Florida Structured Settlement State Laws
If you live in Florida and are interested in selling your structured settlement for cash, below is a brief overview that can be a good starting point in your research.
Florida Law: Selling Structured Settlement Payments
If you are considering selling your future structured settlement payments for an immediate lump sum in Florida, it's important to understand the laws surrounding this type of transfer. In addition to federal law, 50 states have their own laws that govern the process of transferring the rights of a structured settlement annuity.
Florida Structured Settlement Law
In Florida, the law surrounding the transfer of rights to future structured settlement payments is § 626.99296. Transfers of structured settlement payment rights.
(a) A direct or indirect transfer of structured settlement payment rights is not effective and a structured settlement obligor or annuity issuer is not required to make a payment directly or indirectly to a transferee or assignee of structured settlement payment rights unless the transfer is authorized in advance in a final order by a court of competent jurisdiction which is based on the written express findings by the court that:
1. The transfer complies with this section and does not contravene other applicable law;
2. At least 10 days before the date on which the payee first incurred an obligation with respect to the transfer, the transferee provided to the payee a disclosure statement in bold type, no smaller than 14 points in size, which specifies:
a. The amounts and due dates of the structured settlement payments to be transferred;
b. The aggregate amount of the payments;
c. The discounted present value of the payments, together with the discount rate used in determining the discounted present value;
d. The gross amount payable to the payee in exchange for the payments;
e. An itemized listing of all brokers’ commissions, service charges, application fees, processing fees, closing costs, filing fees, referral fees, administrative fees, legal fees, and notary fees and other commissions, fees, costs, expenses, and charges payable by the payee or deductible from the gross amount otherwise payable to the payee;
f. The net amount payable to the payee after deducting all commissions, fees, costs, expenses, and charges described in sub-subparagraph e.;
g. The effective annual interest rate, which must be disclosed in the following statement: “Based on the net amount that you will receive from us and the amounts and timing of the structured settlement payments that you are turning over to us, you will, in effect, be paying interest to us at a rate of percent per year”; and
h. The amount of any penalty and the aggregate amount of any liquidated damages, including penalties, payable by the payee in the event of a breach of the transfer agreement by the payee;
3. The payee has established that the transfer is in the best interests of the payee, taking into account the welfare and support of the payee’s dependents;
4. The payee has received, or waived in writing his or her right to receive, independent professional advice regarding the legal, tax, and financial implications of the transfer;
5. The transfer agreement provides that if the payee is domiciled in this state, any disputes between the parties will be governed in accordance with the laws of this state and that the domicile state of the payee is the proper venue to bring any cause of action arising out of a breach of the agreement; and
6. The court has determined that the net amount payable to the payee is fair, just, and reasonable under the circumstances then existing.
Structured Settlement Federal Law
To sell your future structured settlement payments, you'll need to comply with both state and federal law. These laws are in place to protect you. Knowing Structured Settlement Federal Law is important as it states the …… 26 U.S. Code 5891 also offers some helpful definitions and other rules for selling structured settlement rights. Read the full law here.