Oklahoma § 12-3239 - Definitions

§ 12-3239. Definitions

As used in the Structured Settlement Protection Act of 2001:

1. “Annuity issuer” means an insurer that has issued a contract

to fund periodic payments under a structured settlement;

2. “Dependents” include a payee’s spouse and minor children and

all other persons for whom the payee is legally obligated to provide

support, including alimony;

3. “Discounted present value” means the present value of future

payments determined by discounting the payments to the present using

the most recently published applicable federal rate for determining

the present value of an annuity, as issued by the United States

Internal Revenue Service;

4. “Gross advance amount” means the sum payable to the payee or

for the payee’s account as consideration for a transfer of

structured settlement payment rights before any reductions for

transfer expenses or other deductions to be made from the

consideration;

5. “Independent professional advice” means advice of an

attorney, certified public accountant, actuary or other licensed

professional adviser;

6. “Interested parties” means, with respect to any structured

settlement, the payee, any beneficiary irrevocably designated under

the annuity contract to receive payments following the payee’s

death, the annuity issuer, the structured settlement obligor, and

any other party that has continuing rights or obligations under the

structured settlement;

7. “Net advance amount” means the gross advance amount less the

aggregate amount of the actual and estimated transfer expenses

required to be disclosed under paragraph 5 of Section 3 of this act;

8. “Payee” means an individual who is receiving tax-free

payments under a structured settlement and proposes to make a

transfer of the payment rights;

9. “Periodic payments” includes both recurring payments and

scheduled future lump sum payments;

10. “Qualified assignment agreement” means an agreement

providing for a qualified assignment within the meaning of section

130 of the United States Internal Revenue Code, United States Code

Title 26, as amended from time to time;

Oklahoma Statutes - Title 12. Civil Procedure

11. “Responsible administrative authority” means, with respect

to a structured settlement, any government authority vested by law

with exclusive jurisdiction over the settled claim resolved by the

structured settlement;

12. “Settled claim” means the original tort claim or workers’

compensation claim resolved by a structured settlement;

13. “Structured settlement” means an arrangement for periodic

payment of damages for personal injuries or sickness established by

settlement or judgment in resolution of a tort claim or for periodic

payments in settlement of a workers’ compensation claim;

14. “Structured settlement agreement” means the agreement,

judgment, stipulation, or release embodying the terms of a

structured settlement;

15. “Structured settlement obligor” means, with respect to any

structured settlement, the party that has the continuing obligation

to make periodic payments to the payee under a structured settlement

agreement or a qualified assignment agreement;

16. “Structured settlement payment rights” means rights to

receive periodic payments under a structured settlement, whether

from the structured settlement obligor or the annuity issuer, where:

a.

the payee is domiciled in, or the domicile or

principal place of business of the structured

settlement obligor or the annuity issuer is located in

this state,

b.

the structured settlement agreement was approved by a

court or responsible administrative authority in this

state, or

c.

the structured settlement agreement is expressly

governed by the laws of this state;

17. “Terms of the structured settlement” include, with respect

to any structured settlement, the terms of the structured settlement

agreement, the annuity contract, any qualified assignment agreement

and any order or other approval of any court or responsible

administrative authority or other government authority that

authorized or approved such structured settlement;

18. “Transfer” means any sale, assignment, pledge,

hypothecation or other alienation or encumbrance of structured

settlement payment rights made by a payee for consideration;

provided that the term “transfer” does not include the creation or

perfection of a security interest in structured settlement payment

rights under a blanket security agreement entered into with an

insured depository institution, in the absence of any action to

redirect the structured settlement payments to the insured

depository institution, or an agent or successor in interest

thereof, or otherwise to enforce the blanket security interest

against structured settlement payment rights;

Oklahoma Statutes - Title 12. Civil Procedure

19. “Transfer agreement” means the agreement providing for a

transfer of structured settlement payment rights;

20. “Transfer expenses” means all expenses of a transfer that

are required under the transfer agreement to be paid by the payee or

deducted from the gross advance amount, including, without

limitation, court filing fees, finders’ fees, commissions, and other

payments to a broker or other intermediary; “transfer expenses” do

not include preexisting obligations of the payee payable for the

payee’s account from the proceeds of a transfer; and

21. “Transferee” means a party acquiring or proposing to

acquire structured settlement payment rights through a transfer;

Added by Laws 2001, c. 70, § 2, eff. Nov. 1, 2001.