As used in this article, unless the context otherwise
requires:
(1) Annuity issuer means an insurer that has issued a contract to fund
periodic payments under a structured settlement.
(2) Dependent means a payee's spouse, minor child, or any person for
whom the payee is legally obligated to provide support, including maintenance.
(3) Discounted present value 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.
(4) Gross advance amount means the sum payable to the payee or for the
payee's account as consideration for a transfer of structured settlement payment
rights before any reductions for transfer expenses or other deductions are made
from such consideration.
(5) Independent professional advice means advice of an attorney, certified
public accountant, actuary, or other licensed professional adviser.
(6) Interested parties means the payee, any beneficiary irrevocably
designated under the annuity contract to receive payments following the payee's
death, the annuity issuer, the structured settlement obligor, and any other party
who has continuing rights or obligations under such structured settlement. If a
delegate child support enforcement unit is enforcing a payee's legal obligation to
support his or her dependent children, pursuant to section 26-13-105, C.R.S.,
interested parties shall also include the delegate child support enforcement unit.
(7) Net advance amount means the gross advance amount less the
aggregate amount of the actual and estimated transfer expenses required to be
disclosed under section 13-23-103.
(8) Payee means an individual who is receiving tax-free payments under a
structured settlement and who proposes to make a transfer of payment rights
thereunder.
(9) Periodic payment means a recurring payment or a scheduled future
lump-sum payment.
(10) Qualified assignment agreement means an agreement providing for a
qualified assignment within the meaning of section 130 of the federal Internal
Revenue Code of 1986, as amended.
(11) Responsible administrative authority means any government authority
vested by law with exclusive jurisdiction over the settled claim resolved by such
structured settlement.
(12) Settled claim means the original tort claim resolved by a structured
settlement.
(13) Structured settlement means an arrangement for periodic payment of
damages for personal injuries or sickness established by settlement or judgment in
resolution of a tort claim.
(14) Structured settlement agreement means the agreement, judgment,
stipulation, or release embodying the terms of a structured settlement.
(15) Structured settlement obligor means the party who has the continuing
obligation to make periodic payments to the payee under a structured settlement
agreement or a qualified assignment agreement.
(16) Structured settlement payment right means the right to receive
periodic payments under a structured settlement, whether from the structured
settlement obligor or the annuity issuer, where:
(a) The payee is domiciled in Colorado or the domicile or principal place of
business of the structured settlement obligor or the annuity issuer is Colorado; or
(b) The structured settlement agreement was approved by a court or
responsible administrative authority in Colorado; or
(c) The structured settlement agreement is expressly governed by the laws
of Colorado.
(17) Terms of the structured settlement means the terms of the structured
settlement agreement, the annuity contract, a qualified assignment agreement, and
any order or other approval of a court or responsible administrative authority or
other government authority that authorized or approved such structured
settlement.
(18) Transfer means a sale, assignment, pledge, hypothecation, or other
alienation or encumbrance of a structured settlement payment right made by a
payee for consideration; except that the term transfer does not include the
creation or perfection of a security interest in a structured settlement payment
right 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.
(19) Transfer agreement means the agreement providing for a transfer of a
structured settlement payment right.
(20) Transferee means a party acquiring or proposing to acquire a
structured settlement payment right through a transfer.
(21) Transfer expenses 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, attorney fees,
escrow fees, lien recordation fees, judgment and lien search fees, finders' fees,
commissions, and other payments to a broker or other intermediary. Transfer
expenses does not include preexisting obligations of the payee payable for the
payee's account from the proceeds of a transfer.