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Legal
Structured Settlements
A Structured Settlement is a method of paying damages
to a plaintiff (the injured party) over a period of time when a lawsuit
has been settled. A structured settlement most commonly results from
a personal injury lawsuit involving:
• Product liability
• Motor vehicle collisions
• Wrongful death
• Medical malpractice
Structured settlement payments can be inflexible and often fail their
intended purposes, particularly in cases when individuals receiving
structured payments are faced with a financial emergency. Liquidating
a portion of a structured settlement is often the most beneficial option,
or sometimes the only solution to a critical financial need.
When the outcome of a lawsuit results in a settlement, the damages awarded
are funded in the form of an annuity contract issued by an insurance
company. This settlement is structured as follows:
• A company (typically an insurance company) is selected by the
defendant to structure the settlement.
• The structured settlement company purchases an annuity contract
and sends the payments from the annuity to the plaintiff. The payments
are fixed in time and amount.
• The structured settlement company retains ownership of the annuity
even though the plaintiff is the beneficiary.
Who
Can Benefit From the Sale of a Structured Settlement?
Each year about 15,000 new structured settlement transactions are originated
in the United States. This ever-growing number points to an estimated
cash flow of $25 billion. Plaintiffs receiving a structured settlement
can benefit from the sale of their stream of payments by receiving a
lump-sum of cash.
Assignability of structured settlements is regulated by state. To be
able to help you we would need to know the state you live in, the insurance
company and the amount of the payments. Contact
us for further information and assistance in this area.
Contact us now for a free consultation!
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