Structured settlements are cases where under law, the two parties pertinent to an injury compensation lawsuit tone down a judge's ruling on the way to pay for claims. This means that the accused party is supposed to pay a specific sum in an installment over an extended period of time. The duration the remittance lasts is dependant on the severity of the injury, which, if it involves maiming of the plaintiff, can last for a lifetime. This legal arrangement is signatory between the two sides that are usually brokered by the paying insurer. The agreed upon sum is then remitted on a regular basis till it is all expended.
On the legal scope, these structured settlements can only involve the insurer and the injured person who receives partial amounts every month or in another periodic basis as per the decision. In other cases, the side responsible for the physical challenges of the claimant can have the authority to delegate the payment responsibility to a neutral agency which shoulders the legal burden but whose money is received from the original perpetrator. The essence of this arrangement is to absolve the perpetrator, at least in its record, that it ever committed that act. This trend is normally preferred by well known companies that do not want to tarnish their names in historical retrospect.
These settlements also designate the recipient of the periodic compensation as a policy holder. Thus, they can continue receiving the money just like a pension for as long as they live if their claim extends to a lifetime.
Structured settlement also provides ease of payment for the neutral parties that remit payment on behalf of the perpetrator of the injury even without their being their insurers. Thus the sum they usually receive is exempted from taxation so that the claimant can receive exactly what he or she was originally provided for.
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