The National Structured Settlement Trade Association states that "as a nonprofit organization that does not sell insurance products in New York or any other state, the NSSTA is allowed to inform the public about the role of insurance regulation in protecting structured settlement beneficiaries. This author agrees that the association plays a vital role in this regard.
The NSSTA blog page states that NSSTA "has published a free hand-out, which you can access by clicking this link." The link brings you to an NSSTA document which includes a statement about guaranty funds and structured settlement payments. If a member of the public goes there seems fine. If the agent or broker member downloads for their own personal use, fine. But if the broker downloads the brochure and hands it to a client and/or directs them to that part of the NSSTA website, there may be a problem.
On December 14, 2010 NSSTA notified its members through Facebook that the "New York Insurance Department Offers Guidelines on Mentioning Guaranty Funds". Click on the link leads to the NSSTA website blog and the downloadable brochure
Ironicaly the opinion dealt with the propriety of guaranty funds in social media and was very clear that "mentioning" the guaranty fund is taboo.
I have obtained several opinion letters from the New York State Insurance Department over the years in an effort to help establish best practices. Among them, the November 22, 2010 opinion of which NSSTA has provided a short excerpt and a January 21, 2009 opinion ,which addressed a financial security brochure published by NSSTA in response to the 2008-2009 financial crisis that included similar references to the guaranty funds as the instant downloadable brochure/leaflet. The New York Insurance Department cited to that opinion in its November 22nd opinion.
I strongly suggest that NSSTA members read the entire opinion.
CLOSING WORDS OF CAUTION: The New York State Insurance Department stated the following in a September 24, 2007 opinion also obtained by this author.
" Nor may an agent or broker evade the prohibition set forth in the Insurance Law by enlisting the aid of the not-for-profit organization to do what the agent or broker cannot do lawfully"
If there's still any doubt of how a reasonable impartial person could interpret this look no further than Allison Bell of National Underwriter who pulls out her best Archie Bunker with Shush! Stifle Your Post About the Guaranty Funds