Section 09.60.200. Conditions to transfers of structured settlement payment rights and structured settlement agreements.

   (a) A transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee of structured settlement payment rights unless the transfer has been approved by a superior court based on the court's written express findings that
        (1) the structured settlement arose from an action filed in Alaska or that could have been filed in Alaska, or the payee of the structured settlement is domiciled in Alaska;
        (2) the transfer complies with the requirements of AS 09.60.200 - 09.60.230, other applicable state and federal law, and the orders of any court;
        (3) not less than 10 days before the date on which the payee first incurred an obligation with respect to the transfer, the payee has received by certified mail, return receipt requested, or other means that provide a comparable record of delivery, a disclosure statement in bold type, no smaller than 14 points, specifying
             (A) the amounts and due dates of the structured settlement payments to be transferred;
             (B) the aggregate amount of the payments;
             (C) the discounted present value of the payments, together with the discount rate used in determining the discounted present value;
             (D) the gross amount payable to the payee in exchange for the payments;
             (E) an itemized listing of all broker's commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, notary fees, and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee;
             (F) the net amount payable to the payee after deduction of all commissions, fees, costs, expenses, and charges described in (E) of this paragraph;
             (G) the quotient, expressed as a percentage, obtained by dividing the net payment amount by the discounted present value of the payments; and
             (H) the amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee;
        (4) the payee has established that the transfer is in the best interests of the payee and the payee's dependents;
        (5) the payee has received independent professional advice regarding the legal, tax, and financial implications of the transfer;
        (6) the transferee has given written notice of the transferee's name, address, and taxpayer identification number to the annuity issuer and the structured settlement obligor and has filed a copy of the notice with the court; and
        (7) the transfer agreement provides that any disputes between the parties will be governed, interpreted, construed, and enforced in accordance with the laws of this state and that the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement; the transfer agreement must also provide that the parties agree to the jurisdiction of any court of competent jurisdiction located in this state.
   (b) If the transfer would contravene the terms of the structured settlement, upon the filing of a written objection by any interested party and after considering the objection and any response to it, the court may grant, deny, or impose conditions upon the proposed transfer as the court considers just and proper under the facts and circumstances in accordance with established principles of law. Any order approving a transfer must require that the transferee indemnify the annuity issuer and the structured settlement obligor for any liability including reasonable costs and attorney fees arising from compliance by the issuer or obligor with the order of the court.
   (c) A provision in a transfer agreement giving a transferee power to confess judgment against a payee is unenforceable to the extent the amount of the judgment would exceed the amount paid by the transferee to the payee, less any payments received from the structured settlement obligor or the payee.

Authorities

9.60.200; 9.60.210; 9.60.220; 9.60.230

Notes

References

AS 9.60.200 .200">Sec. 09.60.200. Conditions to transfers of structured settlement payment rights and structured settlement agreements.
AS 9.60.210 .210">Sec. 09.60.210. Jurisdiction; procedure for approval of transfers.
AS 9.60.220 .220">Sec. 09.60.220. No waiver and no penalty.
AS 9.60.230 .230">Sec. 09.60.230. Definitions.

History

(Sec. 1 ch 21 SLA 2003)