If you’ve filed a claim for compensation after being injured due to someone else’s negligence in California, you may not need to go to court to receive said compensation. Often, it’s possible (and desirable) to arrive at a settlement agreement with the negligent party’s insurance company.
The settlement is designed to compensate you for damages incurred as a result of the injury. These may include medical bills, lost wages, pain and suffering, and other related expenses.
This overview will take a closer look at how a structured personal injury settlement works in California. It’s an option that may be available in some circumstances.
A structured settlement is a type of settlement that is paid out over time. Instead of receiving a lump sum one-time payment, with a structured settlement, you will receive regular payments over a set period of time. These payments can be made on a monthly, yearly, or other regular schedule, depending on the terms of the settlement agreement.
Structured settlements are often used in personal injury cases because they provide a number of benefits to both the plaintiff and the defendant. For the plaintiff, a structured settlement provides a steady stream of income over time. This may help ensure financial stability and security. For the defendant, a structured settlement reduces the immediate financial burden.
In California, state law governs structured personal injury settlements. Under California law, a structured settlement must meet certain requirements in order to be considered valid. These requirements include:
Once all parties agree upon a structured settlement, the defendant typically purchases an annuity from an insurance company. The annuity is designed to provide the regular payments specified in the settlement agreement. The plaintiff then receives regular payments from the insurance company over the set period of time.
Along with the benefits already mentioned, additional benefits a structured settlement may provide include:
If you’re seeking compensation after being injured as a result of another party’s negligence, be aware that your odds of securing said compensation may be greater if you have proper representation from a legal professional. Your lawyer can also discuss the pros and cons of a structured settlement in greater detail.
At Allegiance Law, a San Francisco personal injury lawyer is on hand to review your case and discuss your options. Learn more about what we can do for you by contacting us online or calling us at 415-404-6395.