Structured Settlements

If the settlement involves the purchase of an annuity or other form of structured settlement, the court shall: (a) Determine the cost of the annuity or structured settlement to the tortfeasor by examining the proposal of the annuity company or other generating entity; (b) Require that the company issuing the annuity or structured settlement: (1) Be licensed to do business in Minnesota; (2) Have a financial rating equivalent to A. M. Best Co. A+, Class VIII or better; (3) Has complied with the applicable provisions of Minnesota Statutes, sections 549.30 to 549.34; or that a trust making periodic payments be funded by United States Government obligations; and (4) If the company issuing the proposed annuity or structured settlement is related to either the settling party or its insurer, that the proposed annuity or structured settlement is at least as favorable to the minor or incompetent person as at least one other competitively-offered annuity obtained from an issuer qualified under this rule and not related to the party or its insurer. This additional proposal should be for an annuity with the same terms as to cost and due dates of payments. (c) Order that the original annuity policy be deposited with the court administrator, without affecting ownership, and the policy be returned to the owner of the policy when: (1) The minor reaches majority; (2) The terms of the policy have been fully performed; or (3) The minor dies, whichever occurs first. (d) In its discretion, permit a "qualified assignment" within the meaning and subject to the conditions of Section 130(c) of the Internal Revenue Code; (e) In its discretion, order the tortfeasor or its insurer, or both of them, to guarantee the payments contracted for in the annuity or other form of structured settlement; and (f) Provide that: (1) The person receiving periodic payments is entitled to each periodic payment only when the payment becomes due; (2) That the person shall have no rights to the funding source; and (3) That the person cannot designate the owner of the annuity nor have any right to control or designate the method of investment of the funding medium; and Published by the Revisor of Statutes under Minnesota Statutes, section 3C.08, subdivision 1. 147 GENERAL RULES OF PRACTICE MINNESOTA COURT RULES (g) Direct that the appropriate party or parties will be entitled to receive appropriate receipts, releases or a satisfaction of judgment, pursuant to the agreement of the parties. (Amended effective January 1, 1993; amended effective January 1, 1996; amended effective March 1, 2001; amended effective January 1, 2003.) Cross Reference: Minn. R. Civ. P. 17.