Block 17.5 Article 2.3 Transfers of Structured Settlement Payment Rights

 

Possible Penalties Under Business and Professions Code When Transferring

Structured Settlement Payment Rights

 

The possible penalty is exclusive to the transfer company.  If the transfer company is in violation of California Insurance Code 10134-10139.5 they could endure penalties per the Business and Professions Code, according to California Insurance Code:

 

10139.4 states, “A violation of this article by a transferee shall constitute an unfair business practice pursuant to Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code and shall be subject to the penalties and other remedies of that chapter.”

 

Plus, according to 10139.1, if no compliance has been met under CA Insurance Code 10134-10139.5, any subsequent transfers of any additional structured settlement payments between the payee and the transfer company may be denied.

 

Not all states with Structured Settlement Protection Acts impose penalties to transfer companies for violations per their Business and Professions Code, or any other code for that fact.

 

This makes California a proponent of consumer protection.  If the transfer company knows there could be a fine to pay for any unfair business practices, they are less likely to do them, in the state of California.  Good for California.