Structured Settlement History & Case Examples
Structured settlements have grown in popularity since federal legislation more than 40 years ago encouraged their use to provide extended, tax-free financing for people who receive money from lawsuits. Examples of cases that may result in structured settlements include personal injury, workers’ compensation, medical malpractice and wrongful death.
Sell Your Annuity or Structured Settlement Payments for Cash!
Need money now? Paying off a debt? Starting a new business? Selling your annuity or structured settlement payments may be the solution for you.
Or Call us at 866-528-4784
- Written By Catherine J. Byerly
Catherine J. Byerly
Staff Writer
Catherine J. Byerly has worked in digital communications for the past four years, handling everything from award-winning, on-air public radio casts to writing in-depth investigative stories for business news sites.
Read More- Edited By
Emily MillerEmily Miller
Managing Editor
Managing editor Emily Miller is an award-winning journalist with more than 10 years of experience as a researcher, writer and editor. Throughout her professional career, Emily has covered education, government, health care, crime and breaking news for media organizations in Florida, Washington, D.C. and Texas. She joined the Annuity.org team in 2016.
Read More- Financially Reviewed By
Michael J. Boyle, M.S.Michael J. Boyle, M.S.
Former Compliance Professional
Michael J. Boyle began his career in the securities business in 2011 as a registered financial professional. Over his tenure, he’s worked with asset classes including equities, fixed income, CDs, mutual funds, futures, options and foreign currency.
Read More- Updated: September 7, 2022
- 3 min read time
- This page features 4 Cited Research Articles
The History of Structured Settlements
Structured settlements were first popularized in Canada during the 1960s as a way of managing payouts from settlements involving thalidomide. German pharmaceutical company Grünenthal manufactured the drug to ease morning sickness for pregnant women, but the sedative caused severe, life-threatening birth defects in thousands of children.
Thalidomide survivors require specialized health care and help with activities of daily living, and it quickly became clear that lump-sum settlements were not ideal for covering the cost of these lifelong needs.
Pro TipA stream of inflation-adjusted periodic payments was a more practical and just form of compensation.Although structured settlements for thalidomide claimants originated in Canada, similar cases were later filed in the United States, which popularized the use of structured settlements in medical malpractice disputes.
Recognizing that personal injury victims could also benefit from this type of settlement, the federal government passed the Periodic Payment Settlement Act (PPSA) in 1983 to promote the use of structured settlements as a means of providing long-term, tax-free financial security to people seriously injured in accidents and their families.
Pro TipThe PPSA is now part of the Internal Revenue Code.Today, structured settlements are awarded in a variety of cases, and are common for lawsuits settled out of court. Most claimants get to choose between accepting periodic payments, taking a single lump-sum payout, or some combination of the two.
Find out what your payments are worth in a lump sum payoutTurn your future payments into cash you can use right now. Get started with a free estimate and see what your payments are worth today!However, in cases that involve minor children or persons found to be incompetent, courts typically require structured settlements in order to ensure the award money is disbursed and spent appropriately.
Structured Settlement Case Examples
Structured settlements can be used to settle any kind of civil lawsuit, but they are more common for particular legal issues.
Case 1
A 46-year-old woman suffers back and head trauma after an ambulance rear-ends her car.
Personal Injury: This area of law covers much more than just physical accidents. Long-term illnesses and even emotional and reputational harm can lead to a personal injury suit.
Established by Congress through the Periodic Payment Settlement Act.
Case 2
A 35-year-old store clerk slips and falls on a snowy sidewalk outside of a major department store.
Workers’ Compensation: State laws require many employers in the United States to carry insurance specifically for work-related injuries or illnesses that employees may suffer.
Congress has viewed structured settlements of workers comp payments as an alternative to government support of workers injured on the job, expanding the settlements’ application through multiple tax reform laws since the 1990s.
“Structured settlements are critical to ensuring workplace injury victims and their families are financially secure while living free of reliance on government benefit programs,” Sen. Chuck Grassley (R-Iowa), said in a 2022 statement.
Case 3
Patient was misdiagnosed with a chronic illness and was negligently prescribed medication that caused severe liver damage.
Medical Malpractice: A special type of civil lawsuit may be filed when a medical professional harms a patient through an incorrect diagnosis, a flawed treatment or a failure in follow-up care.
Case 4
A couple is killed in an accident aboard a train speeding in inclement weather.
Wrongful Death: When someone dies due to another’s negligence, the victim’s surviving loved ones may seek compensation for pain and suffering, funeral expenses and lost household income.
Please seek the advice of a qualified professional before making financial decisions.Last Modified: September 7, 2022Share This Page:4 Cited Research Articles
Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. You can read more about our commitment to accuracy, fairness and transparency in our editorial guidelines.
- Sen. Chuck Grassley. (2022, May 5). Grassley Receives Lifetime Achievement Award From National Structured Settlements Trade Association. Retrieved from https://www.grassley.senate.gov/news/news-releases/grassley-receives-lifetime-achievement-award-from-national-structured-settlements-trade-association
- Insurance Information Institute. (n.d.). Fact + Statistics: Annuities. Retrieved from https://www.iii.org/fact-statistic/facts-statistics-annuities#top
- The Legal Examiner. (n.d.). What Are Structured Settlements? Retrieved from https://www.legalexaminer.com/category/legal/structured-settlements/
- New Hampshire Judicial Branch. (n.d.). Rule 40. Approval of Settlements: Minors. Retrieved from https://www.courts.nh.gov/rules-superior-court-state-new-hampshire/civil-rules/rule-40-approval-settlements-minors
- Edited By
Calling this number connects you to CBC Settlement Funding or another trusted partner.
If you're interested in selling your annuity or structured settlement payments, a representative will provide you with a free, no-obligation quote.
Our partners are committed to excellent customer service. They can help you navigate the legal process of selling.
866-528-4784Your web browser is no longer supported by Microsoft. Update your browser for more security, speed and compatibility.
If you are interested in selling your payments, call us at 866-528-4784