by John Darer CLU ChFC CSSC RSP
Liberty Life Assurance Company of Boston, a subsidiary of Liberty Mutual Insurance Company has made a significant improvement to its structured settlement annuity offering.
Effective November 1, 2010 qualified structured settlements assigned to Liberty Assignment Corporation will carry the guarantee of Liberty Life Assurance Company of Boston. A company spokesperson said that the new guarantee is in addition to the existing Liberty Mutual guarantee of Liberty Life Assurance Company of Boston.
The new guarantee is a welcome addition and fills the void left when Liberty Mutual stopped issuing surety bonds to back up the qualified assignee on new structured settlements several years ago. Since then, (up until November 1, 2010) the only guarantee in place was the unusual and unique guarantee by parent Liberty Mutual Insurance Company of the annuity issuer (as opposed to the assignee).
The structured settlement process is illustrated in the flow chart set forth below and gives the reader a better visual of how the two guarantees fit into the picture. The guarantees are also summarized below
- Guarantee of performance of qualified assignee, Liberty Assignment Corporation, by Liberty Life Assurance Company of Boston. Download LibertyLifeAssuranceBostonGuaranteeAssignment
- Guarantee of performance of Liberty Life Assurance Company of Boston by Liberty Mutual Insurance Company, a Fortune 100 company.
Is An Improvement to Non Qualified Assignment Program Coming?
Liberty Life is encouraged to develop a similar guarantee for its non qualified assignee, BARCO Assignments, Ltd. How about it Liberty?