Michigan Structured Settlement Law

Provisions And Actions Of The Michigan Structured Settlement Law

Michigan Chapter 691, the Michigan Structured Settlement Protection Act, is a law designed expressly for the protection of people who hold rights to and seek to sell structured settlement payments in Michigan. It is a law with a tri-fold purpose that definitively states the process, procedures, and rights for selling settlement payments in the state.

There are three basic functions of the law.

Establishing Conditions For Structured Settlement Sales In MI

The first function of the act, as defined by the Michigan state structured settlement protection act, is to establish conditions to the transfer of structured settlement rights; these conditions afford the opportunity for the state to set regulations for the sale of structured settlements. Conditions include things like

Requiring disclosure (rates, values, and monetary terms of the deal-the details that show the seller what they are getting and what they are giving) Seller rights Itemization of buyer fees and commissions, costs paid by the seller (as applicable) Advisement by independent professionals Checkpoints to determine the financial benefit of the purchase (showing that the sale is in the seller's best interest and that it will not create a financial hardship)

The conditions segment of the law is the part that affords the most protection to sellers. Before the law, there was nothing to require buyers to make such disclosures, but with it the seller has clear and defined rights to information that must be provided to them. All of this serves to insure that the seller is kept informed and educated throughout the sale.

Establishing A Procedure For Settlement Sale Approval

The second function of the MI structured settlement law is to "establish a procedure for approval of the transfer of structured settlement rights;" the process of approval is basically confirmation that all of the conditions in the first action are met.

The process of approval is a defined procedure which states what each party must do and how to apply to the court for approval. This is a procedure that confirms compliance on the part of the buyer, and ensures the benefit of the deal for the seller. The procedure is a means to an end, but the act of approval is really a way to protect the seller.

Create Jurisdiction Over Michigan Structured Settlement Sales

The third and final action of the law is to "create circuit court jurisdiction for proceedings for approval of structured settlement rights." This simply makes it legal for Michigan courts to preside over MI structured settlement sales. It is an act of granting the authority to protect the seller by establishing the chain of approval.

The tri-fold purpose of Michigan's structured settlement protection law really comes down to one thing- seller protection. By taking these actions Michigan has established a way to support sellers of structured settlement payments and insure the integrity of the deal.