Full text and statutory guidelines for the Model State Structured Settlement Protection Act.
The Maine Model State Structured Settlement Protection Act is a legislation designed to protect the rights and interests of individuals who have been awarded structured settlements. Structured settlements are financial arrangements where future payments are made to the recipient over a specified period of time, typically as a result of a personal injury or other legal claim. The Maine Model Act serves as a guideline for other states to implement similar laws to safeguard the structured settlement process and ensure the fair treatment of all parties involved. It addresses various aspects of structured settlements, including the transfer of payment rights, disclosure requirements, court approval procedures, and the regulation of structured settlement purchase companies. Key provisions of the Maine Model Act include: 1. Transfer of Payment Rights: The Act establishes guidelines for the transfer of structured settlement payment rights, emphasizing the importance of court approval for such transfers. This ensures that the recipient's rights are protected and that any proposed transfer is fair and reasonable. 2. Disclosure Requirements: The Act mandates comprehensive disclosure to the recipient of a structured settlement, ensuring that they have a clear understanding of the terms, conditions, and consequences of the settlement. The recipient must be fully aware of the financial implications before entering into any agreements related to the structured settlement. 3. Court Approval Procedures: The Act sets forth a detailed process for obtaining court approval of any transfer of structured settlement payment rights. This involves filing a petition with the court, providing notice to interested parties, and demonstrating that the transfer is in the best interest of the recipient and their dependents. 4. Regulation of Structured Settlement Purchase Companies: The Act aims to regulate and oversee structured settlement purchase companies, also known as factoring companies, which offer lump sum cash payments to recipients in exchange for their future payment rights. It includes provisions to protect recipients from potential exploitation and ensure that they receive fair value for their structured settlement assets. It is important to note that the Maine Model Act serves as a framework for other states to tailor their own structured settlement protection laws. As such, there may be variations in the implementation and specific provisions of the Act across different states. However, the underlying objective remains the same: to safeguard the financial interests and rights of structured settlement recipients.
