Florida Structured Settlement Factoring Law

By: Robert Palmer | Posted: 03rd September 2008

Florida does have a law which governs the sale and transfer of structured settlement payments. This law has many sections, all containing detailed information which outlines the process of gaining court approval for a structured settlement sale. Get to know this law to know your rights as a seller of structured settlement or annuity payments in Florida.



Florida's law, Title XXXVII, INSURANCE Chapter 626, is divided into six different sections, which include the following.



Purpose Of The Law



The first section defines the purpose of the law, which is to "protect recipients of structured settlements who are involved in the process of transferring structured settlement payment rights." This helps to clarify the intent of the law and show that the purpose of it is only to ensure an equitable sale.



Defining The Law



The second section is a list of definitions which define the meaning of essential language in the statute as it applies to this particular law. This tells readers what specific terms refer to in order to clarify interpretation.



Conditions Of Payments Rights, Settlement Agreements



The third section, detailing terms and conditions for successful approval of FL structured settlement payments, is perhaps the most important. This is the true meat of the law and lays out the steps that buyers must take in order to be in full compliance and gain sale/transfer approval. It includes provisions for full disclosure of rates, commissions and fees, of the amounts of money to be received by the seller in both dollar figures and expressed as percentages, and also for the protection of the interests of the seller and dependents.



Jurisdiction



The section on jurisdiction outlines the process of approval through the courts. This includes information that tells how a successful application should be made, as well as what notifications must be made to interested parties. This section is, essentially, a guide to successfully petitioning the court.



Waiver Prohibition



This section is included to afford protection to the seller in case the buyer does not meet the requirements of the "Conditions" section. It basically says that there can be no fees or expenses, and no loss of income or payments if the transfer fails to comply with the law (fails to get approval).



Noncompliance



This section details the rights of the payee (the seller) if the transferee (the buyer) violates stipulations of the law, such as disclosing discount rates and finance charges. It also includes a clause defining the level of liability the buyer can be held liable to if the violation is a true error, and not an intentional action.



Florida does have a comprehensive law which defines the rights, conditions, and processes for transferring structured settlement payments by selling structured settlements. This law is in place for the protection of the seller, and its aim is to help Florida residents gain fair access to their money though a process that serves their best interests.



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Prosperity Partners serves structured settlement recipients and factoring clients in Florida.
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Tags: commissions, percentages, interested parties, jurisdiction, provisions, notifications, dependents, full disclosure, prohibition, annuity payments, structured settlements