Virginia Structured Settlement Protection Act: Transfer Process and Statutory Requirements

Virginia’s Structured Settlement Protection Act is codified at Va. Code Ann. §§ 59.1-475 through 59.1-479. Virginia’s Act is notable for several distinctive provisions, including explicit restrictions on life-contingent payment transfers and a clear dispute resolution framework requiring Virginia law and venue. The Act applies to all transfers involving payees domiciled in the Commonwealth.

📜 Governing Statute

Virginia’s SSPA is found at Code of Virginia §§ 59.1-475 through 59.1-479, within Title 59.1 (Trade and Commerce). The Act was originally enacted in 1999 (c. 993) and has been amended several times, most recently in 2016 (cc. 273, 739).

📄 Required Disclosures (§ 59.1-475.1)

Not less than three days prior to the payee signing a 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 payments to be transferred
• The aggregate amount of payments
• The discounted present value, identified as the “calculation of current value of the transferred structured settlement payments under federal standards for valuing annuities,” along with the AFR used
• The gross advance amount
• An itemized listing of all transfer expenses
• The net advance amount
• A statement advising the payee to seek independent professional advice

📋 Life-Contingent Payment Protections

Virginia includes a specific provision regarding life-contingent payments: no transfer of structured settlement payment rights may extend to life-contingent payments unless, prior to the date the payee signs the transfer agreement, the transferee has established and agreed to maintain procedures reasonably satisfactory to the annuity issuer and the structured settlement obligor for periodically confirming the payee’s survival and giving prompt written notice if the payee dies.

📋 Dispute Resolution

Any transfer agreement entered into by a Virginia-domiciled payee must provide that disputes under the agreement—including breach claims—shall be determined in and under the laws of the Commonwealth of Virginia. No transfer agreement may authorize the transferee or any other party to confess judgment or consent to entry of judgment against the payee.

⚖️ court approval Standard

The court must find that the transfer is fair and reasonable and in the best interest of the payee, considering the welfare and support of dependents. Virginia explicitly states that compliance with the disclosure and approval requirements is solely the responsibility of the transferee, and neither the structured settlement obligor nor the annuity issuer bears responsibility for the transferee’s compliance.

📋 Workers’ Compensation Exclusion

Virginia’s SSPA explicitly excludes transfers of workers’ compensation claims, awards, benefits, settlements, or payments made or payable pursuant to Title 65.2 of the Virginia Code. This is a hard exclusion—not merely a procedural difference.

📋 Anti-Assignment Provisions

Virginia’s Act provides that a court shall not be precluded from hearing a transfer application merely because the structured settlement terms prohibit sale, assignment, or encumbrance of payment rights. Interested parties are not precluded from waiving or asserting their rights under those terms.

💡 Practical Considerations

• Virginia law and venue required—all disputes must be resolved under Virginia law, in Virginia courts
• Life-contingent payment procedures—establish survival verification protocols before executing transfer agreements involving life-contingent payments
• Workers’ comp hard exclusion—no transfers of Title 65.2 benefits are permitted
• No confession of judgment—ensure all transfer agreements exclude this provision for Virginia payees
• Independent cities—Virginia’s independent city system means some payees may reside in jurisdictions with different filing procedures

📋 Statutory References

• Va. Code Ann. §§ 59.1-475–59.1-479
• Va. Code Ann. Title 65.2 — Workers’ Compensation
• 26 U.S.C. § 5891 — Federal tax treatment

⚠️ Disclaimer: This guide provides general information about Virginia 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 →