Structured Settlement Industry Submits Comments on Proposed Rule

Structured Settlement Industry Submits Comments on Proposed Rule On Pennsylvania Structured Settlement Protection Act

In February 2000, Pennsylvania enacted structured settlement protection legislation governing sales by injury victims of rights to receive future payments under structured settlements. Like the corresponding statutes that have been enacted in 45 other States, the Pennsylvania Structured Settlement Protection Act (“SSPA”) requires that any proposed transfer of payment rights under a structured settlement receive advance court approval based on a finding that an express finding that the transfer will be in the best interest of the injury victim and his or her dependents.

Earlier this summer the Civil Procedural Rules Committee of the Pennsylvania Supreme Court published for comment a proposed new rule designed to give Pennsylvania courts additional information to assist them in determining whether proposed transfers will, or will not, pass the “best interest” test.

Through its general counsel, NSSTA has submitted detailed comments on the proposed Rule. To access the NSSTA submission, please click here.

Proposed new Pennsylvania Rule 229.2 would specify many of the contents of any petition for approval of a transfer of payment rights under the Pennsylvania SSPA, including an affidavit of the payee (i.e., the injury victim) containing detailed information about the payee’s financial status.

The Insurance Federation of Pennsylvania has filed comments addressing some of the same issues and endorsing NSSTA’s comments. To access the Insurance Federation’s comments, please click here.

Recognized by Congress since 1982, structured settlements provide long-term financial security to injury victims and their families through a stream of payments tailored to their needs.

The National Structured Settlements Trade Association is an organization of more than 600 licensed insurance brokers, insurance companies and other members who are involved in establishing structured settlements to resolve personal injury and workers' compensation claims.