Terms Used In Louisiana Civil Code 2778

  • 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.
  • Contract: A legal written agreement that becomes binding when signed.

An annuity contract is an agreement by which a party delivers a thing to another who binds himself to make periodic payments to a designated recipient.  The recipient’s right to these payments is called an annuity.

A contract transferring ownership of a thing other than money for a certain or determinable price payable over a term is not an annuity contract.

Acts 2012, No. 258, §1, eff. Jan. 1, 2013.