A structured settlement is a
financial or insurance arrangement, including
periodic payments, that a claimant accepts to
resolve a personal injury tort claim or to
compromise a statutory periodic payment obligation.
Structured settlements were first utilized in Canada
and the United States during the 1970s as an
alternative to lump sum settlements. Structured
settlements are now part of the statutory tort law
of several common law countries including Australia,
Canada, England and the United States.
Although some uniformity exists, each of these
countries has its own definitions,
rules and standards for structured settlements.
Structured settlements may include income tax
and spendthrift requirements as well as benefits.
Structured settlement payments are sometimes called “periodic payments.” A structured settlement
incorporated into a trial judgment is called a
“periodic payment judgment."
