§ 25-3103.Terms, defined.

Article 31: Structured Settlements Transfers Protection Act and Nebraska Statutory Thresholds for Settlements Involving Minors Act · Last amended 2001 · Last verified July 22, 2026

In one sentenceThis section defines the fourteen terms used throughout the Structured Settlements Transfers Protection Act, including payee, transferee, transfer agreement, discounted present value, and discount or finance charge, giving each a precise meaning for the court-approval process the Act requires.

Full Text of § 25-3103

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For purposes of the Structured Settlements Transfers Protection Act:

(1) Annuity issuer means an insurer that has issued a contract to be used to fund periodic payments under a structured settlement;

(2) Applicable federal rate means the most recently published applicable rate used to determine the present value of an annuity, as issued by the Internal Revenue Service pursuant to section 7520 of the Internal Revenue Code as defined in section 49-801.01;

(3) Dependent means a payee's spouse and minor children and any other family member and other person for whom the payee is legally obligated to provide support, including spousal maintenance;

(4) Discount or finance charge means the sum of all charges payable directly or indirectly from assigned structured settlement payments and imposed directly or indirectly by the transferee as an incident to a transfer of structured settlement payment rights. Discount or finance charge includes interest charges, discounts, and other compensation for the time value of money, all application, origination, processing, underwriting, closing, filing, and notary fees and all similar charges, and all charges for commissions or brokerage services. Discount or finance charge does not include any fee or other obligation incurred by a payee to obtain independent professional advice concerning a transfer of structured settlement payment rights or any charges, commissions, costs, brokerage fees, or other fees which the payee has agreed to pay to a nonaffiliated third party in connection with the transfer;

(5) Discounted present value means, with respect to a proposed transfer of structured settlement payment rights, the fair present value of future payments, as determined by discounting the payments to the present using the most recently published applicable federal rate used to determine the present value of an annuity as the discount rate;

(6) Interested parties means, with respect to any structured settlement:

(a) The payee;

(b) Any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death or, if such designated beneficiary is a minor, the designated beneficiary's parent or guardian;

(d) The structured settlement obligor; and

(e) Any other party that has continuing rights or obligations under the structured settlement;

(7) Payee means a Nebraska resident who is receiving tax-free payments under a structured settlement and proposes to make a transfer of payment rights under the structured settlement. Payee does not include a Nebraska resident who is receiving payments under a structured settlement of a workers' compensation claim;

(8) Qualified assignment agreement means an agreement providing for a qualified assignment within the meaning of section 130 of the Internal Revenue Code as defined in section 49-801.01;

(9) Structured settlement means an arrangement for periodic payment of damages for personal injuries or sickness established by a settlement, agreement, or judgment in resolution of a tort claim;

(10) Structured settlement obligor means the party that has the obligation to make continuing periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement;

(11) Structured settlement payment rights means rights to receive periodic payments, including lump-sum payments under a structured settlement, whether from the settlement obligor or the annuity issuer if the payee is a resident in the state;

(12) Transfer means a sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made by a payee for consideration;

(13) Transfer agreement means the agreement providing for transfer of structured settlement payment rights from a payee to a transferee; and

(14) Transferee means a person who is receiving or will receive structured settlement payment rights resulting from a transfer.

Source

Laws 2001, LB 55, § 3.

Plain-English Summary

Section 25-3103 defines fourteen terms that everything else in the Act depends on. Some identify the people involved: the “payee” is the Nebraska resident receiving the tax-free structured settlement payments and proposing to transfer them; the “transferee” is the person receiving the payment rights in exchange; the “annuity issuer” and “structured settlement obligor” are the parties who keep making payments; and “interested parties” include the payee, any beneficiary, the issuer, the obligor, and anyone else with continuing rights or obligations under the settlement.

Other terms define the money side of the deal. “Discounted present value” is the fair present value of the future payments, calculated using the applicable federal rate. “Discount or finance charge” covers interest, fees, commissions, and similar costs the transferee builds into the price — but not fees the payee separately pays a nonaffiliated professional for independent advice. “Transfer,” “transfer agreement,” and “structured settlement payment rights” describe the sale itself and the document that carries it out.

These definitions matter because section 25-3104’s court-approval process refers back to them directly. A court reviewing a proposed transfer has to know exactly what counts as a “discount or finance charge” that must be disclosed, versus a fee the payee agreed to pay an independent adviser, and exactly who qualifies as an “interested party” entitled to notice of the proceeding.

Frequently Asked Questions

Who is the “payee” under the Act?

A Nebraska resident who is receiving tax-free payments under a structured settlement and proposes to transfer the right to receive them, excluding a resident receiving payments under a workers’ compensation settlement.

Who is the “transferee”?

The person who is receiving, or will receive, structured settlement payment rights as a result of a transfer.

What does “discounted present value” mean?

The fair present value of the future structured settlement payments, calculated by discounting them using the most recently published applicable federal rate for valuing an annuity.

What is included in a “discount or finance charge”?

Interest, discounts, and other compensation for the time value of money, plus application, origination, processing, underwriting, closing, filing, notary, commission, and brokerage fees tied to the transfer — but not fees the payee pays a nonaffiliated party for independent advice or other agreed services.

Who counts as an “interested party” entitled to notice of a transfer?

The payee, any irrevocably designated beneficiary (or that beneficiary’s parent or guardian if a minor), the annuity issuer, the structured settlement obligor, and any other party with continuing rights or obligations under the settlement.

Does a workers’ compensation recipient count as a “payee”?

No. The definition of “payee” specifically excludes a Nebraska resident receiving payments under a structured settlement of a workers’ compensation claim.

Source & verification. Section text and the amendment-history citation are reproduced verbatim from the Nebraska Legislature, Revisor of Statutes, enacted by the Nebraska Legislature. Last verified July 22, 2026. · Official source

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