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Article: NCOIL, States Seek Limits on Structured Settlement Sales.
- Article from:
- Claims
- Article date:
- August 1, 2000
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Following the lead of 16 states that have passed laws restricting the sale of structured settlement payment streams, the National Conference of Insurance Legislators recently approved its structured settlement transfers protection model act.
Under a structured settlement, an injured person receives funds disbursed over time, compensation made with the aim of of ensuring long-term financial security. Many insurance industry groups feel that the financial security of claimants is undermined by the unregulated sale of settlements to factoring companies that offer to buy the payment streams in return for a single cash payment of as little as six cents on the dollar.