By AFG Newswire August 25, 2014 5:01 p.m.
What Makes a Structured Settlement Transfer Effective
A final court order makes a structured settlement transfer effective. You can't make a deal without going to court and getting approval.
California Insurance Code 10139.5, and what follow, simply state in the opening paragraph, "...has been approved in advance in a final court order based on express written findings by the court..." and it goes on to explain for exactly what the court is looking. For more information, take a look at the plain meaning by googling™ "CA Insurance Code 10139.5".
There used to be a day when court approval was not necessary and people were sometimes not being treated as fairly as they could. So the legislature passed the California Structured Settlement Protection Act to protect consumers wanting to sell structured settlements.
The law is located in the California Insurance Code in Sections 10134 to 10139.5. Under the law, judges have a 15 point plus criteria and checklist to determine if a transfer should be approved.
If even one requirement is not met, a judge can also issue a postponement or a "continuation" for a later date to give you time to correct the mistake, or in other cases even issue a straight denial of your transfer.
Hiring an independent professional advisor that focuses on this type of work is the not only the best way to increase the chance that your transfer will be approved by a Court, but also that your transfer will be approved in one hearing.