Arizona Structured Settlement Statutes Protect Citizen Interests

In Arizona, as in most other states of the nation, the selling of structured settlement payments is governed by state law (in compliance with all overruling federal regulations). The statute is designed to protect the rights and interests of the payee (the person selling structured settlement payments). If you are interested in selling your settlement in whole or in part, you should learn some basics of the law so that you know what your rights are and how the statute will bear on your transaction.

The Intent Of Arizona's Structured Settlement Law

The intent of Arizona's structured settlement law is simply to ensure that sellers/payees are not taken advantage of. In many ways this is similar to the intent of laws that govern all types of lending and money transactions in the state like mortgages and loans—the estate simply wants to afford some protection to its citizens so that the sale is conducted fairly and in the interest of the seller.

Arizona's intent is not to convince sellers that selling structured settlements is somehow negative. The state does firmly recognize that there is a lot that can be gained through this type of sale, and that by selling structured settlement payments residents can utilize a very good financial tool. It is to that end that the statute has been written, so that the sale is most beneficial to the holder of the settlement.

Some Basic Information About AZ Structured Settlement Law

The first things stated in the Arizona law on structured settlements Arizona law on structured settlements is that no transfer (i.e., sale) of payments will be effective until approved by a presiding Arizona court. To gain approval, the company, terms of the settlement sale, and practices of the buyer must meet the strict regulations set forth by the state. In part, those requirements include

• Full compliance with the letter of the law, AZ Title 12, Chapter 20
• Full disclosure of all rates and fees, including discount rate and present discounted value of future structured settlement payments
• Provision of a disclosure statement to the payee no less than 10 days prior to effective date
• Net amount due to client (seller) after all discounts, commissions, and fees (in other words, the bottom line dollar figure of what is to be received in cash)

The statute also provides that the transfer and sale must be of benefit to the seller; it states that the transfer must be "…fair and reasonable and in the best interests of the payee and the payee's dependents," clearly showing that the weight of the law and of the transaction as a whole is behind the seller, and not the buyer of structured settlement payments.

Arizona has joined the overwhelming majority of states in enacting laws to protect the rights of structured settlement sellers. The language of the law is clear; in Arizona, structured settlement selling is to remain a useful financial tool that is to the benefit of the seller.

Jason Rigler and Prosperity Partners provide resources for settlement attorneys and settlement payees regarding the factoring of structured settlements in Arizona and Arizona law on structured settlements