407.1060.  Definitions. — As used in sections 407.1060 to 407.1068, the following terms mean:

  (1)  "Annuity issuer", an insurer that has issued an annuity contract to be used to fund periodic payments pursuant to a structured settlement;

  (2)  "Code", the United States Internal Revenue Code, United States Code Title 26, as amended from time to time;

  (3)  "Discounted present value", the fair present value of future payments, as determined by discounting such payments to the present using the most recently published applicable federal rate for determining the present value of an annuity, as issued by the United States Internal Revenue Service;

  (4)  "Disinterested counsel", legal counsel that has no business relationship with any transferee of structured settlement payment rights, will not receive any compensation directly or indirectly from any such transferee in connection with representing the payee, and whose compensation for representing the payee will not be affected by whether the transfer occurs or does not occur;

  (5)  "Interested parties", with respect to any structured settlement, the payee, any named beneficiary designated in the annuity contract or structured settlement to receive payments following the payee's death, or, if the named beneficiary is a minor, the named beneficiary's parent or guardian, the annuity issuer, and the structured settlement obligor;

  (6)  "Payee", an individual who is receiving tax-free damage payments pursuant to a structured settlement and who wants to make a transfer of payment rights pursuant to the structured settlement agreement;

  (7)  "Qualified assignment agreement", an agreement providing for a qualified assignment within the meaning of Section 130 of the Internal Revenue Code, 26 U.S.C. Sec. 130, as amended from time to time;

  (8)  "Settled claim", the original tort claim resolved by a structured settlement;

  (9)  "Structured settlement", an arrangement established by:

  (a)  a.  Judgment or agreement in resolution of a tort claim providing for the periodic payment of damages excludable from the gross income of the recipient pursuant to Section 104(a)(2) of the Code; or

  b.  Agreement for the periodic payment of compensation pursuant to any workers' compensation act that is excludable from the gross income of the recipient pursuant to Section 104(a)(1) of the Code and which may be assigned pursuant to state law; and

  (b)  Where the periodic payments are:

  a.  Of the character described in subparagraphs (A) and (B) of Section 130(c)(2) of the Code; and

  b.  Payable by a person who is a party to the suit or agreement or to the workers' compensation claim or by a person who has assumed the liability for such periodic payments pursuant to a qualified assignment in accordance with Section 130 of the Code;

  (10)  "Structured settlement obligor", with respect to any structured settlement, the party that has the continuing periodic payment obligation to the payee pursuant to a structured settlement agreement or a qualified assignment agreement;

  (11)  "Structured settlement payment rights", rights to receive periodic payments, including lump sum payments pursuant to a structured settlement, whether from the settlement obligor or the annuity issuer, where:

  (a)  The payee is domiciled in this state; or

  (b)  The structured settlement was approved by a court of this state;

  (12)  "Transfer", any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration;

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

  (14)  "Transferee", a party acquiring or proposing to acquire structured settlement payment rights through a transfer from a payee.