A. Funding authorized or required for payment of a judgment for periodic installments shall be approved by the court as sufficient to guarantee financial solvency and be in one or more of the following forms:

Terms Used In Arizona Laws 12-588

  • 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.
  • Claimant: means a person suffering bodily injury, a person claiming on behalf of or as a result of bodily injury to another person, the representative of the estate of a deceased person or a beneficiary of a wrongful death action. See Arizona Laws 12-581
  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Qualified insurer: means an insurer, self-insurer, plan or arrangement approved by the director of the department of insurance and financial institutions. See Arizona Laws 12-581

1. An annuity contract issued by one or more qualified insurers.

2. An agreement by one or more qualified insurers to fund the judgment.

3. Any other form of funding which the court approves and to which the claimant consents.

B. Funding under this section qualifies as a required supersedeas bond.

C. In the event of a qualified assignment under section 130 of the internal revenue code of 1986, as amended, the qualified assignee and any qualified insurer shall be jointly and severally liable but the qualified insurer’s obligation shall be the primary obligation.

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