Last year, the State expanded the coverage of the North Carolina Guaranty Association to include structured settlement annuitities for North Carolina residents. This is especially important for people who receive annuities as part of a workers’ compensation or personal injury settlement. Coverage here. One part of the new law’s language was less than clear, which required an amendment. The amendment makes clear that annuity protection runs to the benefit of the actual beneficiary, the “payee” of the policy. The text can be found here. The amendment was enacted during the legislature’s short session this summer and signed by the governor. Hank Patterson and Narendra Ghosh assisted with the legislative effort.
Categories: Legislative Action
Tags: Hank Patterson, Legislation, Narendra Ghosh, NC Legislature, North Carolina, Personal Injuries, Structured Settlements, Workers' Compensation
Hank Patterson is one of the co-chairs for today’s NCAJ 16th Annual CLE on Workplace Torts and Workers’ Compensation. Hank is also speaking and presenting a paper entitled Structured Settlement Annuities and the N.C. Life and Health Insurance Guarantee Association.
Summary: From the perspective of the North Carolina Life and Health Insurance Guaranty Association, Senate Bill 780, enacted by the 2009 General Assembly did not accomplish its basic purpose of expanding coverage to structured settlement annuity payees. We concur. An additional amendment will be required to assure that annuity payees who are residents of North Carolina have the protection of the Guaranty Association.
Categories: News of the Firm
Tags: Articles, Hank Patterson, NC Legislature, NCAJ, Presentation, Structured Settlements, Workers' Compensation
The Statute of Repose Bill was signed by Governor Perdue on August 5, and becomes effective on October 1, 2009. The text of the bill can be found here.
The Guaranty Fund Bill was signed by Governor Perdue on August 7, and becomes effective immediately. The text of the bill can be found here.
Categories: Legislative Action
Tags: Legislation, North Carolina, Personal Injuries, Products Liability, Structured Settlements, Workers' Compensation
The North Carolina Life & Health Insurance Guaranty Association is a state agency that, as one of its dutites, provides a guarantee for an annuity bought by North Carolina residents. If the company that sells the annuity fails, then the Guaranty Association will take over paying the annuity up to a certain amount ($300,000 per person). This is similar to the role of the FDIC in protecting bank deposits.
Injured people who reach settlements in workers’ compensation and personal injury cases often are provided with annuities (called structured settlement annuitities) to cover future expenses related to their case, such as future medical expenses. Through a wrinkle in the law, many of these structured settlement annuities were not covered by the N.C. Guaranty Association.
Senate Bill 780 fixes this problem by expanded the coverage of the N.C. Guaranty Association to include structured settlement annuitities for North Carolina residents. The Bill has just been passed by the Legislature and is on the way to the governor for her to sign. Hank Patterson and Narendra Ghosh assisted with the legislative effort.
Categories: Legislative Action
Tags: Hank Patterson, Legislation, Narendra Ghosh, NC Legislature, North Carolina, Personal Injuries, Structured Settlements, Workers' Compensation
