The completion of a structured settlement requires contracted agreement from six major parties: the settlement insurer and the settlement claimant. The insurer can be an insurance company, a qualified settlement fund trustee, or even an individual defendant (in rare case).
In the beginning of a claiming technique, the insurer have to promises to pay future periodic payments to the claimant with all or a portion of the negotiated personal injury damages in exchange for a release by a contractual agreement.
To finalized, the insurer will need to make an assignment of its obligation to pay future periodic payments to a third-party. The assignee assumes this obligation. The plaintiff agrees to the assignment in the release and agrees to look to the assignee as the obligor for the promised future periodic payments.
If the offer is agreed by the claimant, he or he will release the claim in exchange for the promise by the insurer by signing off the contractual agreement. The settlement can consists of one or more future benefit payments to claimant in addition to immediate cash items (for attorney fees, liens).
The assignee receives funds from the Defendant/Insurer or QSF Trustee and uses these funds to purchase an annuity contract in an amount sufficient to fund the periodic payment obligation it's assumed. The assignee owns the annuity contract and may either make payments directly to the Plaintiff/Claimant or may direct that the annuity issuer make the payments.
1 comment:
Thanks for post this article, its very useful article. the Claimant will know what should they do with their structured settlement if their plan wanna to sell and claims it.
Sell Structured Settlement
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