Sell Structured Settlement Structured Settlement Basics 2

Question 1

What term describes the entity that originally owed payments under a structured settlement?

Accepted Answer

Obligor

Answer

Assignee

Answer

Payee

Answer

Annuitant

Question 2

Which party in a structured settlement is the person entitled to receive the payments?

Accepted Answer

Payee

Answer

Obligor

Answer

Annuity issuer

Answer

Factoring company

Question 3

What does it mean when a structured settlement includes a 'life contingent' payment?

Accepted Answer

Payments continue only as long as the payee is alive

Answer

Payments stop if interest rates change

Answer

Payments are adjusted for inflation annually

Answer

Payments are guaranteed regardless of any conditions

Question 4

A 'guaranteed' period in a structured settlement means:

Accepted Answer

A set number of payments will be made regardless of whether the payee lives or dies

Answer

Payments will increase each year

Answer

The insurance company guarantees high returns

Answer

The government insures the payments

Question 5

Which federal law specifically governs the assignment of structured settlement payment rights to a factoring company?

Accepted Answer

The Internal Revenue Code Section 5891

Answer

The Structured Settlement Protection Act

Answer

The Securities Exchange Act

Answer

The Fair Debt Collection Practices Act

Question 6

What is the primary purpose of anti-assignment clauses found in many structured settlement agreements?

Accepted Answer

To prevent the payee from selling or transferring payment rights

Answer

To protect the insurance company from investment losses

Answer

To require court approval for payment increases

Answer

To allow the defendant to reclaim overpayments