Article 1 Structured Damages 6-11-1 – 6-11-7
Article 2 Punitive Damages 6-11-20 – 6-11-30
Article 3 Structural Settlement Protection Act 6-11-50 – 6-11-59

Terms Used In Alabama Code > Title 6 > Chapter 11

  • abuse: The occurrence of one or more of the following acts by a family or household member, as defined by subdivision (3) of subsection (b) of Section 15-10-3:

    a. See Alabama Code 27-55-2

  • ABUSE STATUS: The fact that a person is or has been the subject of abuse and has sustained abuse-related medical conditions or has incurred abuse-related claims. See Alabama Code 27-55-2
  • ABUSE-RELATED CLAIM: A claim under an insurance policy or health benefit plan for a loss which resulted from an act of abuse as defined in this chapter. See Alabama Code 27-55-2
  • ABUSE-RELATED MEDICAL CONDITION: A medical condition sustained by a subject of abuse which arises in whole or in part out of an act or pattern of abuse as defined in this chapter. See Alabama Code 27-55-2
  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • agreement: Any agreement between a wholesaler and a supplier, whether oral or written, whereby a wholesaler is granted the right to purchase and sell a brand or brands of wine sold by a supplier. See Alabama Code 45-49-23.01
  • alea: The Alabama State Law Enforcement Agency. See Alabama Code 41-9-590
  • ANCILLARY BUSINESS: A business owned by a wholesaler, or by a substantial partner of a wholesaler, the primary business of which is directly related to the transporting, storing, or marketing of the brand or brands of wine of a supplier with whom the wholesaler has an agreement; or a business owned by a wholesaler, a substantial stockholder of a wholesaler, or a substantial partner of a wholesaler which recycles empty beverage containers. See Alabama Code 45-49-23.01
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • ANNUITY ISSUER: An insurer that has issued a contract to fund periodic payments under a structured settlement. See Alabama Code 6-11-51
  • Answer: The formal written statement by a defendant responding to a civil complaint and setting forth the grounds for defense.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • association: Includes, but is not limited to, an unincorporated nonprofit association as defined in Chapter 17 and an unincorporated professional association as defined in Article 1 of Chapter 30. See Alabama Code 10A-1-1.03
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Beneficial stockholder: means a person who owns the beneficial interest in stock, which may be a record stockholder or a person on whose behalf shares of stock are registered in the name of an intermediary or nominee. See Alabama Code 10A-2A-1.40
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • certificate of incorporation: as used in this chapter is synonymous to the term "certificate of formation" used in Chapter 1. See Alabama Code 10A-2A-1.40
  • Chambers: A judge's office.
  • CLEAR AND CONVINCING EVIDENCE: Evidence that, when weighed against evidence in opposition, will produce in the mind of the trier of fact a firm conviction as to each essential element of the claim and a high probability as to the correctness of the conclusion. See Alabama Code 6-11-20
  • collaborator: A private health carrier, third party purchaser, provider, health care center, health care facility, state and local governmental entity, or other public payers, corporations, individuals, and consumers who are expecting to collectively cooperate, negotiate, or contract with another collaborator, or integrated care network in the health care system. See Alabama Code 22-6-220
  • COLORECTAL CANCER EXAMINATIONS: Examinations and laboratory tests specified in current American Cancer Society guidelines for colorectal cancer screening of asymptomatic individuals. See Alabama Code 27-57-1
  • commissioner: The Commissioner of the state Department of Insurance. See Alabama Code 27-55-2
  • CONFIDENTIAL ABUSE INFORMATION: Information about the acts of abuse or abuse status of a subject of abuse, the address and telephone number, home and work, of a subject of abuse, or the status of an applicant or insured as a family member, employer, or associate of, or a person in a relationship with a subject of abuse. See Alabama Code 27-55-2
  • Contingent beneficiary: Receiver of property or benefits if the first named beneficiary fails to receive any or all of the property or benefits in question before his (her) death.
  • corporation: Includes a domestic or foreign business corporation as defined in Chapter 2 or Chapter 2A, as applicable, a domestic or foreign nonprofit corporation as defined in Chapter 3, a domestic or foreign professional corporation as defined in Chapter 4, and those entities specified in Chapter 20 as corporate. See Alabama Code 10A-1-1.03
  • court: Every court and judge having jurisdiction in a case. See Alabama Code 10A-1-1.03
  • COVERED PERSON: Any individual, family, or family member on whose behalf third-party payment or prepayment of health or medical expenses is provided under an insurance policy, plan, or contract providing for third-party payment or prepayment of health care or medical expenses. See Alabama Code 27-56-2
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • delivery: means any method of delivery used in conventional commercial practice, including delivery by hand, mail, commercial delivery, and, if authorized in accordance with Section 10A-2A-1. See Alabama Code 10A-2A-1.40
  • Dependent: A person dependent for support upon another.
  • dependents: A payee's spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. See Alabama Code 6-11-51
  • DESIGNATED MEMBER: The spouse, child, grandchild, parent, brother, or sister of a deceased individual who owned an interest, including a controlling interest, in a wholesaler; or any person who inherits the deceased individual's ownership interest in the wholesaler under the terms of the deceased individual's will, or under the laws of intestate succession of this state; or any person who or entity which has otherwise by designation in writing by the deceased individual, succeeded the deceased individual in the wholesaler's business, or has succeeded to the deceased individual's ownership interest in the wholesaler pursuant to a written contract or instrument; and also includes the appointed and qualified personal representative and the testamentary trustee of a deceased individual owning an ownership interest in a wholesaler. See Alabama Code 45-49-23.01
  • director: An individual who serves on the board of directors, by whatever name known, of a foreign or domestic corporation. See Alabama Code 10A-1-1.03
  • DISCOUNTED PRESENT VALUE: The present value of future payments determined by discounting the 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. See Alabama Code 6-11-51
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Distribution: means a direct or indirect transfer of cash or other property (except a corporation's own stock) or incurrence of indebtedness by a corporation to or for the benefit of its stockholders in respect of any of its stock. See Alabama Code 10A-2A-1.40
  • Document: means a writing as defined in Chapter 1. See Alabama Code 10A-2A-1.40
  • domestic: With respect to an entity, that the entity is formed and exists pursuant to this title. See Alabama Code 10A-1-1.03
  • electronic: Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Alabama Code 10A-1-1.03
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Entity: includes corporation; foreign corporation; nonprofit corporation; foreign nonprofit corporation; estate; trust; unincorporated entity; foreign unincorporated entity; and state, United States, and foreign government. See Alabama Code 10A-2A-1.40
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • EVIDENCE OF ABUSE: A court order, police report, medical report, or report from the Department of Human Resources, or a shelter for domestic violence victims, indicating that the insured is or has been the subject of abuse. See Alabama Code 27-55-2
  • Expenses: means reasonable expenses of any kind that are incurred in connection with a matter. See Alabama Code 10A-2A-1.40
  • EYE CARE PROVIDER: A licensed optometrist or a licensed ophthalmologist. See Alabama Code 27-56-2
  • Fiduciary: A trustee, executor, or administrator.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • foreign: With respect to an entity, that the entity is formed and existing under the laws of a jurisdiction other than this state. See Alabama Code 10A-1-1.03
  • foreign corporation: as used in this division , shall mean:

    (1) Any bank or other corporation now or hereafter organized or existing under the laws of any state of the United States other than this state; and

    (2) Any national banking association or other corporation organized under the laws of the United States having its principal place of business in any state of the United States other than this state. See Alabama Code 10A-2A-15.10

  • foreign corporation: means an entity incorporated or existing under this chapter. See Alabama Code 10A-2A-1.40
  • fraud: An intentional misrepresentation, deceit, or concealment of a material fact the concealing party had a duty to disclose, which was gross, oppressive, or malicious and committed with the intention on the part of the defendant of thereby depriving a person or entity of property or legal rights or otherwise causing injury. See Alabama Code 6-11-20
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • GENETIC CHARACTERISTICS: A scientifically or medically identifiable gene or chromosome, or alteration thereof, that is known to be a cause of a disease or disorder, or determined to be associated with a statistically increased risk of development of a disease or disorder. See Alabama Code 27-53-1
  • GENETIC TEST: A pre-symptomatic laboratory test which is generally accepted in the scientific and medical communities for the determination of the presence or absence of the genetic characteristics that cause or are associated with risk of a disease or disorder. See Alabama Code 27-53-1
  • GOOD FAITH: Honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade, as defined in and interpreted under the Uniform Commercial Code, Section 7-2-103. See Alabama Code 45-49-23.01
  • GROSS ADVANCE AMOUNT: The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. See Alabama Code 6-11-51
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • HEALTH BENEFIT PLAN: A health insurance policy, including a self-insured health plan, that covers hospital, medical, or surgical expenses, health maintenance organizations, preferred provider organizations, medical service organizations, physician-hospital organizations, or any other person, firm, corporation, joint venture, or other similar business entity that pays for, purchases, or furnishes health care services to patients, insureds, or beneficiaries in this state. See Alabama Code 27-53-1
  • HEALTH BENEFIT PLAN: A policy, contract, certificate, or agreement offered by a health carrier to provide, deliver, arrange, pay for, or reimburse any of the costs of health care services or health care benefit. See Alabama Code 27-55-2
  • HEALTH BENEFIT PLAN: A group health insurance policy that covers hospital, medical, or surgical expenses, health maintenance organizations, preferred provider organizations, medical service organizations, physician-hospital organizations, or any other person, firm, corporation, joint venture, or other similar business entity that pays for, purchases, or furnishes health care services to patients, insureds, or beneficiaries in this state. See Alabama Code 27-57-1
  • HEALTH CARRIER: A person or entity subject to regulation under this chapter who or which contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any costs of health care services including, without limitation, a sickness and accident insurance company, a health maintenance organization, mutual aid associations, a fraternal benefit society, a hospital service corporation, or any other entity providing a plan of health insurance, including entities created pursuant to Article 6 (commencing with Section 10A-20-6. See Alabama Code 27-55-2
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • INDEPENDENT PROFESSIONAL ADVICE: Advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. See Alabama Code 6-11-51
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • insured: A party named on a policy or health benefit plan as the person with legal rights to the benefits provided by the policy or health benefit plan, except that for life insurance, insured means the person whose life is covered under the policy. See Alabama Code 27-55-2
  • insurer: A person or other legal entity engaged in the business of insurance in this state, including agents, brokers, adjusters, and third-party administrators. See Alabama Code 27-55-2
  • INTEGRATED CARE NETWORK: One or more statewide organizations of health care providers, with offices in each regional care organization region, that contracts with the Medicaid Agency to provide Medicaid benefits to certain Medicaid beneficiaries as defined in subdivision (4) and that meets the requirements set forth in this article. See Alabama Code 22-6-220
  • Inter vivos: Transfer of property from one living person to another living person.
  • Interest: means either or both of the following rights under the governing statute governing an unincorporated entity:

    (i) the right to receive distributions from the entity either in the ordinary course or upon liquidation; or

    (ii) the right to receive notice or vote on issues involving its internal affairs, other than as an agent, assignee, proxy, or person responsible for managing its business and affairs. See Alabama Code 10A-2A-1.40

  • INTERESTED PARTIES: With respect to any structured settlement, the payee, any beneficiary irrevocably 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 such structured settlement. See Alabama Code 6-11-51
  • Intestate: Dying without leaving a will.
  • law: Unless the context requires otherwise, both statutory and common law. See Alabama Code 10A-1-1.03
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • malice: The intentional doing of a wrongful act without just cause or excuse, either:

    a. See Alabama Code 6-11-20

  • Mistrial: An invalid trial, caused by fundamental error. When a mistrial is declared, the trial must start again from the selection of the jury.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • NET ADVANCE AMOUNT: The gross advance amount less the aggregate amount of the actual and estimated transfer expenses required to be disclosed under subdivision (5) of Section 6-11-52. See Alabama Code 6-11-51
  • officer: An individual elected, appointed, or designated as an officer of an entity by the entity's governing authority or under the entity's governing documents. See Alabama Code 10A-1-1.03
  • oppression: Subjecting a person to cruel and unjust hardship in conscious disregard of that person's rights. See Alabama Code 6-11-20
  • OTHER TERMS: Terms not otherwise defined by this chapter shall have the meanings given to them in this title, known as the Alabama Insurance Code. See Alabama Code 27-55-2
  • payee: An individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. See Alabama Code 6-11-51
  • PERIODIC PAYMENTS: Includes both recurring payments and scheduled future lump sum payments. See Alabama Code 6-11-51
  • person: An individual, including the estate of an incompetent or deceased individual, or an organization, whether created by the laws of this state or another state or foreign country, including, without limitation, a general partnership, limited liability partnership, limited partnership, limited liability limited partnership, limited liability company, corporation, professional corporation, nonprofit corporation, professional association, trustee, personal representative, fiduciary, as defined in Section 19-3-150 or person performing in any similar capacity, business trust, estate, trust, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Alabama Code 10A-1-1.03
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • policy: A contract of insurance, certificate, indemnity, suretyship, or annuity issued, proposed for issuance, or intended for issuance by an insurer, including endorsements or riders to an insurance policy or contract. See Alabama Code 27-55-2
  • policy: Any group health benefit plan, contract, or policy, except a disability income policy, and endorsements thereof, specified disease policy, or hospital indemnity policy. See Alabama Code 27-57-1
  • Principal office: means the office (in or out of this state) so designated in the annual report where the principal executive offices of a corporation or foreign corporation are located. See Alabama Code 10A-2A-1.40
  • Proceeding: includes any civil suit and criminal, administrative, and investigatory action. See Alabama Code 10A-2A-1.40
  • QUALIFIED ASSIGNMENT AGREEMENT: An agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Code Title 26, as amended from time to time. See Alabama Code 6-11-51
  • QUALITY ASSURANCE PROVISIONS: Specifications for assessing and improving the quality of care provided by the integrated care networks. See Alabama Code 22-6-220
  • Quorum: The number of legislators that must be present to do business.
  • REASONABLE QUALIFICATIONS: The standard of the reasonable criteria established and consistently used by the respective supplier for Alabama wholesalers that entered into, continued, or renewed an agreement with the supplier during a period of 24 months prior to the proposed transfer of the wholesaler's business, or for Alabama wholesalers who have changed managers or designated managers during a period of 24 months prior to the proposed change in manager or successor manager of the wholesaler's business. See Alabama Code 45-49-23.01
  • Record date: means the date fixed for determining the identity of the corporation's stockholders and their stockholdings for purposes of this chapter. See Alabama Code 10A-2A-1.40
  • Record stockholder: means (i) the person in whose name shares of stock are registered in the records of the corporation, or (ii) the person identified as the beneficial owner of stock in a beneficial ownership certificate pursuant to Section 10A-2A-7. See Alabama Code 10A-2A-1.40
  • RESPONSIBLE ADMINISTRATIVE AUTHORITY: With respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. See Alabama Code 6-11-51
  • RETALIATORY ACTION: Includes, but is not limited to, the refusal to continue an agreement, or a material reduction in the quality of service or in the quantity of products available to a wholesaler under an agreement, which refusal or reduction is not made in good faith. See Alabama Code 45-49-23.01
  • SALES TERRITORY: An area of exclusive sales responsibility for the brand or brands of wine sold by a supplier as designated by an agreement. See Alabama Code 45-49-23.01
  • sbi: The State Bureau of Investigation. See Alabama Code 41-9-590
  • Secretary: means the corporate officer to whom the board of directors has delegated responsibility under Section 10A-2A-8. See Alabama Code 10A-2A-1.40
  • Service of process: The service of writs or summonses to the appropriate party.
  • SETTLED CLAIM: The original tort claim resolved by a structured settlement. See Alabama Code 6-11-51
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • state: Includes, when referring to a part of the United States, a state or commonwealth, and its agencies and governmental subdivisions, and a territory or possession, and its agencies and governmental subdivisions, of the United States. See Alabama Code 10A-1-1.03
  • Stock: means the units into which the proprietary interests in a corporation or foreign corporation are divided. See Alabama Code 10A-2A-1.40
  • Stockholder: means a record stockholder. See Alabama Code 10A-2A-1.40
  • STRUCTURED SETTLEMENT: An arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT AGREEMENT: The agreement, judgment, stipulation, or release embodying the terms of a structured settlement. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT OBLIGOR: With respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. See Alabama Code 6-11-51
  • STRUCTURED SETTLEMENT PAYMENT RIGHTS: Rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where:

    a. See Alabama Code 6-11-51

  • SUBJECT OF ABUSE: A person, including a minor child, against whom an act of abuse has been committed a. See Alabama Code 27-55-2
  • SUBSTANTIAL STOCKHOLDER OR SUBSTANTIAL PARTNER: A stockholder of or partner in the wholesaler who owns an interest of 25 percent or more of the partnership or of the capital stock of a corporate wholesaler. See Alabama Code 45-49-23.01
  • Summons: Another word for subpoena used by the criminal justice system.
  • supplier: A manufacturer or importer of wine licensed by the board. See Alabama Code 45-49-23.01
  • Temporary restraining order: Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held.
  • TERMS OF THE STRUCTURED SETTLEMENT: Include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. See Alabama Code 6-11-51
  • Testify: Answer questions in court.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • transfer: Any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a security agreement entered into with a bank or other insured depository institution or a subsidiary or affiliate of a bank or other insured depository institution (secured party) until and unless the secured party redirects the structured settlement payments to such secured party, or an agent or successor in interest thereof, or otherwise enforces the security interest against the structured settlement payment rights. See Alabama Code 6-11-51
  • TRANSFER AGREEMENT: The agreement providing for a transfer of structured settlement payment rights. See Alabama Code 6-11-51
  • TRANSFER EXPENSES: All expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys' fees, escrow fees, lien recordation fees, judgment and lien search fees, finders' fees, commissions, and other payments to a broker or other intermediary. See Alabama Code 6-11-51
  • transferee: A party acquiring or proposing to acquire structured settlement payment rights through a transfer; provided that the term does not include a secured party who has not received a transfer of the structured settlement payment rights as the term "transfer" is defined in subdivision (18). See Alabama Code 6-11-51
  • trustee: A person who serves as a trustee of a trust, including a real estate investment trust. See Alabama Code 10A-1-1.03
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • United States: includes any district, authority, bureau, commission, department, and any other agency of the United States. See Alabama Code 10A-2A-1.40
  • Unrestricted voting trust beneficial owner: means , with respect to any stockholder rights, a voting trust beneficial owner whose entitlement to exercise the stockholder right in question is not inconsistent with the voting trust agreement. See Alabama Code 10A-2A-1.40
  • Verdict: The decision of a petit jury or a judge.
  • wantonness: Conduct which is carried on with a reckless or conscious disregard of the rights or safety of others. See Alabama Code 6-11-20
  • wholesaler: A wholesaler of wine licensed by the board. See Alabama Code 45-49-23.01
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.