State Structured Settlement Protection Acts Disfavor Transfers of Settlement Payments, Notwithstanding Wrong-Headed Comments

State Structured Settlement Protection Acts Disfavor Transfers of Settlement Payments, Notwithstanding Wrong-Headed Comments

Secondary Insurance Market Blog’s authors often come across statements that are contrary to the facts in the world of secondary insurance markets.

While there are too many such comments to be concerned with them all, occasionally it makes sense to address them.

For instance, the statement that a structured settlement protection act “favors” transfers of structured settlement payment rights is inconsistent with an accurate understanding of such statutes, some of which are based on legislative proposals expressly providing that these laws are designed to limit or curtail such secondary market transactions.

So, there are many wrong-headed comments being made about secondary insurance markets.  And one such comment is to say that a law designed to limit a type of transaction actually shows “favor” for those transactions.  Those who are well-informed will know, in fact, that the opposite is the case.

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