This S2KM blog post highlights important revisions to Chapter 1 ("Introduction and History") contained in Release 40 of "Structured Settlements and Periodic Payment Judgments" (S2P2J) co-authored by Daniel W. Hindert, Joseph J. Dehner and Patrick J. Hindert (author of S2KM's blog) and published by Law Journal Press. For additional S2KM blog posts about S2P2J Release 40, see: Release 40-Introduction.
As demonstrated by the embedded diagram (click to enlarge), a structured settlement can be a complex legal and financial transaction. This complexity results from many applicable statutory and regulatory rules enacted by states and the federal government during the past 30 years. Some of these newer rules (for examples: IRC 5891(c) and many of the 46 state structured settlement protection statutes) include statutory definitions. For attorneys and consultants who work with structured settlements, understanding the sources, significance and restrictions of these definitions represents a professional requirement and challenge.
While referencing statutory definitions, S2P2J Release 40 revisits and revises the book's definition for structured settlement. As used in S2P2J, "structured settlement" describes "the resolution of tort cases that are settled by a claimant's accepting payments over time rather than a single sum". Compare this definition with the definition for periodic payment which S2P2J defines as "a commitment to make future payments to a claimant according to agreed schedule on specific terms." These two definitions highlight the focus and scope of S2P2J which include the resolution "of injury claims that involve non-taxable recoveries arising from tort cases where physical personal injury or physical sickness has occurred or where a workers' compensation system provides funds to injured workers." They also point out the need for standard definitions for structured settlements, settlement transfers and settlement planning - for example: the need for consistency among definitions which already appear, or can be expected, in different statutes impacting structured settlements such as the Internal Revenue Code, Medicare and Medicaid, plus any related state legislation. For additional information about standards, see the article "How Standards Impact Structured Settlements" on S2KM's website.
In summarizing the history of structured settlement in the United States, Release 40 incorporates two diagrams (Structured Settlement History and Stage 3 Transition) which originally appeared in an S2KM blog post titled: "The Future of Structured Settlements". The history diagram organizes the changing characteristics and key influences defining structured settlements by category within a time line. The historical dates (1982 and 2001) highlighted by this time line represent strategic industry transitions which are supported by the historical growth and acceleration of structured settlement annuity premium. The Stage 3 transition matrix provides an overview of the changes resulting in industry business practices as a result.
To fully understand the changes re-shaping the structured settlement industry, it is also necessary to study the impact of the Internet and, more specifically, Web 2.0. For an introduction to Web 2.0 for Attorneys, see S2KM's earlier blog post titled "CBA Presentation" as well as the article "Knowledge Management and Structured Settlements" featured on S2KM's website.
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