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Gross Me Out | Dumbest Things Written About Structured Settlements | Live From Reno | NV

Thomas Gross of Reno Nevada is invited to visit the nearest branch of The Clue Store for abject ignorance about structured settlements in his blog entitled Structured Settlement Companies: Find The Best Deals from Structured Settlements Companies".

I'm not going to waste time critiquing his "F" rated work, but let's just say that he demonstrates an abject failure to comprehend the difference between a life settlement and a structured settlement. He also cites as "recent" a March 4, 2005 Bernstein research call.

Don't be Grossed Out!  Thomas Gross is far from a structured settlement expert and is this week's winner of Dumbest Things Written About Stuctured Settlements. 

If you are going to write something about structured settlement why not research the topic sufficiently?  Short order chefs who cut corners will be treated accordingly.

 

ELNY Liquidation: Settlement Planner Misses The Plot

Thursday is the Ides of March and with it comes the Executive Life of New York Liquidation hearings at the New York State Supreme Court Nassau County in Mineola . This seems to be lost on a structured settlement industry colleague whose continued posting of the following false information is in considerably bad taste under the circumstances.

Here's what the settlement planner states:

"Q: Historically, have any other annuity companies failed and left customers with nothing?

A: Not in the settlement industry. Executive Life was the only carrier writing settlement annuities (back in the late 80's and early 90's) that went into receivership. When they went into receivership the courts
treated settlement recipients at a higher level since their money with Executive Life was "Settlement" money, not a traditional investment. The courts instructed Executive and the assignment companies to pay 100% on the dollar for the remainder of all policies. It was unfortunate that we had to experience that event (the Executive collapse) but it did show that the safety systems in place had the support of the court(s) and allowed settlement recipients to be made whole without interruption."

S2KM reported on November 27, 2011 that with respect to Executive Life of New York:

• For the 1459 Schedule 1.15 SSAs with anticipated shortfalls:
  • 156 SSAs are estimated to have been factored. Note: reliable industry sources have informed S2KM the actual number of current ELNY SSAs previously factored is considerably higher.
  • 1100 SSAs have "uncovered amounts" in excess of $100,000 each on a present value (PV) basis including
  • 237 SSAs which have "uncovered amounts" in excess of $1,000,000 PV each including
  • 17 SSAs which have "uncovered amounts" in excess of $5,000,000 PV each.
  • The largest ELNY SSA has an "uncovered amount" of $25,692,377 PV.
• According to Schedule 1.15, the total percentage of each ELNY SSA contract value "protected" by ELNY's remaining assets, state guaranty fund payments plus additional enhancements varies from 34 percent to 100 percent depending upon the individual contract.

Comments

While it might be correct to say historically annuity companies have failed and none have left customers with nothing, it's leaving out something material (i.e. see immediately above)

The NSSTA has a consderable current and historical document repository available to its members.

The structured settlement planner is a member of NSSTA. According to a January 8, 2007 NSSTA memo about Executive LIfe Insurance Company (ELIC) "a small number of structured settlement annuitants, estimated to be no more than 300, suffered shortfalls in their subsequent payments because their annuities were too large for guaranty funds to make much of a difference, or the original tortfeasor in their case had, itself, become insolvent. According the California Department of Insurance (CDI), the average policyholder suffered an eight percent (8%) shortfall in payments as a result of ELIC’s insolvency."

There is no point in naming the structured settlement planner who has already displayed a generous amount of apathy when it comes to correcting information on his website. Nobody likes to be told to "clean up their room", but at least an apology is warranted to those ELNY victims (facing benefit reductions that could be over 50% )for the settlement planner's indifference.

Dumbest Things Said About Structured Settlements- "Structured Cash Settlement"

 

My financial "Illiteradar" has beamed onto " Structured Settlements: Methods, Suitable Clients and Assistance", "made for advertising"  (22 ads!) shlock published by yet another anonymous poster whose site is registered through Go.Daddy.com. Here's  a slice of financial ignorance on display at structured-cash-settlement.com :

"The secondary market is the structured settlement company".

"On other hand, the accussed  party will be the one to to pay the life insurance company".

"Unlike the buy and hold method, the third party will be assigned in purchasing thee annuity"

"In yearly payments, the agreed amount will be divided into equal amounts.   It will be distributed on the period that is agreed by both parties".

"In inflation hedging, payments may depreciate or increase over a period of time.  If the economy is good, then the money will likely increase.  On the other hand, if the economy is in crising, then the money will depreciate".

"In monthly indexed installments, the payment can be done by month, every 3 months or 6 months.  Payments that changed in amount due to some financial index is tracked over time".

"Clients must be qualified for Social Securoty benefits either as retiree or must meet the criteria of the U.S. federal health program"

In its post " Fundamentals of Structured Settlements"

"When we say annuities, we mean of regular deposits to regular deposits to a savings account, monthly home mortgage payments and monthly insurance payments.  The payment may be done weekly, monthly, quarterly, yearly or in any time interval as long as it guarantees future payments."

"As long as you settle it properly, the structured settlement may reduce the complainant’s tax obligation and may even lead in tax-free senarios"

"We invest our money to double or triple the money we invest in a couple of years".  "Look for the flaws and the brighter side".

"On the other hand, its not even bad if we squander our money but if we squander it too much.  Then, its bad after all.  Just buy the things that you need and not the things that you want. If not, there will be no money left for you, without you knowing it." 

In its post on Wrongful Death... kudos may be due...

"Your lawyer will "advice" you as to whether a wrongful death clam can be made"

Comment: Not only CAN they "be made", but I've dined at several seafood restaurants that seem to have specialized in "wrongful death clams". Very popular with the "sharks" I might add.

(All emphasis ours!)    Cue the circus music!

 

There are a number of legitimate primary market practitioners who have been unfortunately and unwittingly associated with this tripe due to: 1) their subscription to Google Adwords which placed their ads on the aforementioned website;  2)Due to the website publisher's use of the Amazon carousel widget; 3) Due to the publisher placing a video podcast of them on the site. I was actually tipped off by a Google news alert which referred to the posting of a video on the site which featured an industry colleague.

 

 

 

 

 

 

"Bill & Ted's" Excellent Structured Settlements!

"A structured settlement is a monetary payment that is given to a distinct man or woman who faces injuries caused by an accident of any kind. An insurance coverage company has the responsibility of providing this payment. The really excellent benefit of these structured settlements is that they provide an ongoing revenue for the injured team who may well not be ready to go on the workplace and make cash. With the help of these structured settlements, he or she can easily meet his monetary obligations".

-Automated Forex System Trading on " Structured Settlement Dangers"  December 10, 2011

 

Dumbest Things Said About Structured Settlements 22: Marc Andrews

"Marc Andrews is in the structured settlement industry and has been a financial advisor to countless people in tort lawsuits" Oh dear! Judging by his "How Structured Settlement Annuities Work" posted on Ezine, we have yet another example of people who are in over their heads, who appear to lack both a fundamental understanding of structured settlements and the ability to articulate it.

Dumbest Things Written About Structured Settlements is our ongoing commentary about such useless writings that take up Internet "shelf space" and do little more than misinform consumers.  It is our hope and belief that by holding people accountable for disseminating misinformation, that such writers will be motivated to do better research in the future, avoid "the lazy way out" and think about the impact the misinformation has on consumers BEFORE writing about structured settlements.

General Comments

1. Who is Marc Andrews?  Despite his representation that he "is in the structured settlement industry", I've never heard of this guy (as you can imagine I'm pretty wired into what's going on).  Furthermore, a member search at the websites of the National Structured Settlement Trade Association (NSSTA) and Society of Settlement Planners (SSP) does not show Marc Andrews as member.
2. Ezine has previously shown itself as an unreliable source of information on structured settlements. They take any one who writes; there is no real screening process even through the writers are mischaracterized as "experts",  by default.

Dumb Statement 1  "If you have been into legal battles, especially when you are up against big corporations, the situation is most likely to end up with something like a structured settlement annuity"

Comments:

1. The Situation is a dude with washboard abs on the show Jersey Shore who pals around with an imp named Snooki
2. The Internal Revenue Code Section 130(d) DOES NOT refer to "something like a structured settlement annuity" It's either funded with a structured settlement annuity or an obligation of the United States government.

Dumb Statement 2" If you are not familiar with the term, the structured settlement annuity is a financial arrangement and sort of an insurance that you will be paid accordingly".

Comment: A structured settlement is a financial arrangement. A structured settlement annuity is an insurance product

Dumb Statement 3 "This makes it easier for the other party to pay up even when the amount is so high because they are not required to come up with a lump sum".

Comment: A structured settlement requires the paying party to come up with with the cost iof the structured settlement annuity in cash.

Dumb Statement 4 With the advent of paying cash for structured settlement payments, both parties will be in a win-win situation. The one who will pay can do it easily by opting for structured settlement annuity and you will get what you rightfully deserve.

Comment: Isn't the topic "How Do structured settlement annuities work?

Dumb Statement 5 "The concept of accepting cash for structured settlements was first practiced in countries like the United States and Canada.As of today, this idea that may even lead to selling structured settlement is included on the statutory tort law in various common law nations like the US, Australia, England and Canada".

Comment: For $200+ you too can have Pat Hindert's text book. Apparently it's a whole other thing to show you comprehend what you've read.

Dumb Statement 6 "If you are the injured party, you are the claimant in this case. The insurance carrier in this scenario is the defendant".

 Comment: Unless your litigation is Louisiana, the insurance carrier is not a Defendant
 

Dumb Statement 7  "You will drop the charges against the defendant and they will pay the agreed amount on a series of payments that can be done periodically or resort to companies that will offer to purchase  structured settlement".

   

Comments:  'Dropping the charges" is an expression usually associated with a criminal case. Personal injury litigation is a civil action. Defendants don't resort to companies that purchase structured settlement".

  

Marc Andrews' Article Source: http://EzineArticles.com/2331376

Dumbest Things Said About Structured Settlements-18 Jim O'Neal on CSSC

 I see dumb, people!

"When you choose a structured settlement consultant, make sure that you choose the certified one who has no affiliations with your insurance company or the liability carriers such as the annuity carriers so that you will be prioritized in the case.

 

 

If possible, you must look for one with a sworn affidavit that he is not affiliated to these companies. Because if he is, that’s a loss in your end. Where do you find someone of this kind?"   Jim O'Neal  on structured-settlement-consultant.com  (emphasis ours)

 

Is O'Neal in favor of Treasury Funded Structured Settlements or is his l

" What is a Certified Structured Settlement Consultant" just plain dumb?  Here's a clue: "They are the experts in planning the structured settlement annuity that suits the best for you."  You may draw your own conclusions.

P.S. On one aspect I do have to hand it to Jim O'Neal. He appears to represent the NSSTA Certified Structured Settlement Consultant program more accurately than Delta Settlements' Thomas Dunlap of Minnetonka, Minnesota, who continues to hold the distinction of "credential puffer" for the outrageous mischaracterization on his website that the 4 days in the vicinity of "Touchdown Jesus" that  he spent earning his CSSC credential equates to being "earned through the Executive MBA program at University of Notre Dame"  (as of August 3, 2011 at 1000am EDT.)  On his LinkedIn profile Dunlap refers to having achieved the " CSSC Executive degree from Notre Dame University"  (emphasis ours) . Notre Dame University is of course an entirely different institution which as I've previously pointed out is based in Zouk Mosbeh Lebanon (with Us offices in Ann Arbor, MI and Washington DC)

 

The "Dunnest" Things Said About "Annuitys (Sic) and Structured Settlements

Virginia Dunn of Integrity Funding Sources, has "resurfaced" with all the fervor of a paraphrased Sam The Sham and the Pharoahs lyric:

I swear by the hair on my "Ginny" chin chin

I'm gonna find a way to get in

I'm gonna keep hangin' around

Till I huff and puff and blow the structure "house" down

Let's set aside the snafu in the title of the Portland Oregon based cash now pusher's post "Annuitys (sic) & Structured Settlements: The Controversy Of Selling Payments" which occurs throughout the post

Virginia M. Dunn: "Is it legal to sell your structured settlement or annuity payments? Your insurance company will tell you "NO". And yet people are selling them all the time. What is the real scoop here?"

Structured Settlement Watchdog:  The majority of states have structured settlement protection acts which govern the process of selling structured settlement payment rights. The structured settlement protection acts were put in place to protect consumers, in part because prior to their enactment it was not uncommon to see discount rates charged by purchasers that were in the stratosphere. If an insurance company is telling you NO as Virginia Dunn alleges then perhaps the individual has not satisfied the requirements of the structured settlement protection act in their state, or the person being canvassed is ignorant. Despite Ms. Dunn's misleading allegations, most insurance companies hire law firms to make sure that any selling transaction of structured settlement payment rights complies with the structured settlement protection acts and applicable Federal law. If she finds fault with the law then the beef is with legislators not the insurance companies trying to comply with the law.

Virginia M. Dunn: "The annuities themselves represent a very large income stream for insurance companies. ...the fact that the settlement awards are structured provides a means for the insurance industry to secure huge tax breaks from the government. Here is their pitch: By structuring the payments of an injury award over time, the insurance company is providing long-term support for the injured party, thereby keeping them off of welfare. By keeping these people off of the roles of government subsidy, insurance companies are providing a valuable public service - hence, they should qualify for tax breaks.

Structured Settlement Watchdog:Structured settlements for payment of damages that qualify under IRC 104(a)(2) [physical injury or physical sickness and wrongful death] offer income tax free benefits.  The tax subsidy also applies to workers compensation payments under IRC 104(a)(1)

Were there not a tax break under IRC 130, which creates an income tax exclusion for a company that takes on qualified assignments, purchases and owns qualified funding assets (such as annuities and United States Treasury obligations), subject to certain qualifications, victims of accidents, survivors of those killed in accidents or by the negligence of others would have fewer opportunities to structure. 

Prior to the Periodic Payment Settlement Act of 1982, such instruments were held by the defendants and insurers of those defendants. These parties had no legal obligation to enter into structured settlement agreements, but if they did they were saddled with a contingent liability on their books. And, if the annuity company were to later go insolvent as was the case with Executive Life of California (and may yet be the case with Executive Life of New York) the Defendant or Insurer with these contingent liabilities ended up having to make up a shortfall.

Last on this point, the ability to do a qualified assignment benefits the plaintiff in that their financial future is not tied to the financial fortunes of the Defendant or its insurer as a general creditor. Most assignees permit the plaintiff or payee to be a secured party of the assignee. The Defendant wins too because they it/they get to write off the paid loss when the obligation transferred to the assignee.

The structured settlement watchdog does not mind educated criticism of structured settlements. In my opinion, the least someone like Ginny Dunn can do is do the research instead of reminding me of another paraphrase of a Sam the Sham and the Pharoahs classic...  "Wooly Bullsh*t"

In conclusion it's worthy of note to observe the irony that Integrity Funding Sources uses the moniker IFS, to promote its cash now philosophy, while another unrelated company on the primary side of the market, also called IFS owns multiple structured settlement brokerages.

Dumbest Things Said About Structured Settlements-13: Annuity Digest

Just because you are a Chartered Financial Analyst doesn't mean you have "street cred" when it comes to structured settlements as Tom Cochrane CFA 's April 12, 2011 article  "Structured Settlements and Annuities" shows.Tom Cochrane is the founder and publisher of Annuity Digest.

The Chartered Financial Analyst(CFA) designation is an international professional certification offered by the CFA Institute to financial analysts who complete a series of three examinations. To become a CFA Charterholder candidates must pass each of three six-hour exams, possess a bachelor's degree from an accredited institution (or have equivalent education or work experience) and have 48 months of qualified, professional work experience. CFA charterholders are also obligated to adhere to a strict Code of Ethics and Standards governing their professional conduct

Well Snooty Dooby Do, who are you...? The Certified Structured Settlement Consultant designation, awarded by the National Structured Settlements Trade Association (NSSTA) merely requires "4 days in the vicinity of Touchdown Jesus". Judging solely by the Annuity Digest "disaster" shown below, the structured settlement watchdog submits to you the CSSC is a FAR BETTER measure than the CFA when determining someones street credibility on the subject of structured settlements.

Here's what the Chartered Financial Analyst says about structured settlements

"a basic structured settlement scenario might look something like the following:

• Injured person A is awarded $1 million in damages as a result of a personal injury.
• The insurance company that provides liability coverage to the party responsible for the injury of person A is the defendant in the tort suit.
• Instead of paying a lump sum (and in exchange for person A agreeing to dismiss the suit and accept the settlement), the insurance  company opts to award damages through a series of periodic payments to person A—the “structured settlement.”
• Assuming that the structured settlement meets certain IRS guidelines, the payments to person A may be excluded from gross incomefor income tax purposes.
• The insurance company may choose to fund the structured settlement through the purchase an annuity from a life insurance company".


Comments

1. An award IS NOT a settlement.
2. Unless you are in a direct action state such as Louisiana, the insurance company IS NOT the Defendant.
3. An insurance company DOES NOTaward damages. If an insurance company is subject to an award it pays money to resolve a law suit it's likely  that it has been ordered by a Court or arbitrator to do so. Alternatively it may make an offer of settlement, or it may respond to a settlement demand made by the party suing or claiming against its insured. If it agrees to settle  The payment of money, in such cases, is the result of a compromise  or meeting of the minds. It is not an award.
4. The exclusion from income (for damages on the account of physical injury or physical sickness (or workers' compensation)is set forth in the Internal Revenue Code.  
   

 

Dumbest Things Said About Structured Settlements-12 AllSettlements.com

In "honor" of its "treatise" on Life Insurance Structured Settlements", a company called Atlantis Marketing out of San Diego California is the owner of this weeks winner of "Dumbest Things Said About Structured Settlements".

Allsettlements.com

The main reason for having insurance is so that we can remain financially solvent and able to pay for our medical bills, lost wages and to replace major items and assets that have been damaged or destroyed due to accidents or negligence by another party.

Comment

1. Insurance is a risk management tool.
2. Insurance is not always acquired to cover the risk of an accident or negligence. For example if you buy life insurance an dlater die of natural causes, it's no accident.

Allsettlements.com 

 In the case of a life insurance settlement, the structured settlement annuity is set up to provide an ongoing periodic payment to the plaintiff (also often referred to as the claimant; versus the insurance carrier).

Comments

is Allsettlements.com referring to a life settlement available to the living or the settlement options from a life insurance policy available to the survivors of the dead? This ones easy. Regardless of which applies, no structured settlement annuity is set up!

Allsettlements

Life insurance structured settlements feature set payment amounts paid out periodically over a predetermined time frame; usually long term

Comments

No such thing as a life insurance structured settlement. However, life insurance companies issue structured settlements annuities.

Allsettlements

However, even if we are completely in the right and legitimately owed an award, we may not immediately have access to the full amount of that award.

Comments

1. If choose to take cash you do, however that may not be in your best interest.
2. Sometimes you are not completely in the right and the case settles in your favor.

Allsettlements

While many of these structured settlements feature periodic payments, you can also contact different companies or your insurance provider to request various options such as deferred payouts (for tax relief purposes), single and joint life annuities, and medical underwritten annuities.

Comments

Single life annuities, joint life annuities and medically underwitten annuities also feature periodic payments. There are many ways you can structured your settlement. You can have more than one choice in the same structured annuity contract. Here are examples of the ways you can structure your settlement payments.

Mark Alford is listed as the administrative contact for Allsettlements.com.   Grade D

 

 

"Bridge" On The RIver "Cry"

The structured settlement watchdog's heart cries for Bridge Settlement Corporation. The Structured Settlement Industry veteran inexplicably lists American Home Assurance Company as one of its "Life Insurance Companies"  on its website (as of March 12, 2011).

American Home Assurance Company was the former name of Chartis, a Stock company that traces its roots to 1899. American Home Assurance Company is a Fire & Casualty insurance company NOT a life insurance company. For a period of time it also served as the qualified assignment company for structured settlements written through AIG subsidiary American International Life Assurance Company of New York.  which was merged into United States Life Insurance Company in The City of New York effective December 31, 2010. The rebranding of American Home Assurance Company to Chartis took place effective January 18, 2010.

Way to keep your website "accurate" AND "up to date" Bridge!