The National Conference of Insurance Legislations (NCOIL) created the Model State Structured Settlement Protection Act as a template for states to model their own structured settlement laws around. Thirty-seven states have based their structured settlement laws on this document. It is broken up into seven sections that are briefed below.

Section 1: Title

This section is just what it sounds like. The name of the document is the "Structured Settlement Protection Act."

Section 2: Definitions

This section defines terms like annuity issuer, dependents, discounted present value, gross advance income, independent professional advice, interested parties, net advance amount, and many more. These terms are defined so the document cannot be misread or misinterpreted. For instance, structured settlement obligator is defined as, "with respect to any structured settlement, the party that has the continuing obligation to make periodic payments to the payee under a structured settlement agreement or a qualified assignment agreement." This way the document will be understood, leaving no room for questions or mistakes.

Section 3: Required Disclosures to Payee

This basically requires the transferee to type out exactly the amounts he/she owes the payee. It should also include due dates, penalties for late payment, the gross advance amount, and a statement that the payee has the right to cancel the agreement within three days. Other things are included like the net advance amount and a listing of all transfer expenses.

Section 4: Approval of Transfers of Structures Settlement Payment Rights

This section states that no structured settlement is legal unless authorized by a court of law or a responsible administrative authority. This authorization cannot take place unless the settlement is in the best interests of the payee, the payee has been told in writing by the transferee to seek additional advice, and the settlement does not break any laws or regulations.

Section 5: Effects of Transfer of Structured Settlement Payment Rights

This section explains that once the deed is underway, the obligator and the annuity issuer are no longer under liability. It is the transferee who is liable.

Section 6: Procedure for Approval of Transfers

This section says two things. First, it states that the transferee must fill out an application for approval at a hearing. Second, it requires transferee to contact all related parties 20 days before the hearing with copies of the application amongst other paperwork.

Section 7: General Provisions; Construction

This is basically a section of disclosures. It states that no parts of this act may be waved, that any settlements made before this act was approved will remain unchanged, what to do if the payee dies while the payments are still going out, and a few other issues that were not covered elsewhere in the document.