Iowa Code 682.2 – Definitions
Terms Used In Iowa Code 682.2
- 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.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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.
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
As used in this chapter, unless the context otherwise requires:
1. “”Annuity issuer”” means an issuer that has issued an insurance contract used to fund periodic payments under a structured settlement.
2. “”Dependents”” means a payee’s spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony.
3. “”Discounted present value”” means the fair present value 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 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 such consideration.
5. “”Independent professional advice”” means advice of an attorney, certified public accountant, actuary, or other licensed professional advisor.
6. “”Interested parties”” means, with respect to a structured settlement, the payee, a 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 § 682.3, subsection 5.
8. “”Payee”” means an individual who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights.
9. “”Periodic payments”” means 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 Internal Revenue Code.
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 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 a structured settlement, the party that has the continuing periodic payment obligation 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, if any of the following exists:
a. One of the following is true:
(1) The payee is domiciled in this state.
(2) The domicile or principal place of business of a 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.
c. The structured settlement agreement is expressly governed by the laws of this state.
17. “”Terms of the structured settlement”” means, with respect to a structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified
§682.2, STRUCTURED SETTLEMENT PROTECTION 2
assignment agreement, and any order or approval of any court or responsible administrative authority or other government authority authorizing or approving the 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. “”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 such insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce such blanket security interest against the structured settlement payment rights.
19. “”Transfer agreement”” means the agreement providing for transfer of structured
settlement payment rights.
20. “”Transferee”” means a party acquiring or proposing to acquire structured settlement payment rights through a transfer.
21. “”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, attorney fees, escrow fees, lien recordation fees, judgment and lien search fees, finders’ fees, commissions, and other payments to a broker or other intermediary. “”Transfer expenses”” does not include preexisting obligations of the payee payable for the payee’s account from the proceeds of a transfer.
2001 Acts, ch 85, §2, 8
Referred to in §633.555