Sell Structured Settlement The Selling Process

Question 1

What is the term for a company that purchases structured settlement payment rights from a payee?

Accepted Answer

Factoring company

Answer

Annuity issuer

Answer

Settlement broker

Answer

Claims adjuster

Question 2

When a payee sells their structured settlement payments, they typically receive:

Accepted Answer

A discounted lump sum less than the total value of future payments

Answer

The full face value of all future payments

Answer

Extra interest on top of future payment values

Answer

The same amount the annuity is worth at maturity

Question 3

What is the 'discount rate' in the context of selling structured settlement payments?

Accepted Answer

The rate used to calculate the present value of future payments

Answer

The interest rate on the annuity

Answer

The percentage deducted from payments for taxes

Answer

The court filing fee percentage

Question 4

What is the first step a payee should typically take when considering selling their structured settlement?

Accepted Answer

Consult an independent financial advisor or attorney

Answer

Immediately sign a purchase agreement

Answer

Contact the annuity issuer to transfer ownership

Answer

File a petition with the court

Question 5

Which document formally transfers the rights to structured settlement payments to a factoring company?

Accepted Answer

Purchase and sale agreement (transfer agreement)

Answer

Annuity policy

Answer

Court judgment

Answer

Insurance assignment form

Question 6

How long does the typical structured settlement transfer process take from agreement to receiving funds?

Accepted Answer

About 45–90 days

Answer

1–3 business days

Answer

6–12 months

Answer

2–5 years