Michigan Structured Settlement Protection Act: Transfer Requirements and Compliance

Michigan’s Structured Settlement Protection Act is codified at MCL §§ 691.1391–691.1399. As a state with a significant manufacturing heritage and correspondingly large personal injury litigation history, Michigan generates a steady volume of structured settlement transfers. The Act follows the model SSPA framework and is administered through Michigan’s circuit court system.

📜 Governing Statute

The Michigan SSPA is found at Michigan Compiled Laws §§ 691.1391 through 691.1399. The Act establishes the standard framework of disclosures, court approval, and payee protections for all transfers of structured settlement payment rights involving Michigan payees.

📄 Required Disclosures

Not less than three days before the payee signs the transfer agreement, the transferee must provide a written disclosure in bold type no smaller than 14 points, including: payment amounts and dates, aggregate amount, discounted present value (using AFR), gross advance amount, itemized expenses, net advance amount, and a recommendation to seek independent professional advice.

⚖️ Court Approval Standard

The circuit court must find that the transfer is in the best interest of the payee, taking into account the welfare and support of dependents. The payee must have been advised of the right to independent professional advice and must have received it or knowingly waived it. The transfer must not contravene applicable statutes or court orders.

🏛️ Venue

Transfer petitions are filed in the circuit court of the county where the payee resides. Wayne County (Detroit), Oakland County, and Macomb County handle the highest volumes. Michigan’s circuit courts are well-established and generally familiar with structured settlement transfer proceedings.

📋 No-Fault Auto Insurance Considerations

Michigan’s unique no-fault auto insurance system generates a significant number of structured settlements arising from motor vehicle accidents. Companies should be aware that structured settlements originating from Michigan no-fault claims may have specific characteristics—including lifetime medical benefit components—that affect the transferability of payment rights. Careful analysis of the underlying settlement agreement is essential.

🛡️ No State registration requirement

Michigan does not currently require structured settlement purchase companies to register with a state agency or post a surety bond for factoring activities.

💡 Practical Considerations

• No-fault auto settlements—Michigan’s unique insurance system creates settlements with distinctive payment structures; analyze carefully before pursuing transfers
• Wayne County volume—Detroit-area courts handle the majority of Michigan transfer petitions
• Standard timeline—45–75 days from filing to approval
• Manufacturing injury claims—Michigan’s industrial history means a significant proportion of settlements arise from workplace and product liability claims

📋 Statutory References

• MCL §§ 691.1391–691.1399
• 26 U.S.C. § 5891 — Federal tax treatment

⚠️ Disclaimer: This guide provides general information about Michigan 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 →