annuitant

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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.