                                 CODE OF VIRGINIA

DEFINITIONS (§ 59.1-475)

For purposes of this chapter:		&#8220;Annuity issuer&#8221; means an insurer
that has issued a contract to fund periodic payments under a structured
settlement.		&#8220;Applicable federal rate&#8221; means the most recently
published applicable federal rate for determining the present value of an
annuity, as prescribed by the U.S. Internal Revenue Service pursuant to 26
U.S.C. § 7520, as amended.		&#8220;Assignee&#8221; means a party acquiring or
proposing to acquire structured settlement payment rights directly or indirectly
from a transferee of such rights.		&#8220;Dependents&#8221; include a
payee&#8217;s spouse and minor children and all other persons for whom the payee
is legally obligated to provide support, including alimony.		&#8220;Discounted
present value&#8221; means the present value of future payments determined by
discounting such 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.		&#8220;Gross advance
amount&#8221; means the sum payable to the payee or for the payee&#8217;s
account as consideration for a transfer of structured settlement payment rights
before any reductions for transfer expenses or other deductions to be made from
such consideration.		&#8220;Independent professional advice&#8221; means advice
of an attorney, certified public accountant, actuary or other licensed
professional adviser.		&#8220;Interested parties&#8221; means, with respect to
any structured settlement:

1. The payee;

2. Any beneficiary irrevocably designated under the annuity contract to receive
payments following the payee&#8217;s death or, if such beneficiary is a minor,
the designated beneficiary&#8217;s parent or guardian;

3. The annuity issuer;

4. The structured settlement obligor; and

5. Any other party to such structured settlement that has continuing rights or
obligations to receive or make payments under such structured settlement.
			&#8220;Net advance amount&#8221; means the gross advance amount less the
aggregate amount of the actual and estimated transfer expenses required to be
disclosed under subdivision 5 of &#xA7; 59.1-475.1.			&#8220;Payee&#8221; means
an individual who is receiving tax free payments under a structured settlement
and proposes to make a transfer of payment rights thereunder.			&#8220;Periodic
payments&#8221; includes both recurring payments and scheduled future lump sum
payments.			&#8220;Qualified assignment agreement&#8221; means an agreement
providing for a qualified assignment within the meaning of &#xA7; 130 of the
United States Internal Revenue Code, United States Code Title 26, as amended
from time to time.			&#8220;Settled claim&#8221; means the original tort claim
resolved by a structured settlement.			&#8220;Structured settlement&#8221; means
an arrangement for periodic payment of damages for personal injuries or sickness
established by settlement or judgment in resolution of a tort
claim.			&#8220;Structured settlement agreement&#8221; means the agreement,
judgment, stipulation, or release embodying the terms of a structured
settlement.			&#8220;Structured settlement obligor&#8221; means, with respect to
any structured settlement, a party that has a continuing obligation to make
periodic payments to the payee under a structured settlement agreement or a
qualified assignment agreement.			&#8220;Structured settlement payment
rights&#8221; means rights to receive periodic payments under a structured
settlement, whether from the structured settlement obligor or the annuity
issuer, where the payee is domiciled in the Commonwealth or the structured
settlement agreement was approved by a court in the Commonwealth.			&#8220;Terms
of the structured settlement&#8221; include, with respect to any structured
settlement, the terms of the structured settlement agreement, the annuity
contract, any qualified assignment agreement, and any order or other approval of
any court or other government authority that authorized or approved such
structured settlement.			&#8220;Transfer&#8221; means any sale, assignment,
pledge, hypothecation, or other alienation or encumbrance of structured
settlement payment rights made by a payee for consideration; however, the term
&#8220;transfer&#8221; shall not include the creation or perfection of a
security interest in structured settlement payment rights under a blanket
security agreement entered into with an insured depository institution, in the
absence of any action to redirect the structured settlement payments to such
insured depository institution, or an agent or successor in interest thereof, or
otherwise to enforce such blanket security interest against the structured
settlement payment rights.			&#8220;Transfer agreement&#8221; means the
agreement providing for transfer of structured settlement payment
rights.			&#8220;Transfer expenses&#8221; means all expenses of a transfer that
are required under the transfer agreement to be paid by the payee or deducted
from the gross advance amount, including, without limitation, court filing fees,
attorneys&#8217; fees, escrow fees, lien recordation fees, judgment and lien
search fees, finders&#8217; fees, commissions, and other payments to a broker or
other intermediary; however, &#8220;transfer expenses&#8221; shall not include
preexisting obligations of the payee payable for the payee&#8217;s account from
the proceeds of a transfer.			&#8220;Transferee&#8221; means a party acquiring
or proposing to acquire structured settlement payment rights through a transfer.

HISTORY: 1999, c. 993; 2001, c. 537; 2006, c. 786; 2016, cc. 273, 739.