Page 4 - Glossary of Terms flipbook

last guaranteed payment date when final guaranteed annuity payment will be made for a lifetime annuity
with a period certain.

last payment date date when final annuity payment will be made for a certain only annuity.

life insurance company the insurance company that provides the annuity policy (ie: American General,
Travelers, Hartford). Also known as annuity issuer.

life only annuity an annuity with payments that continue only for the life of the annuitant. There
is no other guarantee; payments cease at death.

lifetime annuity an annuity designed to make payments for the life of the annuitant only.
Payments may be made monthly or annually, immediately or deferred (ie:
beginning 05/01/2003, $200 per month for life).

lump sum annuity an annuity designed to make a single payment in a lump sum on a certain date
in the future (ie: on 05/01/2008, $50,000).

medical trust a trust account from which medical expenses are paid for the annuitant.

normal life expectancy the amount of time a person is expected to live from their present age (based on
statistics gathered by the life insurance companies).

novation the substitution of a third party for an obligor with the claimant's consent. This
is the assignment process.

Periodic Payment Act of 1983 also known as Public Law 97-473. Brought various tax rulings into statutory
certainty and added Section 130 to the Internal Revenue Code, thus authorizing
qualified assignments.

personal injury an injury to a person that is not physical, ie: defamation of character, wrongful
termination. These types of cases cannot be assigned under Section 130 on a
qualified basis but can be done through a non-qualified market.

physical injury an injury to a person's physical body, ie: loss of limb, brain damage, dog bite.
These types of cases can be assigned under Section 130.

plaintiff the individual who has been injured or has brought a lawsuit against the defense.
Also known as the claimant, employee, measuring life, annuitant.

plaintiff attorney the attorney representing the plaintiff.

premium the cost of the complete annuity portion of the settlement.

proposal a structured settlement package presented to the casualty company and/or
attorneys as a suggested solution for settlement.

purchase date the date the premium will be received by the life insurance company.

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