Florida Structured Settlement Protection Act: Transfer Law and Court Procedures

Florida’s Structured Settlement Protection Act, codified at Florida Statutes §§ 626.99296–626.99298, governs all transfers of structured settlement payment rights involving Florida payees. Florida is one of the highest-volume states for structured settlement transfers due to its large population of retirees, personal injury claimants, and the state’s significant tort litigation market. The Florida SSPA is positioned within the Insurance Code, reflecting the state’s regulatory approach to structured settlement transactions.

📜 Governing Statute

The Florida Structured Settlement Protection Act is found at Florida Statutes §§ 626.99296 through 626.99298, within Title XXXVII (Insurance) of the Florida Statutes. The Act establishes disclosure requirements, court approval procedures, and payee protections for all transfers of structured settlement payment rights.

📄 Required Disclosures

Not less than three days before the payee signs the transfer agreement, the transferee must provide a separate disclosure statement in bold type no smaller than 14 points, including:

• The amounts and due dates of the structured settlement payments to be transferred
• The aggregate amount of the payments
• The discounted present value using the Applicable Federal Rate
• The gross advance amount
• An itemized listing of all applicable transfer expenses
• The net advance amount
• A statement advising the payee to seek independent professional advice regarding the transfer

⚖️ Court Approval Requirements

No transfer of structured settlement payment rights is effective unless approved by a court order. The court must make express findings that:

• The transfer is in the best interest of the payee, taking into account the welfare and support of the payee’s dependents
• The payee has been advised in writing to seek independent professional advice and has either received such advice or knowingly waived the opportunity in writing
• The transfer does not contravene any applicable statute or the order of any court or other government authority

📋 Interested Party Notification

Florida requires that all interested parties be served with the petition and given notice of the hearing. Interested parties include the payee, any beneficiary irrevocably designated under the annuity contract, the annuity issuer, the structured settlement obligor, and any other party with continuing rights or obligations under the settlement.

🏛️ Venue and Filing

Transfer petitions are typically filed in the circuit court of the county where the payee resides. Florida’s circuit courts are organized into 20 judicial circuits. The highest-volume circuits for structured settlement transfers include the 11th Circuit (Miami-Dade), 17th Circuit (Broward), 9th Circuit (Orange/Osceola), 13th Circuit (Hillsborough), and 6th Circuit (Pinellas/Pasco).

🛡️ No State registration requirement

Florida does not currently require structured settlement purchase companies to register with any state agency or post a surety bond specifically for structured settlement factoring activities. Companies must comply with general Florida business registration requirements through the Department of State, Division of Corporations.

📋 Florida Bar Ethics Considerations

Florida Bar Staff Opinion 30310 (April 4, 2011) addressed the ethical obligations of attorneys in structured settlement transfers. The opinion found that a lawyer should not agree to personally indemnify an opposing party, and should not require that another attorney enter into a personal indemnification agreement, as both practices violate the Florida Rules of Professional Conduct. Companies should ensure their transfer agreements and attorney engagement practices comply with these ethical guidelines.

💡 Practical Considerations

• High-volume jurisdiction—Florida’s large population and tort market make it one of the busiest states for transfer petitions
• Retiree population—significant number of structured settlement payees have relocated to Florida, raising jurisdictional questions about which state’s SSPA governs
• Insurance Code placement—the SSPA’s location within the Insurance Code reflects Florida’s regulatory framework but does not require insurance licensure for transferees
• Typical timeline—expect 45–90 days from filing to court approval, depending on circuit court docket congestion
• Hurricane and disaster considerations—court schedules may be disrupted by emergency declarations; build flexibility into transfer timelines

📋 Statutory References

• Florida Statutes §§ 626.99296–626.99298
• 26 U.S.C. § 5891 — Federal tax treatment
• Florida Bar Staff Opinion 30310 (2011) — Attorney ethics in settlement transfers

⚠️ Disclaimer: This guide provides general information about Florida structured settlement law for educational purposes only. It does not constitute legal, financial, or tax advice. Laws change — always verify with current state statutes and consult a licensed attorney. Read full disclaimer →