The rules require Admiral to calculate periodic payment claims liabilities at a "risk free" interest rate.
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However, the change could also increase insurers' exposure to longevity risk as a result of greater propensity for claimants to take the periodic payment orders (PPOs) alternative.
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The idea that every person—regardless of who they are, whether they're employed, or how much they make—should receive a periodic payment to spend on whatever they choose.
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Accordingly, the defendant or property/casualty insurer transfers the obligation, through a legal device called a qualified assignment, to a third party. The third party, called an assignment company, will require the defendant or property/casualty company to pay it an amount sufficient to enable it to buy an annuity that will fund its newly accepted periodic payment obligation. If the claimant consents to the transfer of the periodic payment obligation (either in the settlement agreement or, failing that, in a special form of qualified assignment known as a qualified assignment and release), the defendant and/or its property/casualty company has no further liability to make the periodic payments. This method of substituting the obligor is desirable for defendants or property/casualty companies that do not want to retain the periodic payment obligation on their books.
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The defendant, or the property/casualty insurance company, generally assigns its periodic payment obligation to a third party by way of a qualified assignment ("assigned case"). An assignment is said to be "qualified" if it satisfies the criteria set forth in Internal Revenue Code Section 130. Qualification of the assignment is important to assignment companies because without it the amount they receive to induce them to accept periodic payment obligations would be considered income for federal income tax purposes. If an assignment qualifies under Section 130, however, the amount received is excluded from the income of the assignment company.
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This provision of the tax code was enacted to encourage assigned cases; without it, assignment companies would owe federal income taxes but would typically have no source from which to make the payments. The qualified assignment company receives money from the defendant or property/casualty insurer, and in turn purchases a "qualified funding asset" to finance the assigned periodic payment obligation. Pursuant to IRC 130(d) a "qualified funding asset" may be an annuity or an obligation of the United States government. In an assigned case, the defendant or property/casualty company does not wish to retain the long- term periodic payment obligation on its books.
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Among other things, the payments must be fixed and determinable, and cannot be accelerated, deferred, increased or decreased by the recipient.Adam F. Scales, supra note 3, at 876. For many structured settlement recipients, the periodic payment stream is their only asset. Therefore, over time and as recipients’ personal situations change in ways unpredicted at the settlement table, demand for liquidity options rises.
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Many jurisdictions require periodic payment of maintenance fees to retain the validity of a patent after it is issued and during its term. Failure to timely pay the fees results in loss of the patent's protection. The validity of an issued patent may also be subject to post-issue challenges of various types, some of which may cause the patent office to re- examine the application.
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In the United States, structured settlement laws and regulations have been enacted at both the federal and state levels. Federal structured settlement laws include various provisions of the Internal Revenue Code. State structured settlement laws include structured settlement protection statutes and periodic payment of judgment statutes. Forty-seven of the states have structured settlement protection acts created using a model promulgated by the National Conference of Insurance Legislators ("NCOIL").
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In the investment advisory industry, a management fee is a periodic payment that is paid by an investment fund to the fund's investment adviser for investment and portfolio management services. Often, the fee covers not only investment advisory services, but administrative services as well.Lemke and Lins, Regulation of Investment Advisers, §2:9 (Thomson West, 2013 ed.). Usually, the fee is calculated as a percentage of assets under management.
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An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator. Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule.
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The provision requires that a taxpayer make a good faith down payment of 20 percent of any lump sum offer-in-compromise with any application for an offer. For periodic payment offers, the taxpayer is required to comply with their own payment schedule while the offer is being considered. The provision also provides that an offer is deemed accepted if the IRS does not make a decision with respect to the offer within two years from the date that the offer was submitted.
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Retail Lease in Chicago A Lease in Retail means a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment. A legal document outlining the terms under which one party agrees to rent property from another party. A lease guarantees the lessee (the renter) use of an asset and guarantees the lessor (the property owner) regular payments from the lessee for a specified number of months or years.
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Income from the estates was of two sorts: fines and rents. The former refers not to judicial punishment but to one-off payments made on the taking up or renewing of a lease. The latter was a periodic payment made by a tenant, just as in modern usage. In 1716, the Chapter of Rochester Cathedral tried to obtain a voice in the management of the estates, in particular claiming that all fines and rents should be passed directly to the Brethren of St. Bartholomew's Hospital.
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In the United States, child support is the ongoing obligation for a periodic payment made directly or indirectly by an "obligor" (or paying parent or payer) to an "obligee" (or receiving party or recipient) for the financial care and support of children of a relationship or a (possibly terminated) marriage. The laws governing this kind of obligation vary dramatically state- by-state and tribe-by-tribe among Native Americans. Each individual state and federally recognized tribe is responsible for developing its own guidelines for determining child support. Typically the obligor is a non-custodial parent.
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Mapped: Paid paternity leave across the EU...which countries are the most generous? Published by The Telegraph, 18 April 2016 In the case of male same-sex couples the law often makes no provision for either one or both fathers to take paternity leave. ;Child custody Fathers' rights movements such as Fathers 4 Justice argue that family courts are biased against fathers.Fathers 4 Justice take their fight for rights across the Atlantic Published by The Telegraph, 8 May 2005 ;Child support Child support is an ongoing periodic payment made by one parent to the other; it is normally paid by the parent who does not have custody.
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Unlike a charter flight, a wet-leased aircraft operates as part of the leasing carrier's fleet and with that carrier's airline code, although it often retains the livery of its owner. US and UK accounting rules differ regarding operating leases. In the UK, some operating lease expenses can be capitalized on the company's balance sheet; in the US, operating lease expenses are generally reported as operating expenses, similarly to fuel or wages. A related concept to the operating lease is the leaseback, in which the operator sells its own aircraft for cash, and then leases the same aircraft back from the purchaser for a periodic payment.
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The military term is somewhat like the financial term "reset", which is a generic concept in the financial world. Reset, which also known as fixing, is a generic concept in the financial markets which refers to the determination and recording of a reference rate, usually in order to calculate the settlement value of a periodic payment schedule between two parties. The military term is somewhat like the computing term "reset", which means to clear any pending errors or events and bring a system to normal condition or initial state. The military term "reset" is unlike its finance and computing counterparts in that the military usage anticipates three related components: repairing, replacing and recapitalizing.
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Another issue she addressed, while at the National Association of Securities Dealers, was the NASD's regulatory activities regarding inappropriate sales of certain investment products to members of the armed forces. Testifying before a congressional subcommittee in May 2006 concerning the NASD's financial education programs focused on military service members and their families, she addressed issues raised by a particular broker-dealer, First Command Financial Planning, Inc. of Fort Worth, Texas, which had been making inappropriate sales of products and services, including the sale of an investment product called Periodic Payment Plans or PPPs. First Command had targeted and sold more than a half million complicated and often extremely expensive PPPs to servicepersons.
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Josh Clark, "How can mortgage-backed securities bring down the U.S. economy?", How Stuff Works These subprime MBSs issued by investment banks were a major issue in the subprime mortgage crisis of 2006–2008 . The total face value of an MBS decreases over time, because like mortgages, and unlike bonds, and most other fixed-income securities, the principal in an MBS is not paid back as a single payment to the bond holder at maturity but rather is paid along with the interest in each periodic payment (monthly, quarterly, etc.). This decrease in face value is measured by the MBS's "factor", the percentage of the original "face" that remains to be repaid.
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In the less common unassigned case, the defendant or property/casualty insurer retains the periodic payment obligation and funds it by purchasing an annuity from a life insurance company, thereby offsetting its obligation with a matching asset. The payment stream purchased under the annuity matches exactly, in timing and amounts, the periodic payments agreed to in the settlement agreement. The defendant or property/casualty company owns the annuity and names the claimant as the payee under the annuity, thereby directing the annuity issuer to send payments directly to the claimant. One of the reasons an unassigned case is less popular is that the obligation is not truly off the books, and the defendant or casualty insurer retains a contingent liability.
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An amortization calculator is used to determine the periodic payment amount due on a loan (typically a mortgage), based on the amortization process. The amortization repayment model factors varying amounts of both interest and principal into every installment, though the total amount of each payment is the same. An amortization schedule calculator is often used to adjust the loan amount until the monthly payments will fit comfortably into budget, and can vary the interest rate to see the difference a better rate might make in the kind of home or car one can afford. An amortization calculator can also reveal the exact dollar amount that goes towards interest and the exact dollar amount that goes towards principal out of each individual payment.
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Agistment originally referred specifically to the proceeds of pasturage in the king's forests in England, but now means either: # the contract for taking in and feeding horses or cattle on pasture land, for the consideration of a periodic payment of money; # the profit derived from such pasturing. Agistment involves a contract of bailment, and the bailee must take reasonable care of the animals entrusted to him; he is responsible for damages and injury which result from ordinary casualties, if it be proved that such might have been prevented by the exercise of great care. There is no lien on the cattle for the price of the agistment unless by express agreement. Under the Agricultural Holdings Act of 1883, agisted cattle cannot be distrained on for rent if there be other sufficient distress to be found, and if such other distress be not found, and the cattle be distrained, the owner may redeem them on paying the price of their agistment.
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