Glossary


Glossary


Acknowledgement Letter-


is written confirmation from the annuity issuer that they know that you have sold the payments to someone else.

Advance-


a small loan advanced to the client to help deal with immediate, urgent expenses, while your sale transaction is being processed.

Affidavit-


is a formal sworn statement signed by the annuitant and witnessed by a notary public, and presented to the court.

Annuitant-


a person who is entitled to receive payments from an annuity.

Annuity-


a legal obligation of an insurance company to pay someone specific payments for a specific period of time and / or for life.

Annuity Issuer-


the insurance company that is legally obligated to pay the payments to you.

Beneficiary-


a person or legally entity that receives the payments from the annuity in the event that the annuitant dies.

Benefits Letter-


a letter from the insurance company listing the payments that the client is entitled to receive.

Disclosure Statement-


a document which sets out certain financial terms of the transaction.

File Stamped Court Order-


a court issued by the judge who has approved the transaction and which has been time and date stamped by the court office.

Future Value-


is the amount of money that an investment with a fixed, compounded interest rate will grow to by some future date. Since money has time value, the future value will be greater than the present value.

Guaranteed Payments-


payments that will be made for a guaranteed payment of time to either the annuitant or to a beneficiary, even if the annuitant has died.

Hearing Date-


a court hearing where you, the client, appear in court to explain the sale of your structured settlement annuity payments and a decision is made by the judge to approve your transaction.

Independent Legal Representation (ILA)-


provided by your legal advisor who has spoken with you regarding your intent to sell the annuity payments.

Investment Annuity-


a legal obligation by an insurance company to pay you specific future payments for a specific period of time in return for an investment made by you.

Life Contingent Payments-


payments that will be paid only if the payee or annuitant is still living.

Lump Sum-


a single payment paid at one time, instead of a series of payments paid over a period of time.

Payee-


a person who is entitled to receive payments from an annuity.

Payment Stream-


the future payments paid to you, the client.

Policy-


the legal contract with the insurance company describing what payments the insurance company will pay and when it will pay them.

Policy Owner-


the insurance company who is also part of the annuity policy contract and who has to make the payments if the annuity issuer does not pay them.

Present Value-


is the current value of a future sum of money or stream of cash flows, calculated at a specific interest rate or rate of return.

Qualified Assignment-


is the document in which the defendant and its insurance company assign the financial obligation to make payments to the plaintiff to another insurance company. This agreement is necessary to meet the requirements of a tax free structured settlement as set out in the internal Revenue Code.

Sale & Assignment Agreement-


a legally binding contract which sets out the terms of the agreement between seller and buyer.

Search Results-


results from a credit, bankruptcy and lien search.

Settlement Agreement-


is a document that sets out the terms of the injury claim settlement. It will also set out the payments that the plaintiff will be receiving from the settlement.

Stipulation-


is a legal binding document between all interested parties (annuitant, annuity issuer, transferee, and final assignee). The stipulation contains details of the rights and obligations of all the interested parties, and it must be fully signed before the annuity issuer will transfer the payments and before the transaction can fund.

Structured Settlement Annuity-


a lawsuit settlement that pays someone a series of future payments over a period of time.



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