The term means any legal transfer of a liability to make periodic payments as damages on account of personal injury or sickness in a case involving physical injury or physical sickness if a) the transferee assumes the liability from a person who is a party to the suit or agreement; b) the periodic payments are fixed and determinable regarding amount and time of payment; c) the periodic payments cannot be accelerated, deferred, increased, or decreased by the recipient of such payments; d) the assignee’s obligation is no greater than the obligation of the person who assigned the liability; and e) the periodic payments tax-free to the recipient under section 104(a)(2).
