LEARNING CENTER
Glossary
Accumulated Value
The full value of an annuity contract, including principal plus gain. Annuitant
A person for whose life an annuity contract is based and generally the person who is receiving or entitled to the annuity payments due under the annuity contract. Annuity
A contract that can provide income for either a specified period of time, such as for the life of the individual or for 20 years. Annuity Benefits
The guaranteed periodic payments that will be paid to the owner or the designated payee during the payout period. Annuity Contract
The agreement between an individual and an insurance company that agrees to the features of an annuity and the responsibilities of each party. Annuity deferral
the ability to delay purchasing an annuity if the current rates are low when you reach retirement age. Annuity issuer
An insurer that has issued a contract to fund periodic payments under a structured settlement. Annuity Owner
The person, company, or people who make decisions about an annuity for example to whom the benefits under the policy are paid out to Annuity Payment Period
The time period that the payments are to be paid out for. Annuity Start Date
The date on which the first payments are set to begin. Assignment
The transfer of interests in for example an annuity contract to another. Bankruptcy
A federally regulated process where individuals or entities that have liabilities greater than assets seek judicial protection from creditors. Bankruptcy - Chapter 13
The type of bankruptcy in which an individual keeps some assets and pays creditors according to a court approved plan. Bankruptcy - Chapter 7
The type of bankruptcy in which an individual's debt is eliminated, but assets are liquidated to repay creditors. Beneficiary
The designated person(s) or entity under an annuity contract or life insurance policy who receives the death benefit when the insured dies under the policy. Cash Value
The total amount available upon the cancellation of a life insurance policy that is payable to the owner of the policy prior to the maturity or insured event. Child Support
Support that is paid by one spouse to another via Court Order for the support of the children after separation or divorce. Child Support Payoff Letter
A letter issued by the child support enforcement agency that identifies the amount necessary to pay off outstanding child support obligations. Court Order
A ruling that is issued by a judge that is legally binding on the parties involved in a lawsuit. Deferred Annuity
An annuity where the payments begin sometime in the future rather than immediately. Dependents
A payee's spouse and minor children and all other persons for whom the payee is legally obligated to provide support, including alimony. Discount Rate
An interest rate that is used to compute the present value for future monetary payments. Discounted present value.
The present value of future payments determined by discounting the payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service. Divorce Decree or Divorce Order
An Order or Decree that outlines the rights and the responsibilities of the parties and it also contains important information regarding the property distributions and allocations to the parties. Escrow
An arrangement typically holding money in trust "in escrow" by a trusted third party until the agreed conditions have been met. Estate
A person's property, entitlements and obligations that is typically used or referred to in probate. Federal Tax Liens
A lien against property of an owner for tax obligations that are owed to the federal government. Fixed Annuity
An annuity that pays the investor a fixed about of income. Gross advance amount
The sum payable to the payee or for the payee's account as consideration for a transfer of structured settlement payment rights before any reductions for transfer expenses or other deductions to be made from the consideration. Guaranteed Payments
Payments made under an annuity contract that are guaranteed to be made even if the payee is living or not. Independent professional advice
Advice of an attorney, certified public accountant, actuary, or other licensed professional adviser. Immediate Annuity
These are annuities whereby the annuity issuer will begin making payments either at least one year out or immediately to the payee. Insurance Settlement
A settlement of a legal claim by an insurance company to a person, persons, or entity for consideration in the form of monetary compensation. Insured
A person who is insured under a policy from an insurance company. Insurer
A company that provided insurance through an insurance policy. Interested parties.
With respect to any structured settlement, the payee, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the structured settlement obligor, and any other party that has continuing rights or obligations under such structured settlement. Life Expectancy
The expected life length of a person based on a variety of factors. Life Only Payments
Payments that are made only during the life of the payee. Once the Payee dies, the payments will cease. Lifetime Payments
An annuity option where by the payee receives a set amount of payments for the life of the payee and will cease when the payee dies. Liquidity
The ability to sell an asset quickly with little or no loss in value. Lump Sum
A sum of money paid up front. Lump Sum Annuity
An annuity contract where there are large payment amounts due on certain dates, such as every five years for 40 years guaranteed. Lump Sum Payment
A single sum of money paid out all at once rather than over a period of time. Net Advance Amount
The lump sum amount payable to a payee after a transfer and all deductions have been taken out. Net Present Value
The total amount of cash today given after the future amounts have been discounted by the discount rate. Notarize
The process whereby a notary must witness the signing of a document, typically used for legal documents. Payee.
An individual who is receiving tax free payments under a structured settlement and proposes to make a transfer of payment rights thereunder. Payment Stream
Payments that are received over time from a structured settlement annuity or from a lottery prize award annuity. Periodic payments
Includes both recurring payments and scheduled future lump sum payments. Plaintiff
The person who files a lawsuit against another in civil court. Present Value
The value of future payments calculated with a discount rate to give the worth of all those future payments. Purchase Price
This is the price that the purchase is offering to pay for those future payments now. Qualified Assignment
This is a legal assignment of the obligation to make future payments according to a structured settlement that satisfy the requirements of Internal Revenue Code for favorable tax treatment of a structured settlement. Quote
This is a stated amount of money for future payments. Qualified assignment agreement
An agreement providing for a qualified assignment within the meaning of Section 130 of the United States Internal Revenue Code, United States Cod e Title 26, as amended from time to time. Responsible administrative authority
With respect to a structured settlement, any government authority vested by law with exclusive jurisdiction over the settled claim resolved by such structured settlement. Settlement Agreement
This is an agreement between two parties to settle a lawsuit. Settled claim
The original tort claim resolved by a structured settlement. Settlement Date
The date upon which the settlement agreement was fully agreed upon and fully executed. Spouse
A married person's legal partner. State Tax Lien
a Claim by the state against property of a person who owes the state money for taxes. Stipulation
An Agreement entered into between parties of a lawsuit. Structured Settlement Annuity
A special annuity that is set up as consideration for the settlement of a lawsuit. Structured settlement agreement
The agreement, judgment, stipulation, or release embodying the terms of a structured settlement. Structured settlement obligor. With respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement. Term Certain
Payments from an annuity that are guaranteed for a specific period of time. Term Life Insurance
Life insurance policy that is for a specific period of time. Terms of the structured settlement
Include, with respect to any structured settlement, the terms of the structured settlement agreement, the annuity contract, any qualified assignment agreement, and any order or other approval of any court or responsible administrative authority or other government authority that authorized or approved the structured settlement. Transfer
Any sale, assignment, pledge, hypothecation, or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; provided that the term does not include the creation or perfection of a security interest in structured settlement payment rights under a security agreement entered into witha bank or other insured depository institution or a subsidiary or affiliate of a bank or other insured depository institution (secured party) until and unless the secured party redirects the structured settlement payments to such secured party, or an agent or successor in interest thereof, or otherwise enforces the security interest against the structured settlement payment rights. Transfer agreement
The agreement providing for a transfer of structured settlement payment rights. Transferee
A party acquiring or proposing to acquire structured settlement payment rights through a transfer; provided that the term does not include a secured party who has not received a transfer of the structured settlement payment rights as the term "transfer" is defined in subdivision Transfer expenses
All expenses of a transfer that are required under the transfer agreement to be paid by the payee or deducted from the gross advance amount, including, without limitation, court filing fees, attorneys' fees, escrow fees, lien recordation fees, judgment and lien search fees, finders' fees, commissions, and other payments to a broker or other intermediary. The term does not include preexisting obligations of the payee payable for the payee's account from the proceeds of a transfer. W-9 Form
A tax form for the United States which certifies an individual's taxpayer identification number.
