§ 2480dd. Approval of transfers of structured settlement payment rights
(a) No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by the court that:
(1) the transfer is in the best interest of the payee taking into account the welfare and support of the payee's dependents, considering all relevant factors, including:
(A) the payee's ability to understand the financial terms and consequences of the transfer;
(B) the payee's capacity to meet his or her financial obligations, including the potential need for future medical treatment;
(C) the need, purpose, or reason for the transfer; and
(D) whether the transfer is fair and reasonable, considering the discount rate used to calculate the gross advance amount, the fees and expenses imposed on the payee, and whether the payee obtained more than one quote for the same or a substantially similar transfer.
(2)(A) the payee has been advised in writing by the transferee to seek independent professional advice regarding the financial advisability of the transfer and the other financial options available to the payee, if any, and:
(B)(i) that the payee has in fact received such advice; or
(ii) that such advice is unnecessary for good cause shown.
(3) the transfer does not contravene any applicable statute or the order of any court or other government authority.
(b) Any agreement to transfer future payments arising under a workers' compensation claim is prohibited.
(c) At the hearing on the transfer the court may, in its sole discretion, continue the hearing and require the payee to seek independent professional advice if the court determines that obtaining such advice should be required based on the circumstances of the payee or the terms of the transaction. If the court determines that independent professional advice should be required, the court may order that the costs incurred by a payee for independent professional advice be paid by the transferee, the payee, or another party, provided that the amount to be paid by the transferee shall not exceed $1,500.00. (Added 2011, No. 168 (Adj. Sess.), § 1.)