HB 509 (BR 1550) - J. Fischer
AN ACT relating to structured settlements.
Amend KRS 454.430 to define terms; define "structured settlement" to include periodic payments in settlement of a workers' compensation claim; amend KRS 454.431 to include that a responsible administrative authority may approve transfer of structured settlement payment rights in a final order; provide that the final order by the court or responsible administrative authority is to be based on express findings, including that the payee has been advised in writing to seek independent professional advice and has received such advice or waived it in writing, and the transfer does not contravene any statute or order of any court or other government authority; require the transferee to provide a disclosure statement at least three days, rather than ten days, prior to the date the payee signs the transfer agreement; require the disclosure statement to disclose the amounts and due dates of payments to be transferred, aggregate amount of payments, the discounted present value of payments, the gross advance amount, an itemized listing of all applicable transfer expenses and the transferee's best estimate of the amount of any fees and disbursements, the net advance amount, the amount of any penalties or liquidated damages payable by the payee in the event of breach of the transfer agreement, and a statement that the payee has the right to cancel the transfer agreement not later than the third business day after the date the agreement is signed by the payee; amend KRS 454.435 to require that an application for approval of transfer of structured settlement rights be made by the transferee and permit it to be brought in the county in which the payee resides, in the county in which the structured settlement obligor or annuity issuer maintains its principal place of business, or in any court or before any responsible administrative authority which approved the agreement; require the transferee to file with the court or responsible administrative authority not less than twenty days prior to a scheduled hearing on an application for approval of transfer a notice of the proposed transfer which includes a copy of the transferee's application, a copy of the disclosure statement, a copy of the transfer agreement, a listing of each of the payee's dependents and their ages, notification that any interested party is entitled to support, oppose, or otherwise respond to the application by submitting written comments or participating in the hearing, and notification of the time and place of the hearing and notification that written responses to the application shall be filed not less than fifteen days, rather than ten days, after service of notice; create a new section of KRS Chapter 454 to provide that following a transfer of structured settlement payment rights the obligor and annuity issuer are discharged from all liability; establish the liability of the transferee to the obligor and the annuity issuer; prohibit the annuity issuer and obligor from dividing any periodic payment between the payee and any transferee or assignee; provide that any further transfer of payment rights by the payee may be made only after compliance with this Act; create a new section of KRS Chapter 454 to provide that the provisions of this Act cannot be waived by any payee; require transfer agreements to provide that disputes under the agreement must be determined in and under the laws of this state; prohibit the extension of any transfer of structured settlement payment rights to any payments that are life-contingent unless certain conditions are met; provide that no payee who proposes to make a transfer shall incur any penalty, forfeit an application fee or other payment, or otherwise incur any liability based on any failure of the transfer to satisfy the conditions of this Act; provide that nothing in this Act shall be construed to authorize any transfer in contravention of any law; provide that compliance with the approval and disclosure provisions are solely the responsibility of the transferee; create a new section of KRS Chapter 454 to provide that this Act shall apply to transfer of structured settlement payment rights under a transfer agreement entered into on or after the thirtieth day after the effective date of this Act; create a new section of KRS Chapter 454 to provide that this Act may be cited as the Structured Settlement Protection Act.
Feb 14-introduced in House
Feb 18-to Judiciary (H)