Structured Settlement and Annuity Law in Arizona

While selling a structured settlement or annuity can be a very effective way for a family to manage big purchases or expenses, it’s critically important for those trying to sell part or all of future payments to know how their state of residence handles these deals. In Arizona, a 2002 law controls the way that structured settlement and annuity sales are approved by courts. Arizona structured settlement and annuity law contains some provisions that help protect structured settlement and annuity holders from agreeing to unfavorable or deceptive offers.

Arizona Structured Settlement and Annuity Law: Disclosure Requirements in Arizona

According to Arizona structured settlement and annuity law, the buyers of structured settlements and annuities, usually established firms that offer sellers up-front cash payments, must disclose certain information to the structured settlement or annuity seller. This includes the amount of the up-front cash payment, as well as the value of future payments. To show what future payments are worth, Arizona uses a valuation method called “discounted present value.” This valuation is commonly used in dozens of states to show what a structured settlement or annuity seller will get compared to what they sign away.

The disclosure required in Arizona includes information on any penalties arising from a breach of contract. Furthermore, the buyer must inform someone selling a structured settlement or annuity about their right to cancel within a certain time period.

Seeking Independent Professional Advice

Arizona structured settlement and annuity law requires the structured settlement or annuity buyer to advise the seller to get an outside opinion as to the tax and legal implications of the transfer. This helps ensure that the seller is fully informed before a structured settlement or annuity sale goes through. This requirement is common in many states as a consumer safeguard.


In Arizona, a court must approve a structured settlement or annuity sale. The court will look at a few basic criteria according to Arizona structured settlement and annuity law:

  • whether the sale is in the seller’s “best interests” or provides competitive terms
  • whether the sale allows the seller to continue to provide support payments for any dependents
  • whether the structured settlement or annuity sale contract contradicts any state law


When selling a structured settlement or annuity, it’s a good idea to shop around. The best structured settlement and annuity buyers will provide good value for your payment rights, and will support your financial plans with excellent customer service.

At CBC, our attentive staff will keep you informed during each step of your structured settlement or annuity sale. We have a great track record and a lot of experience helping structured settlement and annuity sellers comply with the  law in Arizona and other states. We can do all of the work required by the courts to make sure that you get your money when you need it. Let us work with you to get your structured settlement or annuity sale finalized.


About Us

The Covered Bridge Capital (CBC) brand was founded in 2004 with the mission of assisting individuals who are receiving structured settlement payments over time from court awards, insurance settlements, and other types of annuity payouts. Since then, our knowledgeable professionals have helped hundreds of clients to unlock the value of future payments and turn them into immediate cash.