Missouri Laws 407.1060 – Definitions
As used in sections 407.1060 to 407.1068, the following terms mean:
(1) “Annuity issuer”, an insurer that has issued an annuity contract to be used to fund periodic payments pursuant to a structured settlement;
Terms Used In Missouri Laws 407.1060
- 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.
- following: when used by way of reference to any section of the statutes, mean the section next preceding or next following that in which the reference is made, unless some other section is expressly designated in the reference. See Missouri Laws 1.020
- 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.
- person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Missouri Laws 1.020
- 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 any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
- 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.
- United States: includes such district and territories. See Missouri Laws 1.020
(2) “Code”, the United States Internal Revenue Code, United States Code Title 26, as amended from time to time;
(3) “Discounted present value”, 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) “Disinterested counsel”, legal counsel that has no business relationship with any transferee of structured settlement payment rights, will not receive any compensation directly or indirectly from any such transferee in connection with representing the payee, and whose compensation for representing the payee will not be affected by whether the transfer occurs or does not occur;
(5) “Interested parties”, with respect to any structured settlement, the payee, any named beneficiary designated in the annuity contract or structured settlement to receive payments following the payee’s death, or, if the named beneficiary is a minor, the named beneficiary’s parent or guardian, the annuity issuer, and the structured settlement obligor;
(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) “Qualified assignment agreement”, an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code, 26 U.S.C. § 130, as amended from time to time;
(8) “Settled claim”, the original tort claim resolved by a structured settlement;
(9) “Structured settlement”, an arrangement established by:
(a) a. Judgment or agreement in resolution of a tort claim providing for the periodic payment of damages excludable from the gross income of the recipient pursuant to Section 104(a)(2) of the Code; or
b. Agreement for the periodic payment of compensation pursuant to any workers’ compensation act that is excludable from the gross income of the recipient pursuant to Section 104(a)(1) of the Code and which may be assigned 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 party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability 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 lump sum payments pursuant to a structured settlement, whether from the settlement obligor or the annuity issuer, where:
(a) The payee is domiciled in this state; or
(b) The structured settlement was approved by a court of this state;
(12) “Transfer”, any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration;
(13) “Transfer agreement”, 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.