How do Structured Settlements work?
Structured settlements are agreed to before a case goes to trial. Because of this, they help ease the pressure on the clogged court system. In 1982, laws were passed by Congress to regulate the administration of structured settlements. Many plaintiffs choose a structured settlement over a trial because if their case goes before a jury, the jury may not award them anything at all. Insurance companies are also eager to avoid trials. In the past, juries have awarded enormous settlements to plaintiffs. Insurance companies now often consider structured settlements a less expensive way to resolve a case than a jury trial. As for the government, there was a lot of motivation to organize and clarify structured settlement law. In wrongful death and injury cases, where structured settlements are commonly used, the award is intended to replace lost income. In the past, there were many cases in which large lump sum awards would be spent quickly. In the long run placing the recipient in the same po
