Structured Settlement Laws & Rates by State

Understanding Structured Settlement Laws Across All 50 States

Every U.S. state has enacted a Structured Settlement Protection Act (SSPA) governing the sale of structured settlement payment rights. Illinois was the first state to pass its SSPA in 1998, followed by Kentucky and Connecticut. New Hampshire was the last state to enact its law in 2021. While all 50 SSPAs share common principles — requiring court approval, disclosure of terms, and a best-interest determination — the specific requirements vary significantly from state to state.

Some states, like Florida, require in-person court appearances for the payee. Others, like North Carolina, cap discount rates at prime plus 5% and limit fees to 2% of the net amount. Michigan caps the total discount at 25% per year. Georgia gives sellers a 21-day cancellation period — the longest in the nation — while most states offer just 3 days. North Dakota is the only state where a second violation of the SSPA is a criminal misdemeanor rather than a civil infraction.

Workers' compensation structured settlements face the strictest regulations. At least 20 states — including California, Florida, New York, Ohio, and Michigan — explicitly prohibit the transfer of workers' comp structured settlement payments, regardless of the payee's financial situation.

The practical impact of these differences is substantial. Sellers in California and Texas benefit from 22-26 active buyers competing for their payments, resulting in discount rates as low as 7.5% and court approval in as little as 25 days. Meanwhile, sellers in Wyoming or Mississippi may face only 4-5 competing buyers, rates above 14%, and court timelines stretching to 80+ days. Understanding your state's specific laws, market conditions, and protections is the most important step in making an informed decision about selling your structured settlement.