Qualified Settlement Fund does not always mean full market access
Some structured settlement brokers and settlement planners are advising their clients to use qualified settlement funds (via trusts or segregated accounts) as a means to give the plaintiff "full structured settlement annuity market access" in those cases where the plaintiff faces a defendant's insurer with a limited approved list of annuity issuers. Many times this is marketing hype.
Full market access, in cases involving single claimant qualified settlement funds, is an improbabilty. If you elect to go the qualified settlement fund route on a single claimant case, your primary reason to do so is your broker's promise of "full structured settlement annuity market access", and a structured settlement is desired by you or your client, you better be sure that the available markets are competitive. If your structured settlement broker or settlement planner claims to have full market access for single claimant qualified settlement funds, insist on proof in writing.
Glen, while some property and casualty companies have approved lists of annuity markets, generally there is a limitation to AM Best A+ or better ratings.
More often today cases involve brokers representing both sides and the plaintiff/claimant adviser has active participation and input.
If you would like to further discuss this feel free to give me a call
Posted by: John D. Darer, CLU ChFC CSSC RSP | May 10, 2009 at 01:48 AM
Hmm? I always thought the Property & Casualty Co's. selected the Annuity Issuer?
Based on the information I just read it appears market access is based on brokers limitations?
Posted by: Glen James | May 10, 2009 at 01:05 AM