by Structured Settlement Watchdog®
A highly respected settlement consulting firm, which was neither in business, nor were its associates in business, when Executive Life Insurance Company of New York was operating, appears to be "at sixes and sevens" with structured settlement history as it applies to ELNY.
Using an ELNY shortfall victim as a prop, here's what they say:
"The defense broker is responsible for protecting the best interests of the defense, not the plaintiff. That often means proposing a structured settlement offered by an insurance company tied to the defense, regardless of whether or not that structure is the best deal for the plaintiff".
Juxtaposed Against This, as a Component of Their Value Proposition
"When the plaintiff’s attorney brings in a structured settlement broker for the plaintiff, the plaintiff then has an advocate. That broker will work with the defense to select an option that is agreeable to both sides, and any reputable plaintiff broker will only present options from the most highly-rated insurance companies".
Now Consider These Facts
FACT: At the time each and every Executive Life Insurance Company of New York structured settlement annuity was placed Executive Life Insurance Company of New York had the very highest rating from A.M. Best Company. The highest rating at the time was an A+(Superior).
FACT: Executive Life Insurance Company of New York structured settlements were also placed by plaintiff structured settlement advisors, including one, who at one time was one of the the largest contributors to AAJ, then known as the Association of Trial Lawyers of America. At least one of the contracts placed by that big ATLA contributor is in a shortfall status.
Upon information and belief several plaintiff consultants still practicing in 2016 wrote ELNY business. in the 1980s.
It is unfortunate when industry colleagues choose to promote their business without due regard to then current events and then recent past events that should have given them pause, and failing to assign any possible fault to those who placed or approved the placement of such annuities, including but not limited to those the colleague blames, judges , plaintiff lawyers and financial advisors, I have written and podcasted extensively on the volume of information available at the time that should have given anyone pause.
The implication that a rating review is sufficient structured settlement due diligence has now been proven wrong in over 1,000 instances.
Former stock broker EF Hutton's long running tag line was "When EF Hutton Talks People Listen". The following ad was often seen on prime time TV from at least 1982-1986, a time period covering the majority of the Executive Life Insurance Company of New York structured settlement annuities
If only people listened to EF Hutton, when EF Hutton yanked First Executive products from their shelves in early 1984, which the Wall Street Journal revealed represented a significant percentage of First Executive's overall sales. Only months earlier on November 5, 1983, the New York Times reported that Merrill Lynch and other wire houses, yanked Executive Life products and others from their shelves in the aftermath of the Baldwin United and Charter failures. ALL of the ELNY structured settlement annuities were placed by structured settlement brokers AFTER these mainstream news items were published and syndicated throughout the country. When one examines history, one can draw an obvious conclusion that parties were drawn to the rates and, if there was any concern, justified them by AM Best ratings as the original Periodic Payment of Judgments Act of 1980 set forth.