract, if available.

(F) A copy of any qualified assignment agreement, if available.

(G) A copy of the underlying structured settlement agreement, if

available.

(H) If a copy of a document described in subparagraph (E), (F), or

(G) is unavailable or cannot be located, then the transferee is not

required to attach a copy of that document to the petition or notice

of the proposed transfer if the transferee satisfies the court that

reasonable efforts to locate and secure a copy of the document have

been made, including making inquiry with the payee. If the documents

are available, but contain a confidentiality or nondisclosure

provision, then the transferee shall summarize in the petition the

payments due and owing to the payee, and, if requested by the court,

shall provide copies of the documents to the court at a scheduled

hearing.

(I) Proof of service showing compliance with the notification

requirements of this section.

(J) Notification that any interested party is entitled to support,

oppose, or otherwise respond to the transferee’s petition, either in

person or by counsel, by submitting written comments to the court or

by participating in the hearing.

(K) Notification of the time and place of the hearing and

notification of the manner in which and the time by which written

responses to the petition must be filed, which may not be less than

15 days after service of the transferee’s notice, in order to be

considered by the court.

(L) If the payee entered into the structured settlement at issue

within five years prior to the date of the transfer agreement, then

the transferee shall provide the following notice to the payee’s

attorney of record at the time the structured settlement was created,

if the attorney is licensed to practice in California, at the

attorney’s address on file with the State Bar of California. The

notice shall be delivered by regular mail and shall contain the

following language:

“Your former client, (insert name, address and telephone number of

payee), the ‘payee,’ has entered into a contract with (insert name

of transferee) to transfer and assign certain future structured

settlement payment rights. The transaction is subject to court review

and approval under California law. As the payee’s former attorney,

you are entitled to receive this notice. You are not required to

represent, advise, or consult with the payee in connection with the

proposed transaction. You are not required to take any action at all

in response to this notice. You may, but are not required to, contact

the payee regarding the transaction. The payee is not required to

consult with you or provide you any information regarding the

transaction, but the payee may do so if he or she wishes.”

The notice to the former attorney described in this section is not

required to be provided if the payee in the transaction was not a

party to the original structured settlement at issue (for example, if

the payee is an heir or beneficiary of the person who was a party to

the original structured settlement). Also, if the payee cannot

recall or identify his or her former attorney and if the identity of

the former attorney cannot be ascertained from the available

structured settlement documents, then the notice described in this

subparagraph is not required to be provided and the transfer may

proceed without the notice.

(g) All court costs and filing fees shall be paid by the

transferee.

(h) No later than the time of filing the petition for court

approval, the transferee shall advise the payee of the payee’s right

to seek independent counsel and financial advice in connection with

the transferee’s petition for court approval of the transfer

agreement, and shall further advise the payee that if the payee

retains counsel, a licensed certified public accountant, or a

licensed actuary in connection with a petition for an order approving

the transfer agreement, that the transferee shall pay the fees of

the payee’s counsel, accountant, or actuary, regardless of whether

the transfer agreement is approved, and regardless of whether the

attorney, accountant, or actuary files any document or appears at the

hearing on the petition for transfer, in an aggregate amount not to

exceed one thousand five hundred dollars ($1,500). The transferee’s

accountant, counsel, or actuary may not advise the payee.

(i) The court shall retain continuing jurisdiction to interpret

and monitor the implementation and closing of the transaction that is

the subject of the transfer agreement as justice requires.

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