Maryland Code, COURTS AND JUDICIAL PROCEEDINGS 5-1101
Terms Used In Maryland Code, COURTS AND JUDICIAL PROCEEDINGS 5-1101
- 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.
- 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
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- including: means includes or including by way of illustration and not by way of limitation. See
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- 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.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
- 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: means :
(1) a state, possession, territory, or commonwealth of the United States; or
(2) the District of Columbia. See - Statute: A law passed by a legislature.
- 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.
(b) “Discounted present value” means the fair present value of future payments, as determined by discounting 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.
(c) “Gift” means a transfer to a payee of anything of economic value, regardless of form, as an inducement to enter into a transfer agreement or pursue a transfer, except:
(1) The actual cost, not to exceed $100, of the payee’s transportation to a hearing concerning a petition filed under § 5-1102 of this subtitle; and
(2) The costs of postage, overnight delivery services, document retrieval fees, and notary services associated with the filing of a petition under § 5-1102 of this subtitle.
(d) “Independent professional advice” means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser:
(1) Who is engaged by a payee to render advice concerning whether a proposed transfer of structured settlement payment rights would be in the best interest of the payee, taking into account the welfare and support of the payee’s dependents;
(2) Who is not affiliated with or compensated by the transferee of the transfer; and
(3) Whose compensation is not affected by whether a transfer occurs.
(e) “Interested parties” means the payee, each beneficiary 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 a structured settlement.
(f) “Payee” means an individual who receives damage payments that are not subject to income taxation under a structured settlement and proposes to make a transfer of payment rights.
(g) “Registrant” means a person registered with the Attorney General under this subtitle.
(h) “Responsible administrative authority” means a government authority vested with exclusive jurisdiction over the settled claim resolved by a structured settlement.
(i) (1) “Structured settlement” means an arrangement for periodic payment of damages for personal injury established by a settlement or judgment in resolution of a tort claim.
(2) “Structured settlement” does not include an arrangement for periodic payment of damages for personal injury established by a judgment by confession.
(j) “Structured settlement agreement” means an agreement, judgment, stipulation, or release embodying the terms of a structured settlement.
(k) “Structured settlement obligor” means a party who has the continuing periodic payment obligation to the payee under a structured settlement agreement or a qualified assignment agreement.
(l) “Structured settlement payment rights” means the rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer, if:
(1) The payee resides in this State;
(2) The structured settlement agreement was approved by a court or responsible administrative authority in this State, and the payee does not reside in another state or jurisdiction that has enacted a statute providing for entry of a qualified order as defined in 26 U.S.C. § 5891(b)(2); or
(3) The settled claim was pending before a court of this State when the parties entered into the structured settlement agreement, and the payee does not reside in another state or jurisdiction that has enacted a statute providing for entry of a qualified order as defined in 26 U.S.C. § 5891(b)(2).
(m) “Terms of the structured settlement” includes the terms of the structured settlement agreement, the annuity contract, a qualified assignment, and an order or approval of a court or responsible administrative authority authorizing or approving a structured settlement.
(n) “Transfer” means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration.
(o) “Transfer agreement” means the agreement providing for the transfer of structured settlement payment rights from a payee to a transferee.
(p) “Transferee” means a person acquiring or proposing to acquire structured settlement payment rights through a transfer.