Structured Settlement Protection Act

The Structured Settlement Protection Acts of Individual States

 Alabama: The seller must receive detailed financial and legal disclosures before transferring payment rights.

Alaska: The purchaser must disclose key terms to seller. The seller must also receive independent professional advice regarding implications of the transfer.

 Arizona: The seller must receive written advice to seek independent professional advice. California: The purchaser must advise sellers of their right to seek legal counsel in connection with transfer petition and to advise that purchaser will pay fees of seller’s counsel up to $1,500. Copy of the transfer agreement must be filed with the California Office of the Attorney General. Cannot transfer structured settlements related to workers compensation benefits.

 Colorado: Sellers must receive advice in writing to seek independent professional advice. Cannot transfer structured settlements related to workers compensation benefits. Connecticut: A seller must receive advice in writing to seek independent professional advice.

Delaware: Sellers must receive independent financial advice.

Florida: Sellers must receive independent financial advice. Cannot transfer structured settlements related to workers compensation benefits.

Georgia: Sellers have 21 days to cancel their sale. Hawaii: Buyers must disclose key terms to payee. Idaho: The purchaser must advise sellers to seek professional advice. Cannot transfer structured settlements related to workers compensation benefits. Illinois: The Purchaser must advise seller to seek professional advice Indiana: No transfer of structured settlements related to workers compensation benefits is permitted. Kansas: No transfer of structured settlements related to workers compensation benefits is permitted. Kentucky: Disclosure of key terms to consumer is required. Cannot transfer structured settlements related to workers compensation benefits. Maine: A seller is required to receive independent professional advice. Interested parties must consent to transfer if settlement documents prevent assignment of payments. Maryland: A seller must receive independent professional advice. The transfer of structured settlements related to workers compensation benefits is forbidden. Massachusetts: Sellers must receive independent professional advice. Michigan: Sellers must receive independent professional advice. Interested parties must consent to transfer if settlement documents prevent assignment of payments. Discount or interest cannot exceed 25 percent per year, and the transfer structured settlements related to workers compensation benefits is not permitted. Minnesota: Sellers must receive independent professional advice, and the transfer of settlements related to workers compensation benefits is forbidden. Mississippi: Purchasers must advise a seller in writing to seek professional advice. Missouri: The court must find that payments made to seller equal “the fair market value of the structured settlement rights being transferred.” Cannot transfer structured settlements related to workers compensation benefits. Montana: A seller cannot transfer structured settlements related to workers compensation benefits. Nebraska: A seller cannot transfer structured settlements related to workers compensation benefits. Buyers must notify sellers of their right have professional advice. Discount or finance charges cannot exceed maximum interest rate for a consumer loan. New Jersey: Sellers must be notified of right to professional advice.

 New York: Sellers must be notified of right to professional advice. Transfer agreement may not require seller to pay the purchaser’s attorneys’ fees or costs if a transfer is not completed, or any federal tax liability (other than the payee’s own tax liability). Cannot transfer structured settlements related to workers compensation benefits.

 North Carolina: Sellers must receive professional advice. Discount or interest rates cannot exceed prime plus 5 percent, and fees cannot exceed 2 percent of net amount payable to payee. Sellers cannot transfer structured settlements related to workers compensation benefits.

Ohio: Sellers must receive professional advice and cannot transfer structured settlements related to workers compensation benefits. Oklahoma: Purchasers must advise a seller in writing to seek professional advice. Pennsylvania: Purchasers must advise a seller to seek professional advice or sign waiver of advice. Rhode Island: Purchasers must advise a seller to seek professional advice. South Carolina: The purchaser must advise a seller in writing to seek professional advice. Sellers cannot transfer structured settlements related to workers compensation benefits. South Dakota: Purchasers must advise seller to seek professional advice. Tennessee: Purchasers must advise seller to seek professional advice. Cannot transfer structured settlements related to workers compensation benefits. Texas: A purchaser must advise sellers in writing to seek professional advice. Utah: Purchasers must advise sellers in writing to seek professional advice. Virginia: A purchaser must advise a seller in writing to seek professional advice. Washington: A purchaser must advise a seller in writing to seek professional advice.