Structured Settlement Protection Act; amends Act, obligor and issuer shall rely on court order. (SB638)

Introduced By

Sen. Louise Lucas (D-Portsmouth)

Description

Structured settlements. Amends the Structured Settlement Protection Act (the Act) to provide that the structured settlement obligor and the annuity issuer shall rely on a court order approving a transfer of structured settlement payment rights in redirecting periodic payments to an assignee or transferee in accordance with the order. The measure provides that upon entry of such an order the structured settlement obligor and the annuity issuer shall be discharged and released from any and all liability for the transferred redirected payments as to all parties except the transferee or an assignee designated by the transferee. The discharge and release of the structured settlement obligor and the annuity issuer shall not be affected by the failure of any party to the transfer to comply with the Act or with the court order approving the transfer. The measure also provides that an application for approval of a structured settlement transfer shall be brought in the circuit court of the county in which the payee is domiciled at the time the transfer agreement was signed or, if the payee is not domiciled in Virginia, may be brought in the court in Virginia that approved the structured settlement agreement. The measure requires the hearing to be held within 60 days from the date of filing of the application unless additional time is specifically requested. The payee is required to appear in person at the hearing unless the court finds that good cause exists to excuse such an appearance, in which event the payee is required to provide an affidavit setting forth the reasons for his unavailability, together with the reasons he asserts in support of his best interests for approval of the transfer. The measure also provides that a court may hear and approve an application for transfer of payment rights under a structured settlement despite the existence of terms in the underlying structured settlement agreement that purports to restrict or preclude the payee's right or power to sell, assign, or encumber structured settlement payment rights; however, interested parties are precluded from waiving their rights under those terms absent a specific showing that their rights or interests would be prejudiced by the transfer. An application for approval of a transfer is required to include a summary of information regarding prior transfers and notice of the hearing. The period in which responses to the application must be filed with the court is changed from not less than 15 days after service of the notice to not less than five days prior to the hearing. The definition of a responsible administrative authority is amended to remove the requirement that the authority be a governmental entity. The measure deletes a provision that authorizes the court to refer an application for approval of a transfer of structured settlement payment rights to a commissioner of accounts for a report and recommendation. The measure requires the disclosure statement to set forth the amounts or reasonable value of any advance or inducement paid by the transferee to the payee as an inducement for the transfer. The measure provides that the transferee shall not have the right to seek reimbursement, setoff, or collection against a payee for any inducement received by a payee unless the advance or inducement is specifically identified in the disclosure, with the value of such inducement clearly stated, notwithstanding any separate promises to repay such inducement that have been otherwise agreed to, whether orally or in writing, by and between the payee and transferee or by any individual or agent acting at the behest of the transferee. The measure specifies that a payee's dependents include all persons for whom the payee is legally obligated to provide spousal support or child support. Read the Bill »

Status

01/25/2016: Incorporated into Another Bill

History