by John Darer® CLU ChFC MSSC RSP
A qualified assignment is a legal transaction that is used, with the consent of a Plaintiff, to transfer an obligation to make future periodic payments of damages to a Plaintiff, from a Defendant, Insurer or Qualified Settlement Fund, to a qualified assignment company
The qualified assignment company receives funds from the Defendant, Insurer or Qualified Assignment Company which it uses to purchase a “qualified funding asset”. Subject to the conditions of Section 130(d), the qualified funding asset can either be an annuity or obligations of the United States government.
The qualified funding asset (whether annuities or US government obligations) is held by the qualified assignment company
Qualified Assignments are only used with workers compensation claims and cases involving personal physical injury or physical sickness.
Structured settlements are also used in non physical injury cases where damages are taxable. In those cases a non qualified assignment is used. As is the case with their qualified assignment cousin, the funding asset is owned or held by the assignee.
You may find John Darer’s video “What is a Qualified Assignment? Structured Settlements 101‘ to be helpful.
>
Further Resources from 4structures.com
What is a Qualified Assignment?
Leave a Reply