§ 32-03.4-01 — Definitions

North Dakota § 32-03.4-01

• Jurisdiction: North Dakota
• Title 32: Judicial Remedies
• Ch. 32-03.4: Structured Settlement Transfers

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For purposes of this chapter:
1. "Annuity issuer" means an insurer that has issued a contract to fund periodic
payments under a structured settlement.
2. "Dependent" includes a payee's spouse and minor children and all other persons for
whom the payee is legally obligated to provide support, including alimony or support.
3. "Discounted present value" means the present value of future payments determined
by discounting those 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 to be made from such
consideration.
5. "Independent professional advice" means advice of an attorney, certified public
accountant, actuary, or other licensed professional adviser:
a. Who is engaged by a claimant or payee to render advice concerning the legal,
tax, and financial implications of a structured settlement or a transfer of structured
settlement payment rights;
b. Who is not in any manner affiliated with or compensated by the defendant in the
settlement or the transferee of the transfer; and
c. Whose compensation for rendering the advice is not affected by whether a
settlement or transfer occurs or does not occur.
6. "Interested party" means, with respect to any structured settlement, 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 that has continuing rights or obligations under the structured
settlement.
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
subsection 5 of section 32-03.4-02.
8. "Payee" means an individual who is receiving tax-free payments under a structured
settlement and proposes to make a transfer of payment rights under the structured
settlement.
9. "Periodic payments" includes both recurring payments and scheduled future lump sum
payments.
10. "Qualified assignment agreement" means an agreement providing for a qualified
assignment within the meaning of section 130 of the Internal Revenue Code
[26 U.S.C. 130], as amended.
11. "Settled claim" means the original tort claim or workers' compensation claim resolved
by a structured settlement.
12. "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 or for periodic payments in settlement of a workers' compensation claim.
13. "Structured settlement agreement" means the agreement, judgment, stipulation, or
release embodying the terms of a structured settlement.
14. "Structured settlement obligor" means, with respect to any structured settlement, the
party that has the continuing obligation to make periodic payments to the payee under
a structured settlement agreement or a qualified assignment agreement.
15. "Structured settlement payment rights" means rights to receive periodic payments
under a structured settlement, whether from the structured settlement obligor or the
annuity issuer, if at least one of the following applies:

a. The payee is domiciled in, or the domicile or principal place of business of the
structured settlement obligor or the annuity issuer is located in, this state;
b. The structured settlement agreement was approved by a court in this state; or
c. The structured settlement agreement is expressly governed by the laws of this
state.
16. "Terms of the structured settlement" includes, 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
governmental authority that authorized or approved such structured settlement.
17. "Transfer" means any sale, assignment, pledge, hypothecation, or other alienation or
encumbrance of structured settlement payment rights made by a payee for
consideration. The term does not include the creation or perfection of a security
interest in structured settlement payment rights under a blanket security agreement
entered with an insured depository institution, in the absence of any action to redirect
the structured settlement payments to the insured depository institution, or an agent or
successor in interest thereof, or otherwise to enforce the blanket security interest
against the structured settlement payment rights.
18. "Transfer agreement" means the agreement that provides for a transfer of structured
settlement payment rights.
19. "Transfer expenses" means all expenses of a transfer which are required under the
transfer agreement to be paid by the payee or deducted from the gross advance
amount, including court filing fees, attorney's fees, escrow fees, lien recordation fees,
judgment and lien search fees, finder's fees, commissions, and other payments to a
broker or other intermediary. The term does not include pre-existing obligations of the
payee payable for the payee's account from the proceeds of a transfer.
20. "Transferee" means a party acquiring or proposing to acquire structured settlement
payment rights through a transfer.