Since the periodic payments agreed to by the parties are scheduled into the future, the arrangement is often referred to as:

Question

Options

• ATraditional claim settlement
• BLosses paid settlement
• CSecured claims settlement
• Dstructured claims settlement

• A
  18% (4)
• B
  5% (1)
• C
  5% (1)
• D
  73% (16)

Explanation

Structured claims settlement (D) is correct because the word "structured" directly describes the arrangement: payments are organized (structured) into a predetermined schedule of future periodic installments, rather than paid all at once. Options A ("Traditional"), B ("Losses paid"), and C ("Secured") are fabricated distractors - none are recognized terms in claims settlement or tort law for this concept; "losses paid" refers to an accounting method, not a payment arrangement, and "secured" relates to collateral, not payment scheduling.

Memory tip: Think of a structure as a framework built piece by piece over time - just like structured settlement payments are built out one installment at a time into the future. If payments are spread out and scheduled, they're structured.

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