Structured Settlements require communication as well as an active collaboration from all parties involved. To help your team along the way, we’ve provided this glossary of terms. If you have any additional questions, please don’t hesitate to contact us. We have a team of Arcadia Experts waiting to serve you.  Click on the + symbol before any keyword below to see the corresponding definition. The first definition will automatically close when you open any subsequent keyword.

A person who receives annuity or will receive them in the future.
Income payable at stated intervals for a period of time, often for the lifetime of the recipient.
An annuity that is guaranteed to payout for a certain amount of time.
An annuity that increases, usually annually, at a predetermined percentage rate above the level of the prior year’s payments.
A 3rd party to whom a legal obligation is transferred.
A party named in an annuity policy that will receive guaranteed benefits in case of the policyholder’s death.
An optional feature of a lifetime annuity that provides for the guaranteed payment of an amount at least equal to the cost of the annuity premium. At the time of an annuitant’s death, if less money has been paid out than the cost to purchase the annuity, the balance is returned to the purchaser as a lump sum of cash.
An annuity that pays out for the lifetime of the annuitant with a specific period of payments guaranteed whether or not the annuitant is living.
A demand made by a person or entity to recover from a loss.
A person who makes a demand for recovery from a loss.
A person who receives payments from a structured settlement in the case of the annuitant’s death – also known as the beneficiary.
An annuity with payments beginning at least one year in the future.
Claims brought by employees against employers such as wrongful termination or discrimination claims.
Payments made regardless if the annuitant is alive or deceased.
Lifetime annuity with guaranteed benefit equal to the premium amount (commonly used in Workers Compensation cases), which pays out as scheduled to the purchaser after Annuitant dies.
Annuity paid to two people, usually spouses, for as long as either is living. A joint and survivor annuity may also include a guaranteed period of payments to beneficiaries after both joint annuitants have died.
Annuity that is only paid out throughout the duration of the annuitant’s life. Payments stop at the time of death.
Annuity paid out during the life of the annuitant; very similar to the Life-Only annuity but often includes a guaranteed time period.
Individual annuity payments made on specific dates.
Any act or omission by a healthcare professional during treatment of a patient that deviates from accepted norms of practice in the medical community and causes an injury to the patient.
Trust account for medical expenses.
Average expected remaining years of life for a given age and gender.
Annuity that pays out for a guaranteed period of time.
Federal law that clarified the tax-free nature of structured settlements and amended the Internal Revenue Code to authorize qualified assignments in Section 130.
A person or entity that brings legal action against another party in a court of law.
Cost of the annuity used in the settlement.
Structured Settlement terms designed to meet settlement needs.
The legal transfer of an obligation to make periodic payments for damages on account of physical injury or physical sickness.
Annuity or U.S. government obligation purchased in accordance with Section 130 of the Internal Revenue Code.
The price today for a given stream of payments in the future.
IRS tax rule that conferred tax-free status for money received over time on account of physical injury or death
A trust that includes a provision for the return of remaining trust assets at the conclusion of its term, usually upon the death of the trust’s beneficiary.
Internal Revenue Service Code section excluding from income taxes payments received as a lump sum or periodic payments, for injuries or death arising out of a workers’ compensation claim.
Internal Revenue Service Code section excluding from income taxes payments received as a lump sum or periodic payments, for injuries or death arising out of a liability claim.
Internal Revenue Service Code section allowing qualified assignments, the transfer of obligations to make future income tax-free payments for damages on account of physical injury or sickness.
A settlement of a claim or lawsuit with future periodic payments, usually funded with an annuity.
A claim against an employer for an injury of death that occurred on the job.