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KENTUCKY
Prior to selling structured insurance settlements in KY, one needs to be keenly aware of their rights as a structured insurance settlement recipient under the Kentucky Structured Settlement Protection Act.
Receiving lump sum cash for structured settlement payments can be an exciting proposition to a structured insurance settlement recipient in Kentucky. Settlement Exchange recommends that you review your structured insurance recipient and annuitant rights before contemplating the sale of structured settlement payments in Kentucky 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 Kentucky 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 Kentucky Structured Settlement Protection Act dictates that a transferee of structured settlements must reside in the state of Kentucky. A Kentucky 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 Kentucky Structured Settlement Protection Act and a direct link for your benefit.
http://www.lrc.ky.gov/KRS/454-00/CHAPTER.HTM
454.430 Definitions for KRS 454.430 to 454.435.
As used in KRS 454.430 to 454.435:
(1) “Annuity issuer” means an insurer that has issued an annuity contract to be used to fund periodic payments under a structured settlement;
(2) “Payee” means an individual who is receiving tax-free damage payments under a structured settlement and who wants to make a transfer of payment rights under the structured settlement agreement;
(3) “Protected parties” means, with respect to any structured settlement, the payee, any named beneficiary designated in the annuity contract or structured settlement to receive payments following the payee’s death, or, if the named beneficiary is a minor, the named beneficiary’s parent or guardian, the annuity issuer, and the structured settlement obligor;
(4) “Qualified assignment agreement” means an agreement providing for a qualified assignment that meets the requirements of Section 130 of the Internal Revenue Code, 26 U.S.C. sec. 130, as amended from time to time;
(5) “Settled claim” means the original tort claim resolved by a structured settlement;
(6) “Structured settlement” means an arrangement for periodic payment of damages for personal injuries established by settlement or judgment in resolution of a tort claim;
(7) “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;
(8) “Structured settlement payment rights” means rights to receive periodic payments, including lump sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, where:
(a) The payee or any other protected party is domiciled in this state; or
(b) The settled claim was pending before the courts of this state when the structured settlement was reached;
(9) “Transfer” means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration; and
(10) “Transfer agreement” means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee.
Effective: July 15, 1998
History: Created 1998 Ky. Acts ch. 409, sec. 1, effective July 15, 1998. Page 1 of 1
454.431 Requirement for court approval of transfer of structured settlement payment rights — Express findings that are required.
No transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of any transfer of structured settlement payment rights unless the transfer has been approved in advance in an order of a court of competent jurisdiction, based on the court’s express findings that:
(1) The transfer complies with the requirements of KRS 454.430 to 454.435 and does not contravene other applicable law;
(2) Not less than ten (10) days prior to the date on which the payee entered into the transfer agreement, the transferee has provided to the payee a disclosure statement in bold type, no smaller than fourteen (14) point, setting forth:
(a) The amounts and due dates of the structured settlement payments to be transferred;
(b) The aggregate amount of the payments;
(c) The discounted present value of the payments, together with the discount rate or rates used in determining the discounted present value;
(d) The gross amount payable to the payee in exchange for the payments;
(e) An itemized listing of all brokers’ commissions, service charges, application or processing fees, closing costs, filing or administrative charges, legal fees, notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee; and
(f) The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of any breach of the transfer agreement by the payee;
(3) The payee has established that the transfer is necessary to enable the payee to avoid imminent financial hardship;
(4) The transferee has given written notice of the transferee’s name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and had filed a copy of the notice with the court; and
(5) The payee has consented in writing to the transfer.
Effective: July 15, 1998
History: Created 1998 Ky. Acts ch. 409, sec. 2, effective July 15, 1998. Page 1 of 1
454.450 Definitions for KRS 452.453 and 454.455.
(1) As used in KRS 452.453 and 454.455, “tobacco grower” means any person who is a resident of Kentucky engaged in the production of growing tobacco or receives proceeds from the sale of tobacco in Kentucky for consumption or use. “Tobacco grower” as used in this section includes, but is not limited to, farm operator, owner/operator, cash tenant, landlord of a share tenant, share tenant, or share cropper.
(2) As used in KRS 452.453 and 454.455, “warehouseman” means the owner, operator, manager, lessee, or proprietor of a warehouse engaged in selling tobacco, or his or her agents or employees.
Effective: April 7, 1998
History: Created 1998 Ky. Acts ch. 422, sec. 1, effective April 7, 1998.
Legislative Research Commission Note (7/15/98). In codifying this statute, the phrase “As used in this section” in 1998 Ky. Acts ch. 422, sec. 1, has been treated as if it read “As used in this Act.” Otherwise, the definitions in Section 1 of that Act, which are used in Sections 2 and 3 (KRS 452.453 and 454.455) would be without effect. It is clear from context that this is what must have been intended in drafting this Act. KRS 7.136(1)(h)
454.455 Proof required for damages against tobacco growers and warehousemen — Costs that may be awarded to prevailing defendant.
(1) In a civil action against a tobacco grower for damages alleged to have occurred as a result of use or consumption of tobacco products, in order for liability to be found against a tobacco grower, the plaintiff shall prove by clear and convincing evidence that the tobacco that caused the alleged damage was planted, cultivated, and harvested by that specific tobacco grower and not by any other person.
(2) In a civil action against a warehouseman for damages alleged to have occurred as a result of use or consumption of tobacco products, in order for liability to be found against a warehouseman, the plaintiff shall prove by clear and convincing evidence that the tobacco that caused the alleged damage was sold by that specific warehouseman and not by any other person.
(3) If a suit against a tobacco grower or a warehouseman is dismissed or the defendant prevails at trial, the defendant may be entitled to three (3) times the entire costs of defending the action, including but not limited to legal fees, expert witnesses, and other expenses arising from the defense of the action.
Effective: April 7, 1998
History: Created 1998 Ky. Acts ch. 422, sec. 3, effective April 7, 1998.
