New York Structured Settlements  and Structured Judgments

Warning to New Yorker Residents Receiving Structured Settlement Payments

Don't get hustled by companies trying to buy your structured settlement payments for pennies on the dollar no matter how amusing their advertiisng is.  Among the bad business practices of companies seeking to buy your structured settlement


  • Some may try to advance you money in amounts that you cannot afford to pay back,  unless you sell to them.
  • Some may tell you the only way to get the deal done is in another state becuse of the scrutiny given by New York judges.. If a prospective buyer wants you to do the deal in Connecticut, Florida, Virginia, Louisiana or any other state where you do not reside, just say NO. Prospective buyers may profile you or may try to find out where your relatives have property.  If the deal later turns out to be fraudulent and part of that was you signing an attestation that you live in a state that you don't your chances of an order being vacated in your favor are diminished. Some sneaky structured settlement cash now companies also use so-called "forum shopping" to slip in an arbitration clause that would not be permitted in New York structured settlement transfer agreements [see Lafontant v Imperial Structured Settlements].
  • Any sale or transfer of structured settlement payment rights requires court approval by a New York judge as being in your best interest as well as any applicable dependents. 
  • Allstate Life Insurance Company of New York and First Berkshire Hathaway Life Insurance Company structured settlement annuitants, who are exploring selling, should first go the structured settlement annuity issuer to get the baseline. Any other prospective purchaser should beat that rate. Some buyers will argue for a higher price because they claim to provide something of value. Just make sure you know exactly what that is, and determine if it is worth paying more for, before you proceed.

Structured Settlement Protections for New York Residents

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New York Structured Settlement Protection Act

The New York Structured Settlement Protection Act was designed to protect New York residents, both at the time that structured settlements are created at the settlement of lawsuit and if a time should come when structured settlement payment rights are sold.



How are New York residents protected at the time a structured settlement is created?

New York state law requires that certain disclosures be made by the defendant or the defendant's legal representative as more specifically provided for in New York General Obligations Law (see below).


§ 5-1702. Initial disclosure of structured settlement terms
In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in this state, the defendant or defendant's legal representative shall disclose in writing to the claimant or the claimant's legal representative all of the following information that is not otherwise specified in the structured settlement agreement:
(a) the amounts and due dates of the periodic payments to be made under the structured settlement agreement. In the case of payments that will be subject to periodic percentage increases, the amounts of future payments may be disclosed by identifying the base payment amount, the amount and timing of scheduled increases, and the manner in which increases will be compounded;
(b) the amount of the premium payable to the annuity issuer;
(c) the nature and amount of any cost that may be deducted from any of the periodic payments;
(d) where applicable, that any transfer of the periodic payments is prohibited by the terms of the structured settlement and may otherwise be prohibited or restricted under applicable law; and
(e) a statement that the claimant is advised to obtain independent professional advice relating to the legal, tax and financial implications of the settlement, including any adverse consequences and that the defendant or defendant's legal representative may not refer any advisor, attorney or firm for such purpose.

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New York Structured Settlement Experts   888-325-8640