Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe instrument under which the * personal injury lump sum is paid must:
(a) identify the * structured settlement or * structured order under which the lump sum is provided; and
(b) only allow for the payment of the lump sum to be made to:
(i) the * injured person; or
(ii) a trustee of a trust of which the injured person is the beneficiary; and
(c) contain a statement to the effect that the right to receive the lump sum cannot be assigned, and cannot be commuted or otherwise cashed - out early.
Note: Division 2A of Part 10 of the
Life Insurance Act 1995 makes a purported assignment or commutation (or
cashing - out) that is contrary to paragraph (c) ineffective.