Definitions
This law defines words used in Missouri rules about 'structured settlements.' A structured settlement is when someone wins a lawsuit or workers' comp claim and instead of getting one big payment, they get smaller payments over time. These definitions explain who the different people involved are — like the person receiving the payments, the company paying them, and anyone who might buy those payment rights from the receiver.
407.1060. Definitions. — As used in sections 407.1060 to 407.1068, the following terms mean:
(1) "", an that has issued an to be used to a ;
(2) "Code", the United States Internal Revenue Code, United States Code 26, as amended from time to time;
(3) "", the fair of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an , as issued by the United States Internal Revenue ;
(4) "", legal that has no business relationship with any of , will not receive any directly or indirectly from any such transferee in connection with representing the , and whose compensation for representing the payee will not be affected by whether the occurs or does not occur;
(5) "", with respect to any structured settlement, the payee, any named in the annuity contract or structured settlement to receive payments following the payee's death, or, if the named beneficiary is a , the named beneficiary's parent or , the annuity issuer, and the ;
(6) "Payee", an individual who is receiving tax-free damage payments pursuant to a structured settlement and who wants to make a transfer of payment rights pursuant to the structured settlement agreement;
(7) "", an agreement providing for a qualified within the meaning of Section 130 of the Internal Revenue Code, 26 U.S.C. Sec. 130, as amended from time to time;
(8) "", the original resolved by a structured settlement;
(9) "Structured settlement", an arrangement established by:
(a) a. or agreement in of a tort claim providing for the of excludable from the of the recipient pursuant to Section 104(a)(2) of the Code; or
b. Agreement for the periodic payment of compensation pursuant to any act that is excludable from the gross income of the recipient pursuant to Section 104(a)(1) of the Code and which may be pursuant to state law; and
(b) Where the periodic payments are:
a. Of the character described in subparagraphs (A) and (B) of Section 130(c)(2) of the Code; and
b. Payable by a person who is a to the suit or agreement or to the or by a person who has assumed the for such periodic payments pursuant to a qualified assignment in accordance with Section 130 of the Code;
(10) "Structured settlement obligor", with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee pursuant to a structured settlement agreement or a qualified assignment agreement;
(11) "Structured settlement payment rights", rights to receive periodic payments, including payments pursuant to a structured settlement, whether from the settlement or the annuity issuer, where:
(a) The payee is in this state; or
(b) The structured settlement was approved by a court of this state;
(12) "Transfer", any sale, assignment, , , or other form of or made for ;
(13) "", the agreement providing for transfer of structured settlement payment rights from a payee to a transferee;
(14) "Transferee", a party acquiring or proposing to acquire structured settlement payment rights through a transfer from a payee.
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Source & history notes
(L. 1999 S.B. 1, et al. § 3)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.