Sec. 23. (a) With the consent of the claimant, a political subdivision may compromise or settle a claim or suit by means of a structured settlement under this section.

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Terms Used In Indiana Code 34-13-3-23

  • 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.
  • 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.
     (b) A political subdivision may discharge settlement of a claim or suit brought under this chapter by:

(1) an agreement requiring periodic payments by the political subdivision over a specified number of years;

(2) the purchase of an annuity;

(3) by making a “qualified assignment” of the liability of the political subdivision as defined by the provisions of 26 U.S.C. § 130(c);

(4) payment in a lump sum; or

(5) any combination of subdivisions (1) through (4).

     (c) The present value of a structured settlement shall not exceed the statutory limits set forth in section 4 of this chapter; however, the periodic or annuity payments may exceed these statutory limits. The present value of any periodic payments may be determined by discounting the periodic payments by the same percentage as that found in Moody’s Corporate Bond Yield Average Monthly Average Corporates, as published by Moody’s Investors Service, Incorporated.

[Pre-1998 Recodification Citation: 34-4-16.5-21.]

As added by P.L.1-1998, SEC.8.

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