Sell Structured Settlements Sell Structured Insurance Settlements
OREGON
Prior to selling structured insurance settlements in OR, one needs to be keenly aware of their rights as a structured insurance settlement recipient under the Oregon Structured Settlement Protection Act.
Receiving lump sum cash for structured settlement payments can be an exciting proposition to a structured insurance settlement recipient in Oregon. Settlement Exchange recommends that you review your structured insurance recipient and annuitant rights before contemplating the sale of structured settlement payments in Oregon 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 Oregon 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 Oregon Structured Settlement Protection Act dictates that a transferee of structured settlements must reside in the state of Oregon. An Oregon 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 Oregon Structured Settlement Protection Act and a direct link for your benefit.
http://landru.leg.state.or.us/05reg/measures/sb0600.dir/sb0645.en.html
73rd OREGON LEGISLATIVE ASSEMBLY–2005 Regular Session
Enrolled
Senate Bill 645
Sponsored by Senator METSGER
CHAPTER …………….
AN ACT
Relating to transfers of structured settlement rights.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 6 of this 2005 Act:
(1) ‘Annuity issuer’ means an insurer that has entered into a
contract to fund periodic payments under a structured settlement
agreement.
(2) ‘Obligor’ means a party that has a continuing obligation to
make periodic payments to a payee under a structured settlement
agreement or an agreement that provides for a qualified
assignment as defined in section 130 of the Internal Revenue
Code, as of January 1, 2006.
(3) ‘Payee’ means an individual who is receiving tax-free
payments under a structured settlement agreement and proposes to
make a transfer of payment rights.
(4) ‘Payment rights’ means rights to receive periodic payments
under a structured settlement agreement, whether from the obligor
or the annuity issuer.
(5) ‘Periodic payments’ includes both recurring payments and
scheduled future lump sum payments.
(6) ‘Responsible administrative authority’ means a government
authority vested by law with exclusive jurisdiction over the
original tort claim or workers’ compensation claim that was
resolved in a structured settlement agreement.
(7) ‘Structured settlement agreement’ means an agreement,
judgment, stipulation or release embodying the terms of an
arrangement for periodic payment of damages from an obligor or an
annuity issuer for:
(a) Personal injuries or sickness established by settlement or
judgment in resolution of a tort claim; or
(b) Periodic payments in settlement of a workers’ compensation
claim.
(8) ‘Terms of the structured settlement agreement’ includes the
terms of:
(a) A structured settlement agreement;
(b) An annuity contract;
(c) An agreement that provides for a qualified assignment as
defined in section 130 of the Internal Revenue Code, as of
January 1, 2006; and
(d) Any order or other approval of any court, responsible
administrative authority or other government authority that
authorized or approved the structured settlement agreement.
Enrolled Senate Bill 645 (SB 645-A) Page 1
(9) ‘Transfer’ means any sale, assignment, pledge or other
alienation or encumbrance of payment rights made by a payee for
consideration. ‘Transfer’ does not include the creation or
perfection of an unspecified security interest in all of the
payee’s payment rights entered into with an insured depository
institution, or an agent or successor in interests of the insured
depository institution, in the absence of any action to redirect
the payments under the structured settlement agreement to the
insured depository institution or otherwise to enforce a security
interest against the payment rights.
(10) ‘Transfer agreement’ means an agreement providing for a
transfer of payment rights.
(11) ‘Transferee’ means a party acquiring or proposing to
acquire payment rights through a transfer agreement. + }
SECTION 2. { + (1) A payee may transfer payment rights under
sections 1 to 6 of this 2005 Act if:
(a) The payee is domiciled in this state;
(b) The domicile or principal place of business of the obligor
or the annuity issuer is located in this state;
(c) The structured settlement agreement was approved by a court
or responsible administrative authority in this state; or
(d) The structured settlement agreement is expressly governed
by the laws of this state.
(2) Prior to transferring payment rights under sections 1 to 6
of this 2005 Act, the transferee shall file an application for
approval of the transfer in:
(a) The county in which the payee resides;
(b) The county in which the obligor or the annuity issuer
maintains its principal place of business; or
(c) Any court or before any responsible administrative
authority that approved the structured settlement agreement.
(3) Not less than 20 days prior to the scheduled hearing on an
application for approval of a transfer of payment rights, the
transferee shall send notice of the proposed transfer to:
(a) The payee;
(b) Any beneficiary irrevocably designated under the annuity
contract to receive payments following the payee’s death;
(c) The annuity issuer;
(d) The obligor; and
(e) Any other party that has continuing rights or obligations
under the structured settlement agreement that is the subject of
the hearing.
(4) The notice sent under subsection (3) of this section shall
include:
(a) A copy of the transferee’s application.
(b) A copy of the transfer agreement.
(c) A copy of the disclosure statement provided to the payee as
required under section 3 of this 2005 Act.
(d) A listing of each person for whom the payee is legally
obligated to provide support, including the age of each of those
persons.
(e) Notification that any person receiving notice under
subsection (3) of this section is entitled to support, oppose or
otherwise respond to the transferee’s application, either in
person or by counsel, by submitting written comments to the court
or responsible administrative authority or by participating in
the hearing.
(f) 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 application must be filed, which shall not be
Enrolled Senate Bill 645 (SB 645-A) Page 2
less than 15 days after service of the transferee’s notice, in
order to be considered by the court or responsible administrative
authority. + }
SECTION 3. { + Not less than three days prior to the day on
which a payee is scheduled to sign a transfer agreement, a
transferee shall provide the payee with a statement in not less
than 14-point type that sets forth:
(1) The amounts and due dates of the structured settlement
payments to be transferred.
(2) The aggregate amount of the payments to be transferred.
(3) The discounted present value of the payments and the rate
used in calculating the discounted present value. The discounted
present value shall be calculated by using the most recently
published applicable federal rate for determining the present
value of an annuity, as issued by the Internal Revenue Service.
(4) The amount payable to a payee as the result of a transfer.
The amount set forth in this subsection shall be calculated
before any reductions are made for transfer expenses required to
be listed under subsection (5) of this section or any related
disbursements.
(5) An itemized listing of all applicable transfer expenses and
the transferee’s best estimate of the amount of any attorney fees
and disbursements. For the purposes of this subsection, ‘
transfer expenses’:
(a) Includes all expenses of a transfer that are required under
the transfer agreement to be paid by the payee or deducted from
the amount payable to a payee as the result of a transfer.
(b) Does not include attorney fees and related disbursements
payable in connection with the transferee’s application for
approval of the transfer or preexisting obligations of the payee
payable for the payee’s account from the proceeds of a transfer.
(6) The amount calculated by subtracting the aggregate amount
of the actual and estimated transfer expenses required to be
listed under subsection (5) of this section from the amount
identified in subsection (4) of this section.
(7) The amount of any penalties or liquidated damages payable
by the payee in the event of a breach of the transfer agreement
by the payee.
(8) A statement that the payee has the right to cancel the
transfer agreement, without penalty or further obligation, not
later than the third business day after the date the agreement is
signed by the payee. + }
SECTION 4. { + A transfer of payment rights under sections 1
to 6 of this 2005 Act is not effective and an obligor or annuity
issuer is not required to make any payments directly or
indirectly to a transferee unless the transfer has been approved
in advance in a final court order or order of a responsible
administrative authority based on express findings by the court
or authority that:
(1) The transfer is in the best interest of the payee, taking
into account the welfare and support of all persons for whom the
payee is legally obligated to provide support.
(2) The payee has been advised in writing by the transferee to
seek advice from an attorney, certified public accountant,
actuary or other licensed professional adviser regarding the
transfer, and the payee has either received the advice or
knowingly waived advice in writing.
(3) The transfer does not contravene any applicable statute or
order of any court or other government authority. + }
Enrolled Senate Bill 645 (SB 645-A) Page 3
SECTION 5. { + Following a transfer of payment rights under
sections 1 to 6 of this 2005 Act:
(1) The obligor and the annuity issuer shall, as to all parties
except the transferee, be discharged and released from all
liability for the transferred payments.
(2) The transferee shall be liable to the obligor and the
annuity issuer:
(a) If the transfer contravenes the terms of the structured
settlement agreement, for any taxes incurred by the parties as a
consequence of the transfer; and
(b) For any other liabilities or costs, including reasonable
costs and attorney fees, arising from compliance by the parties
with the order of the court or responsible administrative
authority or arising as a consequence of the transferee’s failure
to comply with sections 1 to 6 of this 2005 Act.
(3) An annuity issuer or an obligor may not be required to
divide any periodic payments between the payee and any transferee
or assignee or between two or more transferees or assignees.
(4) Any further transfer of payment rights by the payee may be
made only after compliance with all of the requirements of
sections 1 to 6 of this 2005 Act. + }
SECTION 6. { + (1) The provisions of sections 1 to 6 of this
2005 Act may not be waived by any payee.
(2) A transfer agreement entered into on or after the effective
date of this 2005 Act by a payee who resides in this state shall
provide that disputes under the transfer agreement, including any
claim that the payee has breached the agreement, shall be
determined under the laws of this state. A transfer agreement may
not authorize the transferee or any other party to confess
judgment or consent to entry to judgment against the payee.
(3) A transfer of payment rights may not extend to any payments
that are life contingent unless, prior to the date on which the
payee signs the transfer agreement, the transferee has
established and has agreed to maintain procedures reasonably
satisfactory to the annuity issuer and the obligor for:
(a) Periodically confirming the payee’s survival.
(b) Giving the annuity issuer and the obligor prompt written
notice in the event of the payee’s death.
(4) A payee who proposes to make a transfer of payment rights
does not incur any penalty, forfeit any application fee or other
payment, or otherwise incur any liability to the proposed
transferee or a assignee based on any failure of the transfer to
satisfy the conditions of sections 1 to 6 of this 2005 Act.
(5) Nothing in sections 1 to 6 of this 2005 Act shall be
construed to authorize a transfer of payment rights in
contravention of any law or to imply that any transfer under a
transfer agreement entered into prior to the effective date of
this 2005 Act is valid or invalid.
(6) Compliance with the requirements set forth in section 3 of
this 2005 Act and fulfillment of the conditions set forth in
section 2 of this 2005 Act shall be solely the responsibility of
the transferee in any transfer of payment rights, and neither the
obligor nor the annuity issuer shall bear any responsibility for,
or any liability arising from, noncompliance with the
requirements or failure to fulfill the conditions. + }
SECTION 7. { + Sections 1 to 6 of this 2005 Act apply to
transfer agreements entered into on or after the effective date
of this 2005 Act. + }
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Enrolled Senate Bill 645 (SB 645-A)
