Sell Structured Settlements Sell Structured Insurance Settlements
CALIFORNIA
Prior to selling structured insurance settlements in CA, one needs to be keenly aware of their rights as a structured insurance settlement recipient under the California Structured Settlement Protection Act.
Receiving lump sum cash for structured settlement payments can be an exciting proposition to a structured insurance settlement recipient in California. Settlement Exchange recommends that you review your structured insurance recipient and annuitant rights before contemplating the sale of structured settlement payments in California or even procuring cash quotes for your structured settlement.
We firmly believe that basic education is the key to securing the best quotes for structured insurance settlements and lottery annuity payments. We always advise that one knows their rights as protected under the California Structured Settlement Protection Act. We also advise that one should secure their own legal advice before attempting to get cash for structured settlement payments.
The California Structured Settlement Protection Act dictates that a transferee of structured settlements must reside in the state of California. An California State Court must also approve the selling of the structured insurance settlement and the sale of structured insurance settlements has to be in the best interest of the structured settlement recipient in all cases.
We have attached a copy of the California Structured Settlement Protection Act and a direct link for your benefit.
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=ins&group=10001-11000&file=10134-10139.5
INSURANCE CODE
SECTION 10134–10139.5
10134. For the purposes of this article, the following terms have
the following meanings:
(a) “Buyer’s first right of refusal” means any provision in the
transfer agreement or related documents that obligate the payee to
give to the buyer the first choice or option to purchase any
remaining structured settlement rights belonging to the payee.
(b) “Dependents” include the 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.
(c) “Discounted present value” means the fair present value of
future payments, as determined by discounting those 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.
(d) “Effective equivalent interest rate,” with respect to a
transfer of structured settlement payment rights, means the
annualized rate of interest on the net advance amount, calculated by
treating the transferred structured settlement payments as if they
were installment payments on a loan, with each payment applied first
to accrued unpaid interest and then to principal.
(e) “Expenses” means all broker’s commissions, service charges,
application or processing fees, closing costs, filing or
administrative charges, legal fees, notary fees and other
commissions, fees, costs, and charges that a payee would have to pay
to transfer the structured settlement payment rights of a structured
settlement agreement or that would be deducted from the gross
consideration that would be paid to the payee in connection with the
transfer of the structured settlement payment rights of a structured
settlement agreement.
(f) “Independent professional advice” means advice of an attorney,
certified public accountant, actuary, or other licensed professional
adviser meeting all of the following requirements:
(1) The adviser is engaged by a claimant or payee to render advice
concerning the legal, tax, or financial implications of a structured
settlement or a transfer of structured settlement payment rights.
(2) The adviser’s compensation for rendering independent
professional advice is not affected by occurrence or lack of
occurrence of a settlement or transfer.
(3) A particular adviser is not referred to the payee by the
transferee or its agent, except that the transferee may refer the
payee to a lawyer referral service or agency operated by a state or
local bar association.
(g) “Interested parties” means, with respect to a structured
settlement agreement, the payee, the payee’s attorney, any
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 who has
continuing rights or obligations under the structured settlement
agreement. If the designated beneficiary is a minor, the beneficiary’
s parent or guardian shall be an interested party.
(h) “Payee” means an individual who received tax-free payments
pursuant to a structured settlement agreement.
(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.
(j) “Structured settlement agreement” means an arrangement for
periodic payment of damages established by settlement or judgment in
resolution of a tort claim in which the payment of the judgment or
award is paid in whole, or in part, in periodic tax-free payments
rather than a lump-sum payment. A structured settlement agreement
entered into pursuant to Section 667.7 of the Code of Civil Procedure
or Section 970.6 or 984 of the Government Code is not subject to the
provisions of this article other than the requirements of Section
10138.
(k) “Structured settlement obligor” means the party that has the
continuing periodic payment obligation to the payee under a
structured settlement agreement or a qualified assignment agreement.
(l) “Structured settlement payment rights” means rights to receive
periodic payments, including lump-sum payments, pursuant to a
structured settlement agreement, whether from the settlement obligor
or an annuity issuer.
(m) “Terms of the structured settlement” include, with respect to
a structured settlement agreement, the terms of the structured
settlement agreement, annuity contract, qualified assignment
agreement, and any order or approval of a court or responsible
administrative authority or other governmental authority authorizing
or approving the structured settlement.
(n) “Transfer” means any sale, assignment, pledge, hypothecation,
or other form of alienation or encumbrance made for consideration.
(o) “Transfer agreement” means the agreement providing for the
transfer, and any other document used to effectuate the transfer,
from the payee to the transferee of structured settlement payment
rights of a structured settlement agreement.
(p) “Transferee” means any person receiving structured settlement
payment rights resulting from a transfer.
10135. (a) This article is only applicable to transfers entered
into on or after January 1, 2000.
(b) Notwithstanding subdivision (a), the changes to this article
made by the act amending this section in the 2001-02 Regular Session
shall only be applicable to transfers entered into on or after
January 1, 2002.
(c) This article is only applicable to transfers of structured
settlement payment rights if one of the following requirements is
met:
(1) The payee is domiciled in California at the time the transfer
agreement is signed by the payee.
(2) The payee is not domiciled in California at the time the
transfer agreement is signed and the state where the payee is
domiciled does not have a structured settlement transfer statute, but
either the structured settlement obligor or annuity issuer is
domiciled in California.
10136. (a) No direct or indirect transfer of structured settlement
payment rights shall be effective by a payee to which this article
applies 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 provisions of this section are
satisfied.
(b) Ten or more days before the payee executes a transfer
agreement, the transferee shall provide the payee with a separate
written disclosure statement, accurately completed with the
information that applies to the transfer agreement, in substantially
the following form, in at least 12-point type unless otherwise
indicated (bracketed instructions shall not appear in the form):
“Disclosure Notice Required By Law [14-point boldface type]
You are selling (technically called ‘transferring’) your right to
receive your payments under a structured settlement. You should get
this disclosure notice at least 10 days before you sign any contract.
IMPORTANT TERMS: [14-point boldface type ]
You have agreed to sell to the transferee future payments totaling
____ dollars ($____) in exchange for a purchase price of ____
dollars ($____).
Those future payments have a discounted present value equal to
____ dollars ($____), calculated by applying the discount rate of
____ percent utilized by the Internal Revenue Service to value
annuities in probate proceedings.
The purchase price to be paid to you was calculated using a
discount rate of ____ percent.
The purchase price payable to you is less than the present value
of the future payments stated above because the discount rate of your
transaction is greater than the rate utilized by the Internal
Revenue Service.
For comparison purposes:
If you did not sell your right to receive structured settlement
payments, but instead borrowed the net amount of $____ and paid that
loan back in installments with each of the payments you are now
selling, the equivalent interest rate you would be paying for that
loan would be ____% per year.
[The text and information set forth above under ‘IMPORTANT TERMS’
shall be in 14-point type and circumscribed by a box with a bold
border]
To figure the net amount we are paying, we have charged you for
the following expenses:
[itemize in a list by type and amount]
for a total of $____ in expenses.
You should get independent professional advice about whether
selling your structured settlement payments is a good idea for you
and for your dependents.
You are advised to seek independent legal or financial advice
regarding the transaction and, under the law, the cost of that
advice, up to one thousand five hundred dollars ($1,500) will be paid
by the transferee, the person or entity to whom you have agreed to
transfer and assign the payments in question. The transferee or
purchaser’s accountant, counsel, or actuary may not advise you in
this transaction.
You also should get independent professional advice from an
accountant or lawyer experienced in tax matters about any income tax
consequences from selling your structured settlement payments. We
cannot give you the name of anyone to advise you.
Court approval is needed [14-point boldface type]. A court must
approve any agreement you sign to sell your rights under a structured
settlement. You will not receive any money until the court approves
the sale. Court approval could take more than 30 days following the
day you sign an agreement selling your rights under a structured
settlement.
A sale of future structured settlement payments will mean that you
will no longer receive the future payments that are sold. You are
advised to enter into this transaction only after you have carefully
considered the consequences of the transaction.
You may cancel the contract before court approval [14-point
boldface type]. You may cancel the agreement selling (or
transferring) your rights under a structured settlement without any
cost or obligation. You may cancel at any time before the court
approves the contract. You will get notice of the date of the court
hearing.
If you want to cancel, you do not need any special form. But, you
must cancel in writing. Send your cancellation to: [insert transferee’
s name and address].
If you believe that you have been treated unfairly or have been
misled, you should contact your local district attorney or the state
Attorney General.”
(c) The transfer agreement shall be written in at least 12-point
type and shall be complete and without blank spaces to be completed
after the payee’s signature. The transfer agreement shall set forth
clear and conspicuously, and in no less than 12-point type, all of
the following:
(1) A statement that the agreement is not effective until the date
on which a court enters a final order approving the transfer
agreement and that payment to the payee pursuant to the transfer
agreement will be delayed up to 30 days or more after the date the
payee signed the transfer agreement in order for the court to review
and approve the transfer agreement.
(2) The amounts and due dates of the structured settlement
payments to be transferred.
(3) The aggregate amount of the structured settlement payments to
be transferred. This amount shall be disclosed in the form prescribed
in subdivision (b).
(4) The aggregate amount of all expenses, if any, to be deducted
from the purchase price to be paid to the payee in exchange for the
payments to be transferred, and an itemization of all expenses by
type and amount.
(5) The amount payable to the payee, net of all expenses, in
exchange for the payments to be transferred. This amount shall be
disclosed in the form prescribed in subdivision (b).
(6) The discounted present value of all structured settlement
payments to be transferred and a statement that “This is the value of
your structured settlement in current dollars.” This amount shall be
disclosed in the form prescribed in subdivision (b).
(7) The federal rate, as described in subdivision (c) of Section
10134, used in determining the discounted present value.
(8) The effective equivalent interest rate, which shall be
disclosed in the following statement:
“YOU WILL BE PAYING THE EQUIVALENT OF 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.”
This percentage amount shall be disclosed in the form prescribed
in subdivision (b) in the space for “the equivalent interest rate you
would be paying for this loan would be ____% per year.”
(9) The quotient (expressed as a percentage) obtained by dividing
the net payment amount by the discounted present value of the
payments.
(10) 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.
(11) A statement that the court approving the transfer agreement
retains continuing jurisdiction to interpret and monitor
implementation of the agreement as justice may require.
(12) The following statement: “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.”
(13) The following statement printed in 14-point type,
circumscribed by a box with a bold border, and set forth immediately
above or adjacent to the space reserved for the payee’s signature:
“You have the right to cancel this agreement without any cost or
obligation until the date the court approves this agreement. You will
receive notice of the court hearing date when approval may occur.
You must cancel in writing and send your cancellation to [insert
transferee’s name and address].”
(d) The contract for transferring the structured settlement
payment rights may not violate Section 10138.
(e) At any time before the date on which a court enters a final
order approving the transfer agreement pursuant to Section 10139.5,
the payee may cancel the transfer agreement, without cost or further
obligation, by providing written notice of cancellation to the
transferee.
10137. A transfer of structured settlement payment rights is void
unless a court reviews and approves the transfer and finds the
following conditions are met:
(a) The transfer of the structured settlement payment rights is
fair and reasonable and in the best interest of the payee, taking
into account the welfare and support of his or her dependents.
(b) The transfer complies with the requirements of this article,
will not contravene other applicable law, and the court has reviewed
and approved the transfer as provided in Section 10139.5.
10138. (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
provision void and unenforceable.
(1) Any provision that waives the seller’s right to sue under any
law, or in which the seller agrees not to sue, or that waives
jurisdiction or standing to sue under the contract.
(2) Any provision that requires the seller to indemnify and hold
harmless the buyer, or to pay the buyer’s costs of defense, in any
claim or action brought by the seller or on the seller’s behalf
contesting the sale for any reason.
(3) Any provision that waives benefits or rights conferred by law
with respect to garnishment of wages.
(4) Any provision providing that the contract is confidential or
proprietary, belonging to the buyer.
(5) Any provision in which the seller stipulates to a confession
of judgment.
(6) Any provision requiring the seller to pay the buyer’s attorney’
s fees and costs if the purchase agreement is not completed.
(7) Any provision requiring the seller to pay any tax liability
arising under the federal tax laws, other than the seller’s own tax
liability, if any, that results from the transfer.
(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 (b) of Section 10136.
(9) If the payee is domiciled in California at the time that the
transfer agreement is signed by the payee, any forum selection
provision providing for jurisdiction to be in a court outside of
California for any action arising under the contract.
(10) If the payee is domiciled in California at the time that the
transfer agreement is signed by the payee, any choice-of-law
provision that provides for controlling law to be other than
California law in any action arising under the contract.
(11) A provision that provides the transferee with a security
interest or collateral interest in any structured settlement payment
rights that exceed the actual dollar amount of the structured
settlement payment rights being transferred.
(12) Any provision that creates a “buyer’s first right of refusal”
to purchase any remaining structured payment rights that the payee
may desire to sell in the future.
(b) The provisions in this section may not be waived by agreement
of the parties.
10139. (a) At the time of filing a petition pursuant to Section
10139.5 for court approval, 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, and, unless excepted pursuant to
subparagraph (H) of paragraph (2) of subdivision (f) of Section
10139.5, a copy of the annuity contract, any qualified assignment
agreement, the underlying structured settlement agreement, or any
order or approval of any court or responsible administrative
authority authorizing or approving the structured settlement, and 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.
(b) The Attorney General may, but is not required to, review any
transfer agreement in order to ensure that the transfer meets the
requirements of this article.
(c) 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.
(d) This section does not apply to a transfer by a payee who is
not a resident of California at the time the payee executes the
transfer agreement.
10139.1. Any subsequent transfer of any additional structured
settlement payments between the payee and transferee may be made only
after compliance with all of the requirements of this article.
10139.2. Any notice required by this article shall be deemed to
have been given if addressed to the recipient’s last known address
and deposited, first class postage paid, in the United States mail
not less than five calendar days prior to the date on which notice is
required.
10139.3. (a) None of the provisions of this article may be waived
by the payee.
(b) Compliance with the requirements set forth in Sections 10136,
10137, and 10138 shall be solely the responsibility of the transferee
in any transfer of structured settlement payment rights.
(c) A payee who proposes to make a transfer of structured
settlement payment rights shall not incur any penalty, shall not
forfeit any application fee or other payment, and shall not otherwise
incur any liability to the proposed transferee based on any failure
of that transfer to satisfy the requirements of Sections 10136,
10137, and 10138.
(d) The transferee and any assignee shall be liable to the
structured settlement obligor and the annuity issuer for any and all
taxes incurred as a consequence of the transfer or as a consequence
of any failure of the transferee or assignee to comply with this
article or the terms of the structured settlement agreement.
(e) Neither the annuity issuer nor the structured settlement
obligor may be required to divide any structured settlement payment
between the payee and any transferee or assignee or between two or
more transferees or assignees.
10139.4. A violation of this article by a transferee shall
constitute an unfair business practice pursuant to Chapter 5
(commencing with Section 17200) of Part 2 of Division 7 of the
Business and Professions Code and shall be subject to the penalties
and other remedies of that chapter.
10139.5. (a) 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 written findings by the court that:
(1) The transfer is in the best interest of the payee, taking into
account the welfare and support of the payee’s dependents.
(2) 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, in writing, the
opportunity to receive the advice.
(3) The transferee has complied with the notification requirements
pursuant to paragraph (2) of subdivision (f), the transferee has
provided the payee with a disclosure form that complies with Section
10136, and the transfer agreement complies with Sections 10136 and
10138.
(4) The transfer does not contravene any applicable statute or the
order of any court or other government authority.
(5) The payee understands the terms of the transfer agreement,
including the terms set forth in the disclosure statement required by
Section 10136.
(6) The payee understands and does not wish to exercise the payee’
s right to cancel the transfer agreement.
(b) When determining whether the proposed transfer should be
approved, including whether the transfer is fair, reasonable, and in
the payee’s best interest, taking into account the welfare and
support of the payee’s dependents, the court shall consider the
totality of the circumstances, including, but not limited to, all of
the following:
(1) The reasonable preference and desire of the payee to complete
the proposed transaction, taking into account the payee’s age, mental
capacity, legal knowledge, and apparent maturity level.
(2) The stated purpose of the transfer.
(3) The payee’s financial and economic situation.
(4) The terms of the transaction, including whether the payee is
transferring monthly or lump sum payments or all or a portion of his
or her future payments.
(5) Whether, when the settlement was completed, the future
periodic payments that are the subject of the proposed transfer were
intended to pay for the future medical care and treatment of the
payee relating to injuries sustained by the payee in the incident
that was the subject of the settlement and whether the payee still
needs those future payments to pay for that future care and
treatment.
(6) Whether, when the settlement was completed, the future
periodic payments that are the subject of the proposed transfer were
intended to provide for the necessary living expenses of the payee
and whether the payee still needs the future structured settlement
payments to pay for future necessary living expenses.
(7) Whether the payee is, at the time of the proposed transfer,
likely to require future medical care and treatment for the injuries
that the payee sustained in connection with the incident that was the
subject of the settlement and whether the payee lacks other
resources, including insurance, sufficient to cover those future
medical expenses.
(8) Whether the payee has other means of income or support, aside
from the structured settlement payments that are the subject of the
proposed transfer, sufficient to meet the payee’s future financial
obligations for maintenance and support of the payee’s dependents,
specifically including, but not limited to, the payee’s child support
obligations, if any. The payee shall disclose to the transferee and
the court his or her court-ordered child support or maintenance
obligations for the court’s consideration.
(9) Whether the financial terms of the transaction, including the
discount rate applied to determine the amount to be paid to the
payee, the expenses and costs of the transaction for both the payee
and the transferee, the size of the transaction, the available
financial alternatives to the payee to achieve the payee’s stated
objectives, are fair and reasonable.
(10) Whether the payee completed previous transactions involving
the payee’s structured settlement payments and the timing and size of
the previous transactions and whether the payee was satisfied with
any previous transaction.
(11) Whether the transferee attempted previous transactions
involving the payee’s structured settlement payments that were
denied, or that were dismissed or withdrawn prior to a decision on
the merits, within the past five years.
(12) Whether, to the best of the transferee’s knowledge after
making inquiry with the payee, the payee has attempted structured
settlement payment transfer transactions with another person or
entity, other than the transferee, that were denied, or which were
dismissed or withdrawn prior to a decision on the merits, within the
past five years.
(13) Whether the payee, or his or her family or dependents, are in
or are facing a hardship situation.
(14) Whether the payee received independent legal or financial
advice regarding the transaction. The court may deny or defer ruling
on the petition for approval of a transfer of structured settlement
payment rights if the court believes that the payee does not fully
understand the proposed transaction and that independent legal or
financial advice regarding the transaction should be obtained by the
payee.
(15) Any other factors or facts that the payee, the transferee, or
any other interested party calls to the attention of the reviewing
court or that the court determines should be considered in reviewing
the transfer.
(c) Every petition for approval of a transfer of structured
settlement payment rights, except as provided in subdivision (d),
shall include, to the extent known after the transferee has made
reasonable inquiry with the payee, all of the following:
(1) The payee’s name, address, and age.
(2) The payee’s marital status, and, if married or separated, the
name of the payee’s spouse.
(3) The names, ages, and place or places of residence of the payee’
s minor children or other dependents, if any.
(4) The amounts and sources of the payee’s monthly income and
financial resources and, if presently married, the amounts and
sources of the monthly income and financial resources of the payee’s
spouse.
(5) Whether the payee is currently obligated under any child
support or spousal support order, and, if so, the names, addresses,
and telephone numbers of any individual, entity, or agency that is
receiving child or spousal support from the payee under that order or
that has jurisdiction over the order or the payments in question.
(6) Information regarding previous transfers or attempted
transfers, as described in paragraph (11), (12), or (13) of
subdivision (b). The transferee or payee may choose to provide this
information by providing copies of pleadings, transaction documents,
or orders involving any previous attempted or completed transfer or
by providing the court a summary of available information regarding
any previous transfer or attempted transfer, such as the date of the
transfer or attempted transfer, the payments transferred or attempted
to be transferred by the payee in the earlier transaction, the
amount of money received by the payee in connection with the previous
transaction, and generally the payee’s reasons for pursuing or
completing a previous transaction. The transferee’s inability to
provide the information required by this paragraph shall not preclude
the court from approving the proposed transfer, if the court
determines that the information is not available to the transferee
after the transferee has made a reasonable effort to secure the
information, including making an inquiry with the payee.
(d) With respect to the information required to be included in
every petition for approval of a transfer of structured settlement
payment rights pursuant to paragraphs (2), (3), (4), (5), and (6) of
subdivision (c), that information shall be deemed to be included in
the petition if it is provided at the scheduled hearing on the
proposed transfer through oral testimony or documentary evidence
filed with the court and made a part of the record consistent with
the rules of evidence and procedure.
(e) Following a transfer of structured settlement payment rights
under this article:
(1) The structured settlement obligor and the annuity issuer
shall, as to all parties except the transferee, be discharged and
released from any and all liability for the transferred payments.
(2) The transferee shall be liable to the structured settlement
obligor and the annuity issuer if the transfer contravenes the terms
of the structured settlement for the following:
(A) Any taxes incurred by those parties as a consequence of the
transfer.
(B) Any other liabilities or costs, including reasonable costs and
attorney’s 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.
(3) Neither the annuity issuer nor the structured settlement
obligor may be required to divide any periodic payment between the
payee and any transferee or assignee or between two, or more,
transferees or assignees.
(4) Any further transfer of structured settlement payment rights
by the payee may be made only after compliance with all of the
requirements of this article.
(f) (1) A petition 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 at
the time the transfer agreement is signed by the payee, or, if the
payee is not domiciled in California, in the county in which the
payee resides or in the county where the structured settlement
obligor or annuity issuer is domiciled.
(2) Not less than 20 days prior to the scheduled hearing on any
petition 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 petition for its authorization, and shall include the
following with that notice:
(A) A copy of the transferee’s current petition and any other
prior petition, whether approved or withdrawn, that was filed with
the court in accordance with paragraph (6) of subdivision (c).
(B) A copy of the proposed transfer agreement and disclosure form
required by paragraph (3) of subdivision (a).
(C) A listing of each of the payee’s dependents, together with
each dependent’s age.
(D) A copy of the disclosure required in subdivision (b) of
Section 10136.
(E) A copy of the annuity contract, if available.
(F) A copy of any qualified assignment agreement, if available.
(G) A copy of the underlying structured settlement agreement, if
available.
(H) If a copy of a document described in subparagraph (E), (F), or
(G) is unavailable or cannot be located, then the transferee is not
required to attach a copy of that document to the petition or notice
of the proposed transfer if the transferee satisfies the court that
reasonable efforts to locate and secure a copy of the document have
been made, including making inquiry with the payee. If the documents
are available, but contain a confidentiality or nondisclosure
provision, then the transferee shall summarize in the petition the
payments due and owing to the payee, and, if requested by the court,
shall provide copies of the documents to the court at a scheduled
hearing.
(I) Proof of service showing compliance with the notification
requirements of this section.
(J) Notification that any interested party is entitled to support,
oppose, or otherwise respond to the transferee’s petition, either in
person or by counsel, by submitting written comments to the court or
by participating in the hearing.
(K) Notification of the time and place of the hearing and
notification of the manner in which and the time by which written
responses to the petition must be filed, which may not be less than
15 days after service of the transferee’s notice, in order to be
considered by the court.
(L) If the payee entered into the structured settlement at issue
within five years prior to the date of the transfer agreement, then
the transferee shall provide the following notice to the payee’s
attorney of record at the time the structured settlement was created,
if the attorney is licensed to practice in California, at the
attorney’s address on file with the State Bar of California. The
notice shall be delivered by regular mail and shall contain the
following language:
“Your former client, (insert name, address and telephone number of
payee), the ‘payee,’ has entered into a contract with (insert name
of transferee) to transfer and assign certain future structured
settlement payment rights. The transaction is subject to court review
and approval under California law. As the payee’s former attorney,
you are entitled to receive this notice. You are not required to
represent, advise, or consult with the payee in connection with the
proposed transaction. You are not required to take any action at all
in response to this notice. You may, but are not required to, contact
the payee regarding the transaction. The payee is not required to
consult with you or provide you any information regarding the
transaction, but the payee may do so if he or she wishes.”
The notice to the former attorney described in this section is not
required to be provided if the payee in the transaction was not a
party to the original structured settlement at issue (for example, if
the payee is an heir or beneficiary of the person who was a party to
the original structured settlement). Also, if the payee cannot
recall or identify his or her former attorney and if the identity of
the former attorney cannot be ascertained from the available
structured settlement documents, then the notice described in this
subparagraph is not required to be provided and the transfer may
proceed without the notice.
(g) All court costs and filing fees shall be paid by the
transferee.
(h) 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 independent counsel and financial advice 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, a licensed certified public accountant, or a
licensed actuary in connection with a petition for an order approving
the transfer agreement, that the transferee shall pay the fees of
the payee’s counsel, accountant, or actuary, regardless of whether
the transfer agreement is approved, and regardless of whether the
attorney, accountant, or actuary files any document or appears at the
hearing on the petition for transfer, in an aggregate amount not to
exceed one thousand five hundred dollars ($1,500). The transferee’s
accountant, counsel, or actuary may not advise the payee.
(i) The court shall retain continuing jurisdiction to interpret
and monitor the implementation and closing of the transaction that is
the subject of the transfer agreement as justice requires.
