Full text and statutory guidelines for the Model State Structured Settlement Protection Act.
The Arizona Model State Structured Settlement Protection Act is a legislation enacted in Arizona to provide a legal framework for the protection of structured settlements. A structured settlement typically refers to a payment arrangement where a victim of a personal injury, medical malpractice, or other legal claim agrees to receive periodic payments instead of a lump sum. The Arizona Model State Structured Settlement Protection Act serves as a model for other states in defining the guidelines and regulations to safeguard the interests of individuals receiving structured settlement payments. It ensures that the settlement payments are not undermined or jeopardized by unethical practices or financial risks. Key provisions of the Arizona Model State Structured Settlement Protection Act include: 1. Consent: The act requires the written consent of the recipient of the structured settlement payment before any transfer of payment rights can occur. This provision ensures that the individual's rights and financial stability are protected. 2. Court Approval: Any transfer of structured settlement payment rights must be approved by a court. This requirement ensures that the transfer is fair and reasonable, providing adequate protection for the recipient. 3. Disclosure: The act mandates full disclosure of all relevant information, such as the terms of the transfer, fees involved, and the impact of the transfer on the recipient's financial situation. This provision ensures transparency in the transfer process. 4. Independent Professional Advice: The act encourages the recipient to seek independent professional advice regarding the structured settlement transfer. This provision helps the individual make an informed decision about the transfer, considering their long-term financial well-being. 5. Best Interest Standard: The court, when considering the transfer, must determine whether it is in the best interest of the recipient. This standard ensures that the recipient's financial security and well-being are the primary considerations. Different types of the Arizona Model State Structured Settlement Protection Act may include variations based on specific state requirements or additional provisions to enhance the protection of structured settlement recipients. Some possible variations or versions of the Arizona Model State Structured Settlement Protection Act include: 1. Minor's Protection: Some states may have specific provisions in their legislation that address the protection of structured settlement payments for minors, ensuring their financial security until they reach adulthood. 2. Public Benefit Preservation: Certain state laws may incorporate clauses to protect structured settlements involving public benefits, such as Medicaid or Supplemental Security Income (SSI), to ensure that the recipient's eligibility for these benefits remains intact. 3. Attorney Representation: Some states may require the involvement of an attorney throughout the structured settlement transfer process to provide additional legal guidance and protection. In summary, the Arizona Model State Structured Settlement Protection Act serves as a guiding framework for states in enacting legislation to protect the interests and financial security of individuals receiving structured settlement payments. It ensures transparency, court approval, and informed decision-making through provisions like consent, disclosure, independent advice, and best interest standards. Various jurisdictions may adopt variations of this model act to address specific needs or circumstances of structured settlement recipients.
