Following a transfer of structured settlement payment rights under the Structured Settlement Protection Act of 2001:
§ 3242.Discharge and Release From Liability
Chapter 41A: Structured Settlement Protection Act of 2001 · Not amended since adoption on record · Last verified August 3, 2026
In one sentenceSpells out what happens once a court-approved transfer closes: the obligor and annuity issuer owe nothing more to anyone but the transferee, the transferee absorbs certain taxes and costs, payments can't be split among multiple buyers, and any later transfer must again comply with the act.
Full Text of § 3242
1. The structured settlement obligor and the annuity issuer shall, as to all parties except the transferee, be discharged and released from any and all liability for the transferred payments;
2. The transferee shall be liable to the structured settlement obligor and the annuity issuer:
a. if the transfer contravenes the terms of the structured settlement, for any taxes incurred by such parties as a consequence of the transfer, and
b. for any other liabilities or costs, including reasonable costs and attorneys' fees, arising from compliance by the parties with the order of the court or responsible administrative authority or arising as a consequence of the transferee's failure to comply with this act;
3. Neither the annuity issuer nor the structured settlement obligor may be required to divide any periodic payment between the payee and any transferee or assignee or between two or more transferees or assignees; and
4. Any further transfer of structured settlement payment rights by the payee may be made only after compliance with all of the requirements of the Structured Settlement Protection Act of 2001.
Amendment History
Added by Laws 2001, SB 545, c. 70, §5, eff. 11/1/2001.
Plain-English Summary
Once a transfer of structured settlement payment rights goes through, Section 3242 sorts out who owes what to whom. The structured settlement obligor and the annuity issuer are discharged and released from liability for the transferred payments to everyone except the transferee -- they can send the money to the new owner and be done with it.
The transferee, in turn, takes on the risk. If the transfer contravenes the terms of the structured settlement, the transferee is liable for any taxes that causes the obligor or issuer to incur, plus reasonable costs and attorney's fees from complying with the court's order or from the transferee's own failure to follow the act. Neither the obligor nor the issuer can be forced to split a payment between the payee and a transferee, or between competing transferees. And if the payee wants to transfer payment rights again later, that new transfer has to satisfy every requirement of the act all over again.
Frequently Asked Questions
After my structured settlement payments are sold, does the insurance company still owe me anything for those payments?
No. Once the transfer goes through, the structured settlement obligor and the annuity issuer are discharged from liability for the transferred payments to everyone but the transferee.
Who's on the hook if the transfer breaks the rules of my original settlement?
The transferee is liable to the obligor and annuity issuer for any taxes that result, plus reasonable costs and attorney's fees tied to the court order or the transferee's noncompliance.
Can I split my payments between two different buyers?
The obligor and annuity issuer can't be required to divide a periodic payment between the payee and a transferee, or between two or more transferees or assignees.
If I sell more of my payments later, do I have to go through court approval again?
Yes. Any further transfer of structured settlement payment rights can happen only after full compliance with the act's requirements.
Source & verification. Section text is reproduced verbatim from
Title 12 of the Oklahoma Statutes, enacted by the Oklahoma Legislature.
Last verified August 3, 2026.
· Official source
Also known as: what happens after structured settlement transfer approvedtransferee liability structured settlement oklahoma12 O.S. § 3242can insurer split structured settlement payments