Arizona Laws 12-2904. Waiver; penalties
A. The provisions of this chapter shall not be waived.
Terms Used In Arizona Laws 12-2904
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Annuity issuer: means an insurer that has issued a contract that is used to fund periodic payments under a structured settlement. See Arizona Laws 12-2901
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Payee: means an individual who receives tax-free damage payments under a structured settlement and who proposes to make a transfer of payment rights under the structured settlement. See Arizona Laws 12-2901
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Structured settlement: means an arrangement for periodic payment of damages for personal injuries or sickness that is established by settlement or judgment in resolution of a tort claim or for periodic payments in settlement of a workers' compensation claim. See Arizona Laws 12-2901
- Structured settlement obligor: means , with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement. See Arizona Laws 12-2901
- Structured settlement payment rights: means the right to receive periodic payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if any of the following apply:
(a) The payee, the structured settlement obligor, the annuity issuer or any other interested party is domiciled in this state. See Arizona Laws 12-2901
- Transfer: means any sale, assignment, pledge, hypothecation or other form of alienation or encumbrance of structured settlement payment rights. See Arizona Laws 12-2901
- Transfer agreement: means the agreement that provides for transfer of structured settlement payment rights from a payee to a transferee. See Arizona Laws 12-2901
- Transferee: means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. See Arizona Laws 12-2901
B. A payee who proposes to make a transfer of structured settlement payment rights shall not inure any penalty, forfeit any application fee or other payment or otherwise incur any liability to the proposed transferee based on any failure of the transfer to satisfy the conditions specified in section 12-2902.
C. Any transfer agreement entered into on or after the effective date of this section by a payee who resides in this state shall provide that disputes under the transfer agreement, including any claim that the payee has breached the agreement, shall be determined in and under the laws of this state. A transfer agreement shall not authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee.
D. A transfer of structured settlement payment rights shall not extend to any payments that are life contingent unless, before the date on which the payee signs the transfer agreement, the transferee has established and has agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for both of the following:
1. Periodically confirming the payee’s survival.
2. Giving the annuity issuer and the structured settlement obligor prompt written notice if the payee dies.
E. Compliance with the requirements and fulfillment of the conditions set forth in this chapter is the sole responsibility of the transferee in any transfer of structured settlement payment rights, and the structured settlement obligor or the annuity issuer is not responsible for, or any liability arising from, noncompliance with the requirements or failure to fulfill the requirements of this chapter.