Legal funding

{
  "id": "MLC-T-INS-001980",
  "term": "Legal funding",
  "field": "Insurance and risk management",
  "definition": "A non-recourse cash advance provided to a plaintiff involved in a legal claim, typically for personal injury, in exchange for a portion of the future settlement or judgment. The funding is not a loan, as the plaintiff has no obligation to repay the money if they lose their case. Regulation of this industry, also known as litigation financing, varies significantly by state, with some jurisdictions imposing caps on interest rates and fees.",
  "url": "https://mlchart.com/terminology/insurance/legal-funding/"
}