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§ 5-1101. Definitions

West's Annotated Code of MarylandCourts and Judicial ProceedingsEffective: October 1, 2016

West's Annotated Code of Maryland
Courts and Judicial Proceedings
Title 5. Limitations, Prohibited Actions, and Immunities (Refs & Annos)
Subtitle 11. Structured Settlements (Refs & Annos)
Effective: October 1, 2016
MD Code, Courts and Judicial Proceedings, § 5-1101
§ 5-1101. Definitions
Currentness
In general
(a) In this subtitle the following words have the meanings indicated.
Discounted present value
(b) “Discounted present value” means the fair present value of future payments, as determined by discounting 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.
Gift
(c) “Gift” means a transfer to a payee of anything of economic value, regardless of form, as an inducement to enter into a transfer agreement or pursue a transfer, except:
(1) The actual cost, not to exceed $100, of the payee's transportation to a hearing concerning a petition filed under § 5-1102 of this subtitle; and
(2) The costs of postage, overnight delivery services, document retrieval fees, and notary services associated with the filing of a petition under § 5-1102 of this subtitle.
Independent professional advice
(d) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser:
(1) Who is engaged by a payee to render advice concerning whether a proposed transfer of structured settlement payment rights would be in the best interest of the payee, taking into account the welfare and support of the payee's dependents;
(2) Who is not affiliated with or compensated by the transferee of the transfer; and
(3) Whose compensation is not affected by whether a transfer occurs.
Interested parties
(e) “Interested parties” means the payee, each beneficiary designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under a structured settlement.
Payee
(f) “Payee” means an individual who receives damage payments that are not subject to income taxation under a structured settlement and proposes to make a transfer of payment rights.
Registrant
(g) “Registrant” means a person registered with the Attorney General under this subtitle.
Responsible administrative authority
(h) “Responsible administrative authority” means a government authority vested with exclusive jurisdiction over the settled claim resolved by a structured settlement.
Structured settlement
(i)(1) “Structured settlement” means an arrangement for periodic payment of damages for personal injury established by a settlement or judgment in resolution of a tort claim.
(2) “Structured settlement” does not include an arrangement for periodic payment of damages for personal injury established by a judgment by confession.
Structured settlement agreement
(j) “Structured settlement agreement” means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement.
Structured settlement obligor
(k) “Structured settlement obligor” means a party who has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement.
Structured settlement payment rights
(l) “Structured settlement payment rights” means the rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if:
(1) The payee resides in this State;
(2) The structured settlement agreement was approved by a court or responsible administrative authority in this State, and the payee does not reside in another state or jurisdiction that has enacted a statute providing for entry of a qualified order as defined in 26 U.S.C. § 5891(b)(2); or
(3) The settled claim was pending before a court of this State when the parties entered into the structured settlement agreement, and the payee does not reside in another state or jurisdiction that has enacted a statute providing for entry of a qualified order as defined in 26 U.S.C. § 5891(b)(2).
Terms of the structured settlement
(m) “Terms of the structured settlement” includes the terms of the structured settlement agreement, the annuity contract, a qualified assignment, and an order or approval of a court or responsible administrative authority authorizing or approving a structured settlement.
Transfer
(n) “Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration.
Transfer agreement
(o) “Transfer agreement” means the agreement providing for the transfer of structured settlement payment rights from a payee to a transferee.
Transferee
(p) “Transferee” means a person acquiring or proposing to acquire structured settlement payment rights through a transfer.

Credits

Added by Acts 2000, c. 366, § 1, eff. Oct. 1, 2000. Amended by Acts 2016, c. 721, § 2, eff. Oct. 1, 2016; Acts 2016, c. 722, § 2, eff. Oct. 1, 2016.
MD Code, Courts and Judicial Proceedings, § 5-1101, MD CTS & JUD PRO § 5-1101
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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