Carla, while drunk driving, caused an automobile collision that resulted in injury to Bob, who was a passenger in Carla’s car. Bob sued Carla in court for $3 million. The parties agreed to a structured settlement outside of court whereby Carla, instead of paying one lump sum of $3 million to Bob, would purchase an annuity that would pay Bob a monthly sum of $1,000 for a lifetime. Bob, as the annuitant, would benefit from the annuity that Carla purchased as stipulated by the settlement agreement.
annuitant
Definition
A person who is entitled to benefit from an annuity.
Definition from Nolo’s Plain-English Law Dictionary
The beneficiary of an annuity.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm
“An annuity is a contract that guarantees the payment of money to an annuitant upon certain intervals. Annuities are typically used to provide individuals with long-term economic protection against the risk of outliving their assets.” Lincoln National Life Insurance Co. v. Transamerica Life Insurance Co., 609 F.3d 1364, 1365 (Fed. Cir. 2010) (J. Moore).
