Source: http://www.structured-settlements-guide.com/sell-structured-settlement-california/
Timestamp: 2019-01-16 11:10:49
Document Index: 209680664

Matched Legal Cases: ['§ 10134', '§ 10134', '§ 10135', '§ 10136', '§ 10137', '§ 10138', '§ 10139', '§ 10139', '§ 10139', '§ 10139', '§ 10139', '§ 10139']

Sell Structured Settlement - California | Structured Settlements Guide
Sell Structured Settlement – California
If you live in California and are receiving future payments from a structured settlement but would like to get a lump sum payout – this website will provide you with more information and you can get a free quote and find out how much your payments are worth.
Below are the state laws for selling your future payments – once you have a chance to read them and have questions – call one of our specialists for more information and find out how much your payments are worth in cash today.
CA Insurance Code §§ 10134-10139.5
(See www.sen.ca.gov/leginfo/bill-6-dec-1998/current/sb/from0400/sb0491/t990708.txt )
Article 2.3. Transfers Of Structured Settlement Payment Rights
§ 10134. Definitions
(i) “Qualified assignment agreement” means an agreement providing for a qualified assignment within the meaning of Section 130 of Title 26 of the United States Code , as amended from time to time.
§ 10135. Application of article
§ 10136. Required disclosures; notice of proposed transfer
No transfer of structured settlement payment rights, either directly or indirectly, shall be effective by a payee domiciled in this state, or by a payee entitled to receive payments under a structured settlement funded by an insurance contract issued by an insurer domiciled in this state or owned by an insurer or corporation domiciled in this state, and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to a transferee, unless all of the following subdivisions are satisfied:
(a) Ten or more days prior to the effective date of a transfer agreement, the transferee provides the payee with a separate written disclosure statement, in at least 14-point boldface type, disclosing all of the following:
(1) The effective date of the transfer.
(3) The aggregate amount of the structured settlement payments to be transferred.
(4) The gross amount of all expenses, if any, to be deducted from the amount to be paid to the payee in exchange for the payments to be transferred.
(5) The amount payable to the payee, net of all expenses, in exchange for the payments to be transferred.
(6) The discounted present value of all structured settlement payments to be transferred and the discount rate used in determining that discounted present value.
(7) The effective equivalent interest rate, which shall be disclosed in the following statement:
“YOU WILL BE PAYING THE EQUIVALENT TO AN INTEREST RATE OF __________ % PER YEAR.
Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are transferring to us, if the transferred structured settlement payments were installment payments on a loan, with each payment applied first to accrued unpaid interest and then to principal, it would be as if you were paying interest to us of __________ % per year, assuming funding on the effective date of transfer. ”
(8) The quotient (expressed as a percentage) obtained by dividing the net payment amount by the discounted present value of the payments.
(9) A statement that the payee should obtain independent professional advice regarding any federal and state income tax consequences arising from the proposed transfer, and that the transferee may not refer the payee to any specific adviser for that purpose.
(10) A statement of the payee’s irrevocable and non-waivable right of rescission pursuant to paragraph (2) of subdivision (b).
(11) The following statement in capital letters: “IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED AS TO THE NATURE OF THE OBLIGATIONS YOU ASSUMED UPON ENTERING INTO THIS AGREEMENT, YOU SHOULD REPORT THOSE CIRCUMSTANCES TO YOUR LOCAL DISTRICT ATTORNEY OR THE OFFICE OF THE ATTORNEY GENERAL.”
(12) If court approval of the transfer agreement is required, all of the following shall apply:
(A) The effective date of the transfer agreement shall be deemed to be the date that the agreement was signed by the payee.
(B) The payee shall be advised that payment to the payee pursuant to the transfer agreement is contingent upon court approval of the transfer agreement.
(C) The payee shall be advised that payment to the payee pursuant to the transfer agreement will be delayed up to 30 days or more in order for the court to review and approve the transfer agreement.
No contract for the transfer of structured settlement payment rights shall be valid unless the seller has separately acknowledged that he or she has read all of the disclosures required by this subdivision.
(b) (1) The transferee provides written notice of the proposed transfer to all other interested parties 10 or more days prior to the date specified in the transfer agreement as the date on which the transfer agreement first becomes binding upon the payee and 60 or more days prior to the date on which the first payment is due under a schedule established by the structured settlement agreement.
Notice shall not be required by this paragraph if court approval of the transfer is required and notice is given pursuant to paragraph (6) of subdivision (c) of Section 10139.5.
(2) At any time prior to the date on which the transfer agreement first becomes binding upon the payee, the payee may cancel the transfer agreement without cost or further obligation, by providing written notice of cancellation to the transferee.
(3) The notice to interested parties shall include the effective date of the transfer and identify the structured settlement payment rights being transferred and the due dates of those payments.
(4) Any notice required by this subdivision shall be deemed to have been given if addressed to the recipient’s last known address and deposited, first-class postage prepaid, in the United States mail not less than five calendar days prior to the date on which the notice is required to be provided.
(c) The contract for transferring the structured settlement payment rights does not violate the provisions of Section 10138.
Stats.2001, c. 624 (A.B.268), in subd. (a), in the introductory paragraph, substituted “separate written disclosure statement, in at least 14-point boldface type,” for “written disclosure statement”; inserted subd. (a) (1); re-designated former subds. (a) (1) through (a)(5) as subds. (a) (2) through (a)(6), respectively; inserted subd. (a) (7); re-designated former subd. (a) (6) as subd. (a) (8); rewrote former subd. (a) (7); re-designated former subd. (a) (7) as subd. (a) (9); inserted subd. (a) (10); rewrote former subd. (a) (8); re-designated former subd. (a) (8) as subd. (a) (11); inserted subd. (a) (12); in subd. (a), in the last paragraph, substituted “all of the disclosures” for “the language”; and rewrote subd. (b). Prior to amendment, former subds. (a) (7) and (a)(8) and subd. (b) had read:
“(a) (7) A statement that the payee should consult with their own counsel, accountant, or financial advisor regarding any federal and state income tax consequences arising from the proposed transfer.
(8) “A statement that ‘THE PROVISIONS OF THIS CONTRACT ARE GOVERNED BY CALIFORNIA’S UNFAIR PRACTICES ACT, BUSINESS AND PROFESSIONS CODE SECTION 17200 . IF YOU BELIEVE YOU WERE TREATED UNFAIRLY OR WERE MISLED AS TO THE NATURE OF THE OBLIGATIONS YOU ASSUMED UPON ENTERING INTO THIS AGREEMENT, YOU MAY CALL YOUR LOCAL DISTRICT ATTORNEY OR THE OFFICE OF THE ATTORNEY GENERAL FOR ASSISTANCE.
“No contract for the transfer of structured settlement payment rights shall be valid unless the seller has separately acknowledged that he or she has read the language required by this subdivision.”
“(b) The transferee provides written notice of the proposed transfer to all other interested parties 10 or more days prior to the date specified in the transfer agreement as the date on which the transfer agreement first becomes binding upon the payee and 60 or more days prior to the date on which the first payment is due under a schedule established by the structured settlement agreement. At any time prior to the date on which the transfer agreement first becomes binding upon the payee, the payee may cancel the transfer agreement without cost or further obligation, by providing written notice of cancellation to the transferee.”
§ 10137. Required conditions
A transfer of structured settlement payment rights is void unless all of the following conditions are met:
(b) The transfer complies with the requirements of this article and will not contravene other applicable law.
(c) Notice is given in compliance with subdivision (b) of Section 10136 or, when applicable, court approval of the transfer is required and notice is given pursuant to paragraph (6) of subdivision (c) of Section 10139.5.
§ 10138. Prohibited provisions; waiver
(a) A transfer agreement, as defined in subdivision (o) of Section 10134, shall not include any provision described in the paragraphs below. Any inclusion of a prohibited provision, with respect to a seller who is a California resident, shall make the contract void and unenforceable.
(8) Any provision providing for brokerage fees incurred in the contract to be deducted from the purchase price disclosed pursuant to paragraph (5) of subdivision (a) of Section 10136.
§ 10139. Filing of documents with attorney general; fee
(a) At the time notice is provided to interested parties pursuant to subdivision (b) of Section 10136, or subdivision (c) of Section 10137, or, when applicable, at the time of filing a petition pursuant to paragraph (5) of subdivision (c) of Section 10139.5 for court approval when court approval of the transfer agreement is required, the transferee shall file with the Attorney General a copy of the transferee’s petition for approval, a copy of the written disclosure statement required by subdivision (a) of Section 10136, a copy of the transfer agreement as defined in subdivision (o) of Section 10134, a copy of the annuity contract, a copy of any qualified assignment agreement, a copy of the underlying structured settlement agreement, a copy of any order or approval of any court or responsible administrative authority authorizing or approving the structured settlement, a copy and proof of notice to the interested parties, and a verified statement from the transferee stating that all of the conditions set forth in Sections 10136, 10137, and 10138 have been met.
Stats.2001, c. 624 (A.B.268) rewrote this section, which had read:
“(a) At the time notice is provided to interested parties pursuant to subdivision (b) of Section 10136, or subdivision (c) of Section 10137, the transferee shall file with the Attorney General a copy of the transfer agreement, a copy of the written disclosure statement required by subdivision (a) of Section 10136, proof of notice to the interested parties, and a verified statement from the transferee stating that all of the conditions set forth in Sections 10136, 10137, and 10138 have been met. The Attorney General may review any transfer agreement filed pursuant to this section in order to ensure that it meets the requirements of this article.
“(b) The Attorney General may charge a reasonable fee for the filing of the transfer agreement as provided in this section. The fee shall be paid by the transferee.”
10139.1. Subsequent transfers
§ 10139.2. Mailing of notice
§ 10139.3. Waiver; transferee’s responsibility; prohibited penalties; tax liability; division of payments
(a) None of the provisions of this article may be waived.
§ 10139.4. Unfair business practices
§ 10139.5. Court approval of transfers; filing of court orders; report
(a) This section shall become operative only upon enactment into law of amendments to the Federal Internal Revenue Code to impose an excise tax on a transfer of structured settlement payment rights if the transfer is not approved by a court.
(a) This section shall remain in effect only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date.
(b) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that:
(3) The transferee has provided the payee with a disclosure form consistent with Section 10136 and the transfer agreement complies with Section 10138.
(c) Following a transfer of structured settlement payment rights under this article:
(B) Any other liabilities or costs, including reasonable costs and attorneys’ fees, arising from compliance by those parties with the order of the court or arising as a consequence of the transferee’s failure to comply with this article.
(5) An application under this article for approval of a transfer of structured settlement payment rights shall be made by the transferee and brought in the county in which the payee resides if the payee is a resident of California. If the payee is not a resident of California, the application for approval of a transfer of structured settlement payment rights shall be made by the transferee and may be brought as follows:
(A) In the county in which the payee resides.
(B) In the county in which the structured settlement obligor or the annuity issuer maintains its principal place of business.
(C) In any court that approved the structured settlement agreement.
(6) Not less than 20 days prior to the scheduled hearing on any application for approval of a transfer of structured settlement payment rights under this article, the transferee shall file with the court and serve on all interested parties a notice of the proposed transfer and the application for its authorization, and shall include the following with that notice:
(D) A copy of the disclosure required in subdivision (a) of Section 10136.
(7) All court costs and filing fees shall be paid by the transferee.
(8) No later than the time of filing the petition for court approval, the transferee shall advise the payee of the payee’s right to seek counsel in connection with the transferee’s petition for court approval of the transfer agreement, and shall further advise the payee that if the payee retains counsel in connection with a petition for an order approving the transfer agreement, that the transferee shall pay the payee’s counsel’s fees, regardless of whether the transfer agreement is approved, in an amount not to exceed one thousand five hundred dollars ($1,500).
(d) The transferee shall, within 30 days of obtaining final court approval, file with the Attorney General a copy of any final court order approving or denying the transfer of structured settlement payment rights. The transferee shall specify in written form the following information:
(1) Whether the payee was represented by an attorney and the costs paid or owed to that attorney by the transferee and, if known, by the payee.
(2) The county and judicial district where the court approval was filed.
(3) For approved agreements, whether any changes were made to the transfer agreement.
(4) For rejected agreements, the general category for the rejection.
(5) The total court costs and attorney’s fees paid by the transferor to obtain court approval.
(6) The purchase prices of the transfer agreement and its effective interest rate.
(e) Not later than March 31, 2004, the Attorney General shall file a report with the Legislature to assist in the evaluation of the impact of this section. The report shall include, based on information the Attorney General has received from transferees, the following:
(1) The number of petitions filed.
(2) The number of petitions approved without change.
(3) The number of petitions approved with changes and the general category of the changes requested.
(4) The number of petitions rejected and the general categories for rejection.
(5) The range of purchase prices, mean purchase price, median purchase price mean, effective interest rate and median effective interest rate.
(6) The number of petitions in which the payee was represented by counsel, and if known, the amount of compensation paid to counsel by the transferee and the payee.
§ 10139.5.
(2) The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents.
(3) The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received that advice or knowingly waived that advice in writing.
(4) The transferee has provided the payee with a disclosure form consistent with Section 10136 and the transfer agreement complies with Section 10138.
(5) The transfer does not contravene any applicable statute or the order of any court or other government authority.