Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

JG Wentworth is Subject of Money Maker Mag's AI Driven Explosive Word Fart Salad

by Structured Settlement Watchdog

This is a Meme. Not a JG Wentworth ad

Metaphorically speaking, Money Maker Magazine's work about JG Wentworth is about as over the top as the opening scene of the movie Babylon where some chaps are attempting the task of moving an elephant up a hill on a rickety 1920s era truck with "explosive" results. See Babylon’s wild elephant poop scene took an ungodly amount of work - Polygon.

Here the subject is J.G. Wentworth,  the structured settlement secondary market segment's figurative 800 lb Gorilla, instead of an elephant, that falls well short of reality. It's a puffery dispensary on this showing.

A. "The Journey of JG Wentworth: Pioneering Structured Settlement Solutions"

CLAIM

"For decades, they’ve carved out a name as a steadfast ally for folks navigating the complexities of financial windfalls. Here’s the scoop on how they became the go-to experts

• JG Wentworth started off with a bang, cutting through the financial jargon to offer clear-cut solutions.
• They’ve been riding the wave of success, constantly evolving their services to meet the changing needs of their clients in structured settlements.

FLAWS:

1. Argle-Bargle. JG Wentworth does not provide financial advice by its own admission. See below. That has not stopped JG Wentworth from being promoted as "Structured Settlement Brokers" using Google Adwords.
2. Cash, cash and more cash, varying in the degree of "pennies on the dollar", are three solutions that do not require a sophisticated GPS.
3. To the extent that JG Wentworth has the lowest cost of money at a particular point in time, if a customer shops around and comes back to JG Wentworth they will usually get a more competitive deal than its first quote.
4. I suppose two bankruptcies while surfing the "wave of success" is really "shooting the curl" puff daddy.

B. "JG Wentworth’s Approach to Structured Settlements"

• JG Wentworth steps up to the plate, offering up their signature blend of customer care and savvy financial advice.

FLAWS: 

1. Are we speaking about a baseball game, a salad dressing, coffee beans, a Bordeaux blend (I was just there in August), or perhaps a Chianti or Amarone? Maybe just a spirulina smoothie.
2. JG Wentworth does not provide legal, financial or tax advice by its own admission. See for yourself!

Retrieved for critical commentary 11-25-2023. No Copyright claimed.

C. "How JG Wentworth Has Shaped the Structured Settlement Industry"

"Before JG Wentworth stepped into the spotlight, the structured settlement industry was like a wild frontier. Now, let’s journey through their industry-changing influence:

• It’s like comparing apples and oranges when you look at industry standards pre and post-JG Wentworth’s era.
• Crack open the case studies, and you’ll find the undeniable mark they’ve left behind".

FLAWS: 

1. Given that they’ve "been around since the peachy days of 1991", JG Wentworth could not have played  a role (and did not play a role)  in Private Letter Rulings, the Periodic Payment Settlement Act of 1982, the establishment of IRC 104(a)(1), IRC 104(a)(2), IRC 130. 
2. The insinuation that J.G. Wentworth has anything to do with the primary structured settlement market, its origins or market place standards, is just an elephant sized serving of poo poo stew.
3. Ironically Peachtree Settlement Funding, has been a member of the JG Wenwtorth family since July 12, 2011. But Peachtree was not established until 1996. An example of industry standards in the JG Wenwtorth era Illinois Supreme Court Tosses Brenston "Turkey" at Peachtree - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)
4. Arguably the efforts of JG Wentworth and similar companies included directly or through proxies, attempts to adopt and usurp primary market terms and served at times to confuse consumers and judges. 
5. There is little regulation of the structured settlement secondary market, especially its participants. Only few states require registration of transferees and then in response to some national or regional news story in the mainstream press  [ see, for example, Minnesota, South Carolina, Louisiana, Maryland, Florida, Virginia]

D. JG Wentworth and Strategic Financial Planning

"Let’s not beat around the bush; integrating structured settlements into your financial plan is a brilliant move.

• JG Wentworth’s foresight has helped many turn structured settlements into a cornerstone of their financial future.
• Testimonials overflow with praise, hailing JG Wentworth’s masterstroke advice and services. Like a Dior Lip oil at a TS concert".

FLAWS: 

1. How about not bullcrapping consumers? J.G.Wentworth is not a licensed financial advisor or insurance agent by its own admission and cannot offer financial advice  [ AI driven BS impeached by irrefutable statement on the JG Wentworth website as you can see above discovered by Google search]
2. JG Wentworth does not place structured settlement annuities
3. Great analogy. Dior Lip oil and the dubious JG Wentworth promotion on display.  Both are used to plump it up.

E. Breaking Down JG Wentworth’s Structured Settlement Process

"Wading through the process of obtaining a structured settlement can feel like navigating a labyrinth. But fear not, here’s the lowdown with JG Wentworth:

• Step one, two, and beyond – JG Wentworth’s process unraveled.
• A picture says a thousand words, and the visual aids here speak volumes".

FLAW: 

1. J.G. Wentworth by its own admission, is not licensed and does not provide financial advice.  J.G. Wentworth has no role in "obtaining a structured settlement". 
2. Couldnt agree more on a picture saying a thousand words, as you can see the above excerpt of a clear legal disclosure from J.G. Wentworth's website which renders the Money Maker Magazine puff piece useless in less than a few words. Why waste resources when you can do it with a lower carbon footprint eh?

F. Analyzing JG Wentworth’s Structured Settlement Success Stories

"Nothing speaks louder than success, and JG Wentworth‘s track record is chock-full of them: 

• It’s like thumbing through a rapper Drake photo album, they say, each customer profile tells a story of financial transformation.
• Satisfaction and financial health metrics post-JG Wentworth’s touch are off the charts".

FLAW: Success means two bankruptcies, the first in May 2009. On November 8, 2017, J.G. Wentworth filed for Chapter 11 bankruptcy for the second time in nine years. JGWE stock plummeted as much as eighty-seven percent on November 10, 1987. But the 800 lb gorilla is resilient.

What is JGW Connects?  (NEW DEVELOPMENT)

JG Wentworth is now using its well recognized brand to advertise other products and services through JGW Connects.

However, according to the JG Wentworth website, JGW Connects does not provide ANY of the products or services advertised and does not make any decisions regarding your eligibility for those products or services. All decisions regarding approval or denial of a particular product or service are the responsibility of the participating company and will vary based upon your particular financial situation, and criteria determined by the company to whom you are matched. Not all consumers will qualify for the advertised rates and terms.

Any information provided on this site is for educational purposes only. JGW Connects, LLC is not an agent of you or any third party advertiser on this website. You should rely on your own judgement in deciding which available product, terms and provider that best suits your personal financial requirements. We (JGW)  do not offer financial advice, advisory or brokerage services. We recommend that you consult with your own independent advisors regarding these products and services.

Last updated November 26, 2023

Paul Tudor Jones "Plenty of Room to Raise Taxes, Change Social Security, Cut Health Insurance"

by John Darer CLU ChFC MSSC CeFT RSP CLTC

All the More Reason to Structure Your Settlement or Structure Your Attorney Fees!

Paul Tudor Jones II, the billionaire hedge fund manager is quoted as saying

'There's plenty of room to raise taxes': This billionaire says the US will need to change Social Security, cut federal health insurance to deal with a worsening debt crisis — are you ready? (msn.com)

Higher taxes make structured settlement tax advantages inherently more valuable 

If you lock in a 5% income tax-free rate (IRR) now, what is that worth if tax rates go up? Check out this free resource from 4structures.com LLC in Stamford CT.

Tax Advantages of Structured Settlements | Taxable Equivalent Yield Chart (4structures.com)

• 5% in a 28% bracket is the equivalent to  6.94% taxable
• 5% in a 33% bracket is the equivalent to  7.46% taxable
• 5% in a 35% bracket is the equivalent to  7.69% taxable
• 5% in a 40% bracket is the equivalent to  8.47% taxable

Structured Settlements | What Is a Structured Settlement? (4structures.com)

New York Structured Settlements Experts | Settlement Consulting (4structures.com)

London Market Structured Settlement Experts (4structures.com)

Structured Attorney Fees and Attorney Fee Deferral Experts | 4structures.com LLC

Plantiff Encounters of the Irreverent Mind

by John Darer CLU ChFC MSSC CeFT RSP CLTC 

Plantiff Encounters of the Irreverent Mind

John Darer reviews the latest collection of plantiff encounters. 

I admit it's a bit "hedgy"

"Plantiff Hollywood"

In the IMDB write up on The Trial a 2023 comedy short about a Courtship goes to court. As a trial relationship ends, two lovers go to court to determine - was their romance was sabotaged, or doomed from the start?  Actress Hollis Welsh is listed as the "Plantiff Attorney".  The Trial (Short 2023) - IMDb. (11/22/2023)

" Lead Plantiff Deadline"

The Class Action law firm  of Bragar Eagel & Squire, P.C lists a baker's dozen of new securities cases where there is a deadline for "lead plantiffs". One would hate to make a false equivalency of course, but a lead "plaintiff"is the individual whose name goes on the lawsuit and who represents the entire group of people who were allegedly harmed by the defendant’s (or defendants’) wrongdoing  Source: classaction.org.  Extending the rights of plants here as part of a "Green New Deal" is an innovative approach that may propel the law firm to  "Topiary of its Class".

Hofstra Law Alums 2023 Next Gen "Plantiff Securities Litigation" Law Dragons

William J. Geddish (2009)  and Michael G. Capeci were named to the 2023 Lawdragon 500 X – The Next Generation’s inaugural guide in plantiff securities litigation. Source: Hoftstra Law News 11/22/2023.  The Hempstead New York law school's recognition of these honored chaps is the inspiration for the above meme.

Does Beaver County, Pennsylvania Really Have Custody Hearings for Saplings?

Form found on the Beaver County website, to be submitted to prothonotary. lists plaintiffs who are "represented" by "Plantiff" lawyer. Things really need to be spruced up in Beaver. So "a-gnawing"    

The word prothonotary is recorded in English since 1447, as "principal clerk of a court".

Safe to say it's unlikely that anyone will beat Georgia's Henry County Judge Amanda R. Flora, a veritable rockstar Warrior for Wayward Vowels, going back to November 2019, as I demonstrated in September.  Henry County Georgia's "Plantiff Docket" Record 10 pages of Plantiff Cases September 19th! - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

 

 

 

 

 

 

 

J.G. Wentworth Massive Costume Blooper Muddles Vikings with Order of the Water Buffalo

by Structured Settlement Watchdog

Did JG Wentworth's ad team run out of Viking hats and resort to the noggin' toppers of the Modern Stone Age "Order of the Water Buffalo"?  When reached for comment, Fred and Barney exclaimed in unison "How Hanna and Barberassing!"

NOW, watch carefully for the JG Wentworth chorus          (see right below)

,

Source: JG Wentworth YouTube Channel

But the JG Wentworth Blooper Doesn't End There

The popular image of the Vikings is one of fearsome warriors wearing horned helmets. Many depictions of the Vikings display this particular attribute. However, there is only one preserved helmet from the Viking Age and this does not have horns. It was found in the Norwegian warrior’s burial at Gjermundbu, north of Oslo, together with the only complete suit of chain mail from the period.  Source: National Museum of Denmark Copenhagen Denmark

Horned helmets would also have caused problems on board the warships, where space was already at a premium. In addition, none of the contemporary sources mention Vikings wearing horned headgear. See  Helmets (natmus.dk)

The "Doepler Effect"

Carl Emil Doepler created horned helmets for the Viking characters in a Wagner opera in 1870, and an enduring stereotype was born.  See Did Vikings really wear horned helmets? | HISTORY,  by Elizabeth Nix, also "Romanticized Viking Revival" Holman, Katherine (2003). Historical Dictionary of the Vikings. Oxford, UK: The Scarecrow Press. ISBN 0-8108-4859-7.

Romanticized means "deal with or describe in an idealized or unrealistic fashion; make (something) seem better or more appealing than it really is.   Source: Oxford Languages

While JG Wentworth's Viking Opera ads are undoubtably memorable. They are memorably inauthentic.

 

 

 

 

 

Does the Structured Settlement Annuity Contract Transfer When You Deal With JG Wentworth or Lump Sum Funders?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Can you Sell a Structured Settlement Annuity Contract? 

Nope. However, a highly credentialed but mistaken settlement planner says you can, in a discussion of "the process of selling a structured settlement" found on their website at time of publication.

"Transferring the annuity contract: Once the court approves the sale, the annuity contract is transferred to the funding company, and the claimant receives their lump-sum payment" they say.

What is the Annuity Contract in a Structured Settlement?

The annuity contract in a structured settlement is a qualified funding asset as defined in the Internal Revenue Code Section 130(d).

Who Owns the Annuity Contract in a Structured Settlement?

The annuity contract in a structured settlement is typically owned as a qualified funding asset by a qualified assignment company. In certain cases, such as with claims settled under the Federal Tort Claims Act (FTCA), the structured settlement annuity is owned by the Defendant

What is a Qualified Assignment Company?

A qualified assignment company is a special purpose company that serves as the fulcrum of a structured settlement transaction. Please refer to the Step 2 and Step 3 in the structured settlement flow chart below. 

Structured settlement documentation makes clear that the payee has no rights of ownership in the qualified funding asset. 

But companies like JG Wentworth must be buying something if all these people have been scoring all that "cash now". What the heck are they buying?  The magic words are "structured settlement payment rights" or " structured settlement receivables". What do factoring companies sell to investors?

Think "Receivables Purchase Agreement" not " Buying an Annuity".

So if you're raising cash from your structured settlement you are selling receivables or structured settlement payment rights.

Fellow settlement planners and structured settlement consultants,  please be mindful of inaccuracies.

 

 

 

 

 

 

 

 

Brook Chase (1966-2023) 1988 NCAA Lacrosse National Champ and Structured Settlement Advisor

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Brook Chase, a Syracuse University Lacrosse national champion and a structured settlement advisor in Syracuse and Tallahassee, friend and well-liked industry colleague has died at his home in  Jacksonville Florida. He was 57 and a proud father of 4.

Brook Chase was a national championship winner with Syracuse in 1988

In his sophomore year at Syracuse, my alma mater, Brook scored 2 goals in the Orange victory over Cornell to win the 1988 NCAA National Championship game. SYRACUSE WINS LACROSSE CHAMPIONSHIP, 13-8 - The Washington Post

In the past 20 years, Brook was a settlement advisor with a number of firms, Brant Hickey & Associates, SFA, and the last decade with Ringler Associates. He was a Certified Structured Settlement Consultant and a member of the National Structured Settlements Trade Association.

We took the Certified Medicare Secondary Payer course together, in New Orleans in 2011, and over the years found ourselves on the opposite sides of cases, always an enjoyable experience. Brook often sounded me out for advice and for more than 2 decades, I could count on a call from Brook on a Saturday or Sunday to discuss what was happening in the Premier League as well as a midweek text if something good was going on the UEFA Champions League. 

Godspeed my friend!

Update

A Celebration of the Life of Brook Chase will be held at a future date.

Stephen E. Chase, Jr. Obituary 2023 - Quinn-Shalz Family Funeral Home & Cremation Centre

Last updated November 15, 2023

Plummer's Annuity Expert Advice Fails Structured Settlement Fundamentals

by Structured Settlement Watchdog

Ownership of Structured Settlement Annuity Policy Fail by Plummer

Shawn Plummer claims that "the defendant or insurance company typically owns the annuity policy in a structured settlement.The annuity policy ensures the company remains solvent and can fulfill its obligation to the claimant".

Crap research will not be tolerated

Plummer's explanation fails for the following reasons:

1. It is atypical for a defendant or its insurer to own a structured settlement annuity. A representative of one of the major life insurance companies that has been issuing structured settlement annuities for many years, tells me that less than 5% of transactions are so-called "buy and holds". 

One example of where a defendant might own an annuity is where the United States buys and owns structured settlement annuities for claims brought under the Federal Tort Claims Act (FTCA).

2. The annuity policy DOES NOT ensure that the defendant or insurance company remains solvent. If the Defendant were to own the annuity policy and the Defendant were to go bankrupt, the annuitant would be a general creditor of the Defendant. 

3. Insurers are highly regulated in each state they are admitted and must maintain reserves. Such reserves are subject to regular statutory filings. But the annuity policy itself does not ensure solvency.  Hard to believe that a licensed insurance agent like Plummer would actually publish that.

Why Must Structured Settlements be Court-Approved Fail by Plummer

Shawn Plummer asserts that "The Federal Periodic Payment Settlement Act of 1982 made it mandatory for court approval on all sales of structured settlements to ensure the consumer’s best interest is put first and limit any party from taking advantage of the settlement recipient"

Plummer's assertion is a fail because the plain reading of the Periodic Payment Settlement Act of 1982 says nothing of the sort.  See  Periodic Payment Settlement Act of 1982 | Birth of Qualified Assignments and Codified IRS Rulings - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

On the other hand, per 26 U.S.C. § 5891 - U.S. Code Title 26. Internal Revenue Code § 5891m, a qualified order IS required, in order for a purchaser of structured settlement payment rights to avoid a 40% excise tax on the factoring discount. 

IRC section 5891(a) imposes a tax equal to 40% of the factoring discount on any person "who acquires directly or indirectly structured settlement payment rights in a structured settlement factoring transaction that does not qualify for exemption under conditions that are specified in section 5891(b)  Source: IRS.gov

Plummer is clearly uninformed about structured settlements and Plummer is not a credible source for information about structured settlements

I've previously reviewed Shawn Plummer's efforts over nearly 2 years that support my opinion that Plummer is clearly uninformed about structured settlements and that Plummer is not a credible source for information about structured settlements.

It's a shame really, because all the correct and accurate information is out there. My interest in the capacity of Structured Settlement Watchdog is to give consumers a clear pathway to accurate information about structured settlements. 

John Darer Reviews "Annuity Expert Advice" Website's Multiple Structured Settlement Inaccuracies - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)  February 2023

AnnuityExpertAdvice.Com on Secondary Market Annuity is Just "Plummer's Crack" - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com) February 2022

 

 

Can Structured Attorney Fees Be Paid to a Law Firm?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Structured attorney fees and other attorney fee deferral options are available to contingency fee lawyers and a valuable financial planning option for contingency fee lawyers.

It's just batty how good structured settlement rates are right now

Structured attorney fees can be arranged to pay to individual lawyers, to lawyers in a solo practice, to partners in a law firm, or the law firm entity.

Lots of options are available for attorneys who plan ahead. If you've never structured attorneye fees before there is some foundational work that needs to be done. Don't wait until December 30th!

Broadly speaking attorneys have:

• Fixed options
• Index Linked options
• Market Based options

For more details

1. Click the following link and/or watch the video below in which John Darer Reviews structured attorney fees and attorney fee deferrals;
2. Watch the video in which John Darer reviews and explains the spectrum of attornye fee deferral options
3. Call John Darer at 888-325-8640 to disccuss your options.

Structured Attorney Fees and Attorney Fee Deferral Experts | 4structures.com LLC

 

John Darer CLU ChFC MSSC CeFT RSP CLTC has over 40 years experience in financial services and 30 in the structured settlement and settlement planning space.

AM Best Client Recommended Structured Settlement Expert 2023 (11th consecutive year*) Better Business Bureau Accredited Business A+ Rating 19+ Years*

*Achieved for each consecutive year from start for each of these. 

John Darer holds insurance licenses in these states AK, AL, AZ, CA (0761076), CO, CT, DE, FL, GA, HI, IL, IN, KY, KS, LA, MA, ME, MI, MN, MO, MS, MT,  NC, NH, NM, NJ, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV and Washington DC, at time of posting.

Do All Annuity Issuers Pay Structured Settlement Consultants the Same?

by Structured Settlement Watchdog

How Does Structured Settlement Broker Get Paid? Who Pays It? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

At time of posting we note that one of the companies in the industry, responding to about how its consultants get paid, states on its website that its consultants

"don’t take any money from the injured party, their attorney, or the insurance carrier. Consultants get a commission from the annuity issuer, and they all pay us the same! So, there’s no benefit to promoting one company over another. Our job is to make sure we find the best fit for the client – we’re getting paid the same amount either way..." they say.

Food for Thought...  

A. Not all structured settlement annuity issuers pay the same, but most do

See my November 6, 2021 blog about Independent Life's unique in the industry Duration Based Structured Settlement Compensation Model (4structures.com)

It's possible that the broker in question is not appointed with Independent Life. If so, that's certainly OK. It's their choice. 

B. The statement does not delineate whether it refers solely to structured settlement annuities.

Following are examples of periodic payment solutions that have different compensation options and/or fees than annuities. 

• Funding Agreement Structured Settlement for Taxable Damages (4structures.com)
• Treasury Funded Structured Settlements | 4structures®
• Assura Trust | Market Based Structured Settlement Option | (4structures.com)
• Settlements Plus/Fee Structure Plus (Structured Assignments)
• Havelet Assignment Company (4structures.com)

Some include variable compensation options.

 

 

What Does KYC Have to Do With Structured Settlement Receivables and Reassignments?

by Structured Settlement Watchdog

What is Know Your Customer?

Know Your Customer (KYC) is a set of guidelines and regulations in the financial services industry that  require professionals to verify the identity, suitability, and risks involved wit h maintaining a business relationship with a customer. KYC processes are employed by companies of all sizes to ensure their proposed customers, agents, consultants, or distributors are anti-bribery compliant and are actually who they claim to be.

KYC origin can be traced back to the 2001 Title III of the Patriot Act in the United States

The act provided various tools to prevent terrorist activities and required financial institutions to implement a mandatory framework for customer identification.

KYC procedures fit within the broader scope of anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Banks, insurers, export creditors, and other financial institutions are increasingly required to make sure that customers provide detailed due diligence information.

KYC processes are also employed by companies of all sizes for the purpose of ensuring their proposed customers, agents, consultants, or distributors are anti-bribery compliant and are actually who they claim to be

Source: CDD Final Rule | FinCEN.gov

The Know Your Client Process Recently Came Up in a Texas Dispute about Reassignment of Factored Structured Settlement Receivables

"Each Genex RPA contains anti-assignment language barring Genex Investors from reassigning receivable payments allocated to them through the Genex servicing process absent notice to Genex and Genex’s express consent. This restriction is designed to protect both Genex as well as Genex’s Investors. It protects Genex by preserving Genex’s ability to complete government required “know your client” processes. It also ensures certainty of payee to minimize the risk that the wrong person gets paid by Genex and/or the insurance issuer/owner. This is particularly important given that Genex has ongoing indemnity obligations owed to issuers and owners such as Prudential. Importantly, the restriction also protects Genex Investors so they do not fall prey to unscrupulous opportunists who may solicit them to sell for less than fair market value, a situation that occurs only too frequently in the structured settlement secondary marketplace".

[see In Re: Juan Oltivero Cause No. B9545-1211 In the District Court of Castro County, Texas, 242nd Judicial District Genex Capital Corporation First Amended Cross Claim and Second Supplemental Petition Against Third Party Defendants Stratcap Investments, Inc., David Meyerowitz and Douglas M. Evans and Intervenor New England Annuity Associates, LLC  filed October 4, 2023]

The Oltiveros case points raised concerning KYC are similar to those raised in Genex CEO Roger Proctor's January 3, 2022 Declaration in a pending Arizona case

To wit, following is an excerpt of my March 2, 2022 update:

"Point #3

As a critical part of its business, Proctor states that

"Genex must review the background and suitability of all prospective investors to ensure compliance with a plethora of laws and regulations, including anti-money laundering laws, financial-disclosure requirements, and other rules that prevent unlawful financial transactions

Genex also must determine investor suitability in accordance with its “know your client” protocols, consistent with, among other rules, Financial Industry Regulatory Authority Rule 2090 and Rule 2011"

FINRA Rule 2090 mandates that member firms must “use reasonable diligence, in regard to the opening and maintenance of every account, to know (and retain) the essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer.”

FINRA Rule 2111 requires that a broker have a "reasonable basis" to believe that a recommended transaction or investment strategy is "suitable for the customer" based on facts obtained through "reasonable diligence." This rule is aimed at remedying past abuses and "yield-chasing" behavior in brokers at a client's expense

Then there is FINRA 2210 which covers advertising. 

Who is Covered by FINRA Rules?

Because FINRA oversees workers within the financial industry, its rules primarily apply to brokers and financial advisors. Anyone who buys or sells stocks or securities on behalf of clients is required to get certification, register their name and address, and follow other requirements. To follow these requirements, these professionals must go through FINRA, which means putting nearly every stockbroker or financial advisor under FINRA’s authority.

Specifically, FINRA’s regulations govern “broker-dealers.” This is a broad term used to encompass both agents of financial transactions as well as those who trade for themselves or their firm. For instance, if your stockbroker buys stocks for you, they would be acting as a broker, but if they perform transactions for their brokerage firm’s own accounts, they function as a dealer instead. Regardless, FINRA covers both of these types of professionals, creating rules and regulations to govern their actions.

Under the terms of the agreement between Genex and Seeley and Bulbrook, which Genex acknowledges was consummated on an oral agreement and handshake and not a written contract, in every instance where a new investor sought to purchase a Genex Receivable, Seeley and Bulbrook were responsible for completing the “know your client” protocols approved by Genex, facilitating the completion of an investor suitability form, providing a copy of the Bulbrook Buyer’s Guide approved by Genex, and obtaining required signatures on the RPA, all of which documents were either drafted by Genex or approved by Genex. From time to time, Genex sought proof that these requirements were being satisfied and at no time during the relationship didGenex have concerns about same.

While I was unable to locate the name of Genex Capital Corporation, Genex Strategies or Roger Proctor on FINRA Broker Check or the IAPD database, it is good to see that the Genex Capital CEO aspires to FINRA standards.  Did/Does Genex consider the products it offers/distributes to be securities? It sure would be great to see them regulated.

POINT #4

Proctor states that "Genex owes obligations to the Annuity Issuers, and to Annuity Owners/Obligors throughout the term of each Receivable transaction as specified in each court order. In light of these obligations, it is a critical to Genex that it understand the transaction history for all Receivables, ensure that its records are complete and accurate, control downstream further assignments, and know at all times the identity of the legitimate end Payee".  [ Decl. of Roger Proctor January 3, 2022, at 24] He states that "Uncontrolled, unapproved, or secret transactions bypassing Genex’s oversight puts Genex at risk of possibly directing payment to the wrong person, double payments, fraud and confusion".  [Decl of Roger Proctor 1/3/2022 at 25]

IN THE SUPERIOR COURT OF THE STATE OF ARIZONA
IN AND FOR THE COUNTY OF MARICOPA
GENEX CAPITAL CORPORATION, a Delaware corporation; Plaintiff,
vs.
SEELEY CAPITAL MANAGEMENT, INC., a Massachusetts corporation; et al.,Defendants.
Case Nos: CV2020-004958 CV2020-013796 (Consolidated)
DECLARATION OF ROGER PROCTOR IN SUPPORT OF GENEX’S RESPONSE TO SEELEY DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT
AND RELATED COUNTERCLAIM. RICHARD L. KEEFER and VICKI L. KEEFER, husband and wife; et al., Plaintiffs,
vs.
GENEX CAPITAL CORPORATION, a Delaware corporation; et al., Defendants".

 

 

 

 

 

"When Big Risk Big Rewards No Longer Make Sense" But Annuity.Org Promotes B++ MYGA

by John Darer CLU ChFC MSSC CeFT RSP CLTC

When Big Risk Big Rewards No Longer Makes Sense But Neither Does Annuity.org's Advertising

Annuity.org's is feeding its Ying by heavily promoting annuities, using the tag line "When Big Risk Big Rewards No Longer Make Sense" at the same time it is feeding its Yang by (1) soliciting structured settlement annuitants to part with their structured settlement payments for what amounts to pennies on the dollar and (2) lists its top MYGA offering as a 10 Year fixed rate of 6% from a B++ rated company.

What is a MYGA?

A multi-year guaranteed annuity, or MYGA, offers a predetermined and contractually guaranteed interest rate for a fixed period of time.

According to A.M. Best a B++ rating represents companies  that "are stable but have room for improvement. The long-term outlook may be unsure". Synonyms for unsure include lacking confidence, equivocating,..just the type of words that might cause an annuity prospect to question. See 35 Synonyms & Antonyms of UNSURE | Merriam-Webster Thesaurus

Is "may be unsure" a risk? What Do Professonal E&O Carriers Think?

"Virtually all E&O carriers place some type of insurer exclusion on their policies, either in the exclusions section of the basic form or by endorsement. E&O carriers have come to the conclusion that an agent's selection of insurers to represent and place business with is wholly within the agent's control. If the agent places business with a company that has a poor financial rating or no rating at all, E&O carriers believe it is a risk that the agent has assumed. However, the exclusions vary significantly from one insurer to another. Some policies exclude any E&O claim arising out of placement with a low-rated or unrated insurer, even if the insurer is solvent. You need to take a look at your own policy, or any prospective policy, to determine the exact scope of the insurer exclusion.

Ask the following questions. (1) What is the Best rating threshold for application of the exclusion? Some exclusions apply if the insurer is rated less than "B" while others apply a threshold as high as "A-." (2) Does the exclusion apply to claims arising out of placement with such a carrier (a) whether it is insolvent or not (worst) or, (b) when it becomes insolvent, even if the claim against the agency does not arise out of the insolvency (bad), or (c) the insurer's inability to pay a claim due to insolvency (better)? (3) Does the exclusion apply even if the insurer had a favorable rating at the time of placement but later became insolvent (bad), or only if the insurer's rating didn't meet the threshold at the time the policy was placed (better)? (4) Are there any other exceptions to the exclusion? In addition to a Best-rating threshold, many E&O policies include an exception for insurers protected by a state guaranty fund".  See Ten Things You Don't Want to See in Your E&O Policy | IIAT #3

 

 

Do Structured Settlement Payments Need to Be Equal Payments?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Do Structured Settlement Payments Need to Be Equal Payments?

1. Qualified Structured Settlement Payments

• Generally qualified structured settlement payments can be equal or unequal
• There are many different types of structured settlement payments to choose from.  See Types of Structured Settlement Payments | Your Structured Settlement Payment Options (4structures.com)
• You can combine different types of cash flows to suit your needs, in a single contract if you wish.

2. Non Qualified Structured Settlement Payments

• IRC Section 72(u)(1)  "The Non Natural Person Rule"
• The so called "Non Natural Person Rule" provides that "if an annuity contract is held by a person who is not a natural person, then such contract shall not be treated as an annuity contract for purposes of subtitle A (other than subchapter L) and the income on the contract for any taxable year of the policyholder shall be treated as ordinary income received or accrued by the owner during such taxable year
• As an exception to the " non-natural person rule, payments must be substantially equal within the meaning of IRC 72(u)(4).

IRC 72(u)(4) Definition of Immediate Annuity

For purposes of this subsection, the term “immediate annuity” means an annuity—

• 72(u)(4)(A) 

  Which is purchased with a single premium or annuity consideration,

• 72(u)(4)(B) 

  The annuity starting date (as defined in subsection (c)(4)) of which commences no later than 1 year from the date of the purchase of the annuity, and

• 72(u)(4)(C) 

  Which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period.

 

In the structured settlement space, this applies where a domestic (US) non qualified assignment is funded with an annuity, where the annuity is owned by a non-natural person.  

Examples

AGL Assignments, LLC is the non qualified assignment company for Corebridge subsidiaries  American General Life Insurance Company and United States Life Insurance Company in the City of New York  (NY cases) and is registered in Delaware.

MetLife Assignment Company, Inc. is an assignment company, registered in Delaware, that handles both qualified and non qualified assignments where Metropolitan Tower Life annuity is the issuer of an annuity owned by MetLife Assignment Company, Inc.

Are There Any Workarounds to IRC 72(u)?

Non Qualified Assignments Where Funding Asset is Not an Annuity

AGL Assignments, LLC is the non qualified assignment company for Corebridge subsidiaries American General Life Insurance Company and United States Life Insurance Company in the City of New York  (NY cases). A non qualified structured settlement solution is available in all states except Pennsylvania, using a Funding Agreement instead of an annuity. The Funding Agreement is not an annuity.

Reinsurance Structured Settlements

Periodic Payment Reinsurance | Reinsurance Structured Settlements 2023 (4structures.com)

Use of Non-Domestic Assignment Companies

• Structured Assignments, SCC Barbados
• Havelet Assignment Company -Barbados
• Dominion Assignment (Switzerland) for Independent Life's iStructure Dominion Assignment Company - Independent Life
• Kenmare Assignments  (Ireland)

Last updated November 13, 2023

 

 

 

Citing Not a Single Structured Settlement Expert, BIng AI Is Way Off The Mark

by John Darer CLU ChFC MSSC CeFT RSP CLTC

The utility of AI as a credible structured settlement information resource for consumers has again come into question as a search for the advantages and disadvantages of structured settlements produced glaring inaccuracies and sourced information from non-experts and a secondary market source known for its shoddy research, as I've highlighted for years.

A Gentle Rebuttal

Stuart Gentle is a publisher at Onrec in the UK. Citing not a single structured settlement expert, Gentle has produced an absolute howler that purports to be about structured settlements and appears to be a backlink SEO effort for Cesar Ornelas law of El Paso Texas and Annuity.org.  In the game of "information football", a stadium full of English football fans would rightly chant "you don't know what you're doing"

Stuart Gentle's Howlers on Disadvantages of Structured Settlements

1. "Structured settlements have several potential drawbacks. For one thing, the payments may be less than what the injured person could have received if they had accepted a lump sum payout"

Comment

a. Stuart Gentle makes the howler without any reference or support, failing to account for the tax advantages of structured settlements over a lump sum payout. Structured settlement provide a level of certainty that a lump sum doesn't. The thing that Americans worry about the most is money, or has to do with money.

2. "Another downside is that the payments may be taxable"

Comments:   

a. The majority of structured settlements involve damages that are not taxable, excluded under IRC 104(a)(1) workers comp and IRC 104(a)(2), for personal physical injury, physical sickness and wrongful death. 

Structured Settlements | What Is a Structured Settlement? (4structures.com)

Tax Advantages of Structured Settlements | Taxable Equivalent Yield Chart (4structures.com)

b. Structured settlements can be used to pay for taxable damages or non-taxed damages that don't qualify under IRC 104(a)(1) or IRC 104(a)(2). See

What are Non Qualified Structured Settlements and Non Qualified Assignments for Tax Deferral (4structures.com)

c. If damages are taxable Stuart Gentle's lump sum v structured reasoning is nonsense. If the damages are taxable, a lump sum means that there will be less to invest because the lump sum will be also be taxable. And if you're not going

Considering that one of the Onrec link beneficary is the Cesar Ornelas personal injury law firm in El Paso Texas, perhaps it deserves its money back, in my opinion.

3. Says Gentle... "Annuities fund structured settlements. An annuity is a contract between an individual and an insurance company. The individual agrees to make payments to the insurance company for a specified period, and in return, the insurance company agrees to make periodic payments to the individual".

If this were an English football match and Stuart Gentle were the referee or coach, tens of thousands of fans would be chanting  in unison "you don't know what you're doing" Stuart Gentle does not know what he's writing about. Stuart Gentle clearly has no grasp of the fundamentals of structured settlements and how they are established.

4. Says Stuart Gentle "There are two main types of structured settlements: present value and future value. Present value settlements are paid out over a shorter period, typically five years or less. On the other hand, future value settlements are paid out over a longer period, often 20 years or more".

Present value and future value are finance terms not types of structured settlements.

See Types of Structured Settlement Payments | Your Structured Settlement Payment Options (4structures.com)

 

Why Does NJ Insurance Agency Claim Secondary Market Annuities Involve POLICY transfers?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Licensed Life Insurance Agent Hersch Stern is a very bright guy, long time licensed insurance agent and a general agent for many life insurance companies in Englishtown New Jersey. 

Stern's company website at ImmediateAnnuities(dot)com makes an inaccurate claim about structured settlement transfers

"Secondary Market Annuities (SMAs) are policies being transferred by an annuitant pursuant to state transfer laws. Annuities listed are subject to prior purchase, prior sale, or withdrawal by seller. Interest, payments, and prices are calculated using industry standards".  ImmediateAnnuities(dot)com

Where Immediate Annuities.com is not accurate about Structured Settlement Receivables

• Referring to assigned structured settlement payment rights as an annuity or annuities is inaccurate.
• A structured settlement factoring transaction does not involve any transfer of annuity policies.
• A structured settlement transfer does not involve the transfer of annuity policies
• The "annuities listed" as secondary market annuities are not annuities. They are receivables.
• NJ is one of the 40 states that have adopted the 2017 Revisions to the Life & Health Guaranty Associations Model Act (#520). There is an express exclusion for anyone "who acquires rights to receive payments through a structured settlement factoring transaction as defined in section 5891 of the federal Internal Revenue Code, 26 U.S.C.s.5891(c)(3)(A), regardless of whether the transaction occurred before or after that section became effective". 

Why?

Investors are buying receivables not annuity policies!   In a structured settlement transfer the policy doesn't transfer

New Jersey "Structured Settlement Protection Act." N.J.S. § 2A:16-63

N.J.S. § 2A:16-64 Definitions

"Transfer" means any sale, assignment, pledge, hypothecation or other alienation or encumbrance of structured settlement payment rights made by a payee for consideration; except that the term "transfer" does not include the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution, in the absence of any action to redirect the structured settlement payments to the insured depository institution, or an agent or successor in interest thereof, or otherwise to enforce the blanket security interest against the structured settlement payment rights.

"Transfer agreement" means the agreement providing for a transfer of structured settlement payment rights.

"Transferee" means a party acquiring or proposing to acquire structured settlement payment rights through a transfer.

Res Ipsa Loquitur.

 

 

NC District Court Dismisses Structured Settlement Felon's Bivens Claim

Gargan Civil Rights Case Dismissed

Joey Gargan, the former CEO of The Pension Company, Inc., convicted felon and former federal inmate has lost his complaint asserting claims for violations of his civil rights pursuant to Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics, 403 U.S. 388 (1971). Gargan's claims were DISMISSED pursuant to 28 U.S.C.§ 1915(e)(2)(B)(ii)-(iii). The clerk wass DIRECTED to close the case, SO ORDERED, on September 25, 2023.

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION
NO. 5:22-CT-3354-FL JOSEPH E. GARGAN,Plaintiff, v. VICKY MOSER, KIM SWINDELL, DONALD EPPLEY, THOMAS
SCARANTINO, MARTIN TINDEL, and RON ALLISON, Defendants  Lois V. Flanagan  was the District Judge.

Download Gargan v. Moser 5-22CT03354_DocketEntry_09-25-2023_8

Who is Joey Gargan?

Gargan was a former CEO of The Pension Company, Inc. who had the temerity to pilfer settlement money from taxpayer dollars to cover his own shortfalls. He even embezzled settlement money from a New York City area hospital intended for a stuctured settlement for a severely injured minor. He also shortchange structured settlement brokers who were associated with his firm. Despite his crimes, Gargan was vouched for by Kenneth Feinberg and is the son of the late Joseph E. Gargan, "best known being a lawyer and cousin of Senator Ted Kennedy, prominently involved in the infamous Chappaquiddick incident of 1969" Source: Biography.com 

• Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Gargan Embezzlement (typepad.com)
• Loudoun man sentenced to nearly six years for embezzling $8 million in malpractice settlements - The Washington Post
• Joe Gargan Defending Lawsuit Alleging That He Screwed Broker Out of $200,000 Commissions - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)
• Gargan Pays Off Stolen $1M+ from NY Minor's Settlement | Seeks Compassionate Release from Prison - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

Bivens claim was filed after Gargan was granted Compassionate Release from FMC Buttner

Convicted Structured Settlement Felon Joe Gargan Released From Prison - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

 

John Darer Reviews How AI Demonstrates How Bad Information from Annuity.Org Gets Spread

by John Darer CLU ChFC MSSC CeFT RSP CLTC

I asked Microsoft's AI what was the difference between a structured settlement and an annuity and this was the result

Aligned

"A structured settlement is a form of negotiated settlement of claims and lawsuits in which some portion of damages is paid in the form of periodic payments. It is not a financial product, but rather a method of payment¹. On the other hand, an annuity is a financial product that provides a guaranteed stream of income over a specified period or for life^{1 2}.

Trails Diverge

"While structured settlements are often funded by annuities, they are not the same thing. Annuities can be purchased by individuals, while structured settlements are awarded by courts to plaintiffs². Additionally, annuity sales do not require court approval if you purchased or inherited the annuity, whereas structured settlement payments require court approval to sell²."

I hope this helps clarify the difference between the two", said Microsoft AI Bing.

Bing cited sources as follows :   1.  4structures.com, and 2. Annuity.org

Bing AI is unable to discern fact from fiction when it comes to the tractor beam of the " awarded a structured settlement" vortex.

Structured settlements are negotiated and are the result of a compromise.

Awards are not settlements

• A Grammy Award is not a settlement 
• An Academy Award (Oscar) is not a settlement
• If the President pins the Medal of Honor on you it is not a settlement
• If you make Dean's list it's not a settlement

 

Lists of civil awards and decorations of the United States - Wikipedia

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Annuity.org | Sweeping Up Poor Annuity.org Research (typepad.com)

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Awarded a Structured Settlement Vortex (typepad.com)

You Negotiate. If a Compromise is reached, it may include a structured settlement

CA Structured Settlement Broker Ad Leads to Millions of Creators of Intricate Structures

by Structured Settlement Watchdog

California structured settlement broker has done a brilliant job of microsegmentation and expansion of the structured settlement market in what is already a record year for the structured settlement industry. Under the cover of a company marketing video, the subject structured settlement broker targets "surviving spouses and 'dependants' ". At first blush it appears to be just a funny typo, but no... apparently...

"Ants are among the most diverse and successful insects on Earth. Ants live in colonies that can number in the millions and cooperate to create intricate structures".  -Wikipedia

Holy Temecula! I think we're gonna need a bigger boat for the flood of business, mate. 

What the heck is an "ent" anyway?

 

 

 

 

Henry County Georgia's "Plantiff Docket" Record 10 pages of Plantiff Cases September 19th!

by John Darer CLU ChFC MSSC CeFT RSP CLTC

If you are an advocate for the rights of flora and fauna, the odd hedgerow, topiary, or weeping willow, a hosta defrocked by a deer, perhaps the old oak tree shorn of its yellow ribbon and tired of assaults on its trunk by a cavalcade of back scatching bears, woody woodpeckers and leg lifting poodles, here is something that may interest you.

Henry County Georgia's Inclusive "Plaintiff Docket" Dates Back to 2019

"Ate some seeds and then this happened"

Henry County GA appears to have a record that perhaps no other court can touch, as a specialist in hearing Plantiff cases, with its "Plantiff docket" dating back to 2019, according to our assidous research.

As I reported  last month in Plantiff Tracker | Following Warriors of the Wayward Vowel For Over 17 Years - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com), Judge Amanda R. Flora  has 10 pages brought by Plantiffs against Defendants on her calendar for this Tuesday, September 19, 2023

Sampling of Plantiff Docket in Henry County Dating Back to 2019

Download 10_18_2023_Amanda R. Flora_Civil Plantiff Docket Henry County GA

Download 5_3_2023_Amanda R. Flora_Civil Plantiff Docket Henry County GA

Download 9_30_2022_Amanda R. Flora_Civil Plantiff docket Henry County GA

Download 9_23_2022_Amanda R. Flora_Civil Henry County Georgia

Download 12_10_2021_Amanda R. Flora_Civil Plantiff Docket Henry County GA

Download 6_16_2020_Amanda R. Flora_Civil Plantiff Docket Henry County GA

Download 11_19_2019_Amanda R. Flora_Civil Plantiff Docket Henry County GA

So if you are an advocate for the rights of flora and fauna, the odd hedgerow, topiary, or weeping willow

 

 

 

 

 

 

 

Coral Springs Co. Wholly Misleading Statement Re "Purchase of Structured Settlement Annuities"

by Structured Settlement Watchdog

Coral Springs Company Makes False Wholly Misleading Statement Re "Purchase of Structured Settlement Annuities"

According to MJ Structured Settlement Annuities' (MJSSA) definition, "a Structured Settlement Annuity (SSA) is an annuity from an insurance company paid over a period of years as a result of a legal settlement for financial restitution". For example, MJSSA says, "the victim of a motor vehicle accident may be awarded an SSA where the guilty party will fund an annuity to pay out to the victim over time"

MJSSA Fails to Comprehend Basic Difference Between Civil and Criminal Lawsuits

Setting aside MJSSA's showing a lack of understanding of the difference between a civil suit (where at the conclusion of trial a civil Defendant may be found liable (as opposed to a criminal trial where a Deendant could be found guilty)**, MJSSA makes a false and wholly misleading marketing claim by holding out  the purchase of factored structured settlement receivables as a purchase of a structured settlement annuity (or structured settlement annuities).  

"MJSSA offers investors the opportunity to purchase Structured Settlement Annuities that deliver a guaranteed, fixed income stream over a defined period of time. These are individual, one-time-only secondary market annuities available for a limited time". See the screenshot immediately below.

Screenshot for critical commentary, retrieved from MJSSA website 9-14-2023

It is well settled that factored structured settlement payment rights are not annuities 

1. Factoring is a sale of receivables. For example, see  A. DRB Capital -- Structured Settlement Receivables Successfully Acquired | News & Insights | Arnall Golden Gregory LLP (agg.com) "DRB Capital, LLC, is a Florida-based specialty finance company that buys and sells structured settlement receivables, such as annuity payments and court-ordered payments"  and "As a result of the deal, DRB, which has over $1 billion in committed capital and employs more than 150 people, was able to add a substantial inventory of structured settlement receivables to its balance sheet". B. Genex Capital Corporation Issues "Recall Notices" on Certain Pre-2015 Genex Capital Receivables - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com);

2. The National Association of Insurance Commissioners (NAIC), in its Statutory Issue Paper No. 160, which was finalized April 6, 2019,  made it clear that acquired structured settlement payment rights are not annuities or insurance products. See NAIC Statutory Issue Paper No. 160 p6 Section 6, footnote which states clearly  " This guidance is specific to acquired structured settlement income streams (legal right to receive future payments from a structured settlement) and does not capture accounting and reporting guidance for the acquisition of any insurance product (e.g., life settlement, annuities, etc." ]

3. In the event of insolvency of the underlying annuity issuer, investors in acquired structured settlement payment rights are screwed in 80% of the US states, have adopted the 2017 Revisions to the Life & Health Guaranty Associations Model Act (#520), which expressly excludes acquired structured settlement payment rights from insolvency schemes. The application of the exclusion expressly applies to acquired structured settlement payment rights that were acquired prior to the effective date that the investor's state adopts the 2017 Revisions to the Model Act. 

4. Section 5891 of the United States Internal Revenue Code of 1986, as amended states that "The term “structured settlement factoring transaction” means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration".

5. Structured Settlement factored receivables do not meet the definition of annuity under the laws of the State of New York. For example: "An annuity is a contract between a purchaser and an insurance company in which the purchaser agrees to make a lump sum payment or series of payments in return for regular disbursements, beginning either immediately (within 12 months) or at some future date"  Source: New York Department of Financial Services. 
6. Structured Settlement factored receivables do not meet the definition of annuity under the laws of the State of Georgia.  For example "An annuity is a contract you enter into with an insurance company to provide a guaranteed income in exchange for a payment or series of payments"  Source: Annuity | Georgia Office of Insurance and Safety Fire Commissioner
7. Ask MJSSA if any of their current structured settlement receivables offerings (falsely held out as annuities) are covered by your state's life & health guaranty association?  Here is where the MJ Structured Settlement Annuities has been a bit naughty and says that they are (not even a "maybe"). See number 3 from the screenshot of September 14, 2023 10:11 below.
8. 

   Wow, no no, just WOW!  Check out #3 | This is an excerpt retrieved 9-14-2023

Factored Structured Settlement Receivables Are An Unregulated Non-Insurance Product Sold, and Continuing to be Sold by Certain Salespeople and Companies under the Wholly Misleading "Secondary Market Annuities" 

Factored structured settlement receivables have been marketed to investors, including seniors in Florida, injury victims, trial lawyers and fiduciaries as "structured settlement annuities",  "secondary market annuities", even by people they trust that hold insurance licenses. There is little regulation of the the sales practices of structured settlement factoring companies and these receivables being deceptfully marketed as "annuities" or  "secondary market annuities" to investors by the secondary or tertiary markets. With what is known, the lack of regulation is just reckless at this point and has been for more than a decade.

Here MJ Structured Settlement Annuities is holding out a list of stuctured settlement factoring receivables for sale as if they are annuities and advertising them as offerings to investors. See  Available Offerings - MJ Structured Settlement Annuities (mjsettlements.com)

And the operative question is why? Where are Regulators Protecting Consumers and Investors?

Helpful References for Consumers

1. Under Florida law  Chapter 626 Section 99296 - 2023 Florida Statutes - The Florida Senate (flsenate.gov)  titled  Transfers of structured settlement payment rights. As opposed to sale or transfer of a structured settlement annuity contract.
2. annuities-guide.pdf (myfloridacfo.com)
3. Structured Settlements | What Is a Structured Settlement? (4structures.com)
4. What Are Structured Settlement Annuities? Structured Settlements FAQ (4structures.com)

____________________________________________________________________________

**SIDE BAR 

Broward County Confusion? Who led which horse to water?

"Let’s start with the basics. A structured settlement is an agreement reached during a lawsuit, where the guilty party agrees to pay the victim a specified amount of money in periodic payments".   -123Lump Sum website 123 Lump Sum in Quandry Over Whether Civil Defendants Are Guilty (or Liable)? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com) August 24, 2022

_______________________________________________________________________________ 

MJ Structured Settlement Annuities appears to also use the name EZStructuredsettlementannuties, based on what was found on its website at time of original posting.

Last updated October 20, 2023

Warburg Pincus and Prudential form Prismic Life Re Bermuda based Life & Annuity Reinsurer

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Prudential "to Reinsure Block of Structured Settlement Annuity Contracts", if Regulators Approve

Prudential Financial, Inc. and Warburg Pincus announced September 7, 2023, the launch of Prismic Life Reinsurance, Ltd. (Prismic Life Re), a licensed Class E Bermuda-based life and annuity reinsurance company.  Prismic Life Re will assume a $10 billion block of Prudential's structured settlements if approved by regulators.

Note: The Prudential press release abbreviates to the shorter "Prismic". However an internet search brings up results for a San Francisco company, named Prismic, that builds websites.  Given Prudential's structured settlement footprint in all 50 states, I've opted to abbreviate to Prismic Life Re.

Who is Warburg Pincus?

At Warburg Pincus, is a private equity firm based in New York City. Established in 1966, Warburg Pincus has invested more than $112 billion in more than 1,000 companies in more than 40 countries around the world.

Source: Warburg Pincus website

What is a Bermuda Class E Long Term Insurer?

According to the Bermuda Monetary Authority,

LONG-TERM - CLASS E: Long-term insurers and reinsurers with total assets of more than $500 million; and not registrable as a Class A or Class B insurer.

Prudential and Warburg Pincus, together with a group of investors, have agreed to make equity investments in Prismic Life Re and will oversee its long-term strategy through participation on its board of directors.

On September 11, 2023 Reinsurance News reported that Nomura has announced it has made  an equity investment into Prismic Life Reinsurance, a licensed Class E Bermuda-based life and annuity reinsurance platform, alongside Prudential Financial, Warburg Pincus and other investors.  Combined, Prismic Life Re will have an initial equity investment of approximately $1 billion. 65% of the equity is owned by a group of investors that Nomura is a founding investor of, while Prudential Financial owns 20% and Warburg Pincus owns 15%.

How Will The Reinsurance of $10B of Structured Settlement Annuity Contracts Affect Annuitants?

According to the September 7, 2023 announcement, Prudential expects to reinsure to Prismic Life Re a block of structured settlement annuity contracts with reserves of approximately $10 billion, subject to the receipt of required regulatory approvals.

Prudential’s obligations to the holders of the rights to receive structured settlement payments will remain unchanged following the reinsurance arrangement and Prudential will continue to administer the contracts.

Why is Prudential's Motivation?

From there, the release states that Prudential aims for Prismic Life Re to be a strategic reinsurance partner with the ambition to grow their reinsurance relationship materially in years to come. PGIM and Warburg Pincus will provide asset management services to Prismic.  PGIM is the investment management business of Prudential Financial, Inc.

Through expanded reinsurance capacity, Prudential expects Prismic Life will allow the company to provide more people with access to its industry-leading life and annuity products.

Charles Lowrey, chairman and CEO of Prudential Financial, Inc., said in the press release: “This unique reinsurance platform will play an important role in our vision to be a global leader in expanding access to investing, insurance, and retirement security for people around the world. Prismic Life Re will enhance our ability to address the evolving needs of our insurance customers and clients while continuing to meet our obligations to policyholders. It represents a formidable combination of industry-leading expertise, global capabilities, and the backing of two of the world’s leading insurance and asset management firms.”

Prismic Life Re will leverage PGIM’s and Warburg Pincus’ global investment management capabilities across public and private markets, including public fixed income, private credit, private real estate, and private equity. Prismic will become a client of PGIM Portfolio Advisory, a newly established affiliate within PGIM that combines asset-liability management expertise with portfolio strategy and asset allocation to deliver

Prismic Life Reinsurance, Ltd. announced that it expects to receive $1 billion in funding from Nomura Holdings, Inc., Prudential Financial, Inc., Warburg Pincus LLC and other investors -September 10, 2023 | MarketScreener

Prudential Financial, Inc. and Warburg Pincus announce launch of Prismic Life Re (pgim.com)

Prudential Financial, Inc. and Warburg Pincus announce launch of Prismic Life Re - Warburg Pincus