[ 676‑3]  Approval of transfers of structured settlement payment rights.  No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights, unless the transfer has been approved in advance in a final court order or order of a responsible administrative authority based upon express findings by the court or responsible administrative authority that:

Terms Used In Hawaii Revised Statutes 676-3

  • Annuity issuer: means an insurer that has issued a contract to fund periodic payments under a structured settlement. See Hawaii Revised Statutes 431:11-117
  • Dependents: include a payee's spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. See Hawaii Revised Statutes 431:11-117
  • Independent professional advice: means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. See Hawaii Revised Statutes 431:11-117
  • Payee: means an individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of the payment rights. See Hawaii Revised Statutes 431:11-117
  • Responsible administrative authority: means , with respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by the structured settlement. See Hawaii Revised Statutes 431:11-117
  • Structured settlement: means an arrangement for periodic payment of damages for personal injuries or sickness established by settlement or judgment in resolution of a tort claim. See Hawaii Revised Statutes 431:11-117
  • Structured settlement obligor: means , 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 Hawaii Revised Statutes 431:11-117
  • Structured settlement payment rights: means rights to receive periodic payments under a structured settlement, whether from the structured settlement obligor or the annuity issuer, where:

         (1)  The payee is domiciled in, or the domicile or principal place of business of the structured settlement obligor or the annuity issuer is located in, this State;

         (2)  The structured settlement agreement was approved by a court or responsible administrative authority in this State; or

         (3)  The structured settlement agreement is expressly governed by the laws of this State. See Hawaii Revised Statutes 431:11-117

  • Transfer: means 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 "transfer" shall not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to such insured depository institution, or an agent or successor in interest, or otherwise to enforce the blanket security interest against the structured settlement payment rights. See Hawaii Revised Statutes 431:11-117
  • Transferee: means a party acquiring or proposing to acquire structured settlement payment rights through a transfer. See Hawaii Revised Statutes 431:11-117

     (1)  The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents;

     (2)  The payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received the advice or knowingly waived the advice in writing; and

     (3)  The transfer does not contravene any applicable statute or the order of any court or other government authority.