by John Darer CLU ChFC MSSC CeFT RSP CLTC
Nevada's Senate Bill 332 is an ACT relating to structured settlements;
- requiring structured settlement purchase companies to register with the Consumer Affairs Division of the Department of Business and Industry;
- prohibiting certain activities by structured settlement purchase companies and their employees and representatives;
- setting forth procedures and requirements concerning the transfer of structured settlement payment rights;
- and providing other matters properly relating thereto
According to the Senate Amendment 438 to Nevada Senate Bill 332 (sponsored by Nevada Senator Melanie Scheible, 32)
to Section 29 of this bill: (1) requires structured settlement purchase companies to register with the Consumer Affairs Division of the Department of Business and Industry; and (2) sets forth requirements concerning registration, such as obtaining a surety bond, letter of credit or cash bond in the amount of $50,000.
Sections 30 and 31 of this bill set forth further requirements concerning registration, section 33 of this bill sets forth further requirements concerning surety bonds obtained for registration and section 34 of this bill provides that certain persons are not required to register.
Section 35 of this bill: (1) prohibits structured settlement purchase companies and their employees and representatives from engaging in various specified actions { see below]; and (2) provides a private right of action to payees and other structured settlement purchase companies to pursue and obtain damages and other remedies from a person who engages in prohibited activities. Section 32 of this bill requires a structured settlement purchase company to notify the Division and, if applicable, the surety which issued the applicable surety bond, if a judgment is obtained against the structured settlement purchase company.
Section 37 of this bill requires a structured settlement purchase company to provide to a payee an extensive disclosure statement before a transfer may
Sections 36, 38 and 40 of this bill set forth requirements concerning: (1) the filings a structured settlement purchase company must make with a court before a transfer may occur; (2) the findings a court must make before a transfer may occur; and (3) procedures to be followed in obtaining court approval of a transfer, including, without limitation, notice requirements.
Section 39 of this bill describes the rights of various interested parties after the transfer of 33 structured settlement payment rights, section 41 of this bill sets forth various protections for 34 payees and sections 41 and 43 of this bill provide that the provisions of this bill apply only to transfer agreements entered into on or after October 1, 2021.
Under Section 35, It is appears OK to pay
(1) A commission or finder’s fee to a person who is a structured settlement purchase company or is an employee of a structured settlement purchase company;
(2) To third parties any routine transfer expenses, including, without limitation, court filing fees, escrow fees, lien recordation fees, judgment and lien search fees, attorney’s fees and other similar types of fees relating to a transfer; and
(3) A reasonable referral fee to an attorney, certified public accountant, actuary, licensed insurance agent or other licensed professional adviser in connection with a transfer.
It seems that the unethical practice of paying kick backs to corrupt notary publics to poach deals from competitors is not acceptable
But It is not OK to
(f) Intentionally advertise materially false or misleading information regarding the products or services of the transferee or structured settlement purchase company.
(g) Attempt to coerce, bribe or intimidate a payee seeking to transfer structured settlement payment rights.
(h) Attempt to defraud a payee or any party to a structured settlement transfer or any interested party in a structured settlement transfer proceeding by means of forgery or false identification.
(i)except as otherwise provided in this paragraph, intervene in a pending structured settlement transfer proceeding if the transferee or structured settlement purchase company is not a party to the proceeding or an interested party relative to the proposed transfer which is the subject of the pending structured settlement transfer proceeding. The provisions of this paragraph do not prevent a structured settlement purchase company from intervening in a pending structured settlement transfer proceeding if the payee has signed a transfer agreement with the structured settlement purchase company within 60 days before the filing of the pending structured settlement transfer proceeding and the structured settlement purchase company which filed the pending structured settlement transfer proceeding violated any provision of sections 2 to 41, inclusive, of this act in connection with the proposed transfer that is the subject of the pending structured settlement transfer proceeding.
(j)Except as otherwise provided in this paragraph, knowingly contact a payee who has signed a transfer agreement and is pursuing a proposed transfer with another structured settlement purchase company for the purpose of inducing the payee into cancelling the proposed transfer or transfer agreement with the other structured settlement purchase company if a structured settlement transfer proceeding has been filed by the other structured settlement purchase company and is pending. The provisions of this paragraph do not apply if no hearing has after the filing of the pending structured settlement transfer proceeding.
(k) Fail to dismiss a pending structured settlement transfer proceeding at the request of the payee. A dismissal of a structured settlement proceeding after a structured settlement purchase company has violated the provisions of this paragraph does not exempt the structured settlement purchase company from any liability under this paragraph.
The Proposed Nevada Act would also give a court the power to (1) Revoke the registration of the settlement purchasing company; (2) Suspend the registration; or (3) Enjoin the structured settlement purchasing company from filing new structured settlement transfer proceedings in Nevada, if the there is a determination that the structured settlement purchasing company is in violation of the Act
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