47th State Enacts Structured Settlement Transfer Law

North Dakota became the newest state to add a structured settlement factoring law to its books, with the enactment of HB 1205.  Signed by Governor John Hoeven on March 24th, the new transfer law will apply to all North Dakota factoring contracts entered into after July 31, 2009. 

Click here for the full text of HB 1205.

North Dakota's structured settlement factoring law is substantially based on the model act adopted by the National Conference of Insurance Legislators (NCOIL).  The sponsors of the bill, Representatives Keiser and Wald, along with Senator Klein, are all members of NCOIL.  NCOIL adopted its first model structured settlement transfer act in July 2000.  The present version, which now forms the basis for 37 state transfer laws, was adopted by NCOIL in 2004. 

Wisconsin, Vermont and New Hampshire remain the only states without structured settlement transfer statutes.  However, residents of these states can sell some or all of their future payments pursuant to the state transfer laws in effect in the state where their annuity issuer or owner reside, as indicated in Internal Revenue Code § 5891(b)(3). 

We welcome questions or comments about this story or structured settlement factoring in general.  You may comment here, or send your comments to Matt Bracy at mbracy@setcap.com. 

Comments

[structured settlement]

The law now demands the court approval just before selling structured settlement repayments. A number of formalities have to be done before you can receive any cash.

[structured settlement]

The law now demands the court approval just before selling structured settlement repayments. A number of formalities have to be done before you can receive any cash.

[structured settlement]

The law now demands the court approval just before selling structured settlement repayments. A number of formalities have to be done before you can receive any cash.