Much has been written about alleged breaches of ethics on the creation side of the structured settlement business. Having been in this business for a number of years I can tell you that, while not perfect, the business is nowhere near as dirty as some would have you believe. How much is real and how much is marketing rhetoric?
Some would have you believe that every broker introduced by the defense is paying, and every insurance company is receiving, kickbacks based on a percentage of commissions received. There even are have been rumors of brokers introduced by the plaintiff making such payments to plaintiff attorneys, or huge payments to state or national bar associations (purportedly in exchange for that association pushing its members to do business with the vendor making the large contribution).
One of the ways that I have dealt with the perception is to use a structured settlement affidavit. It's important to point out that I am not legally obligated to provide a structured settlement affidavit to anyone, but I do anyway to provide assurances to all parties that I do not participate in such practices, to address any concerns about the process in general that others have written about and to provide transparency in the process. I encourage co-brokers involved in a transaction with me to execute the structured settlement affidavit and most do.
Insist on a structured settlement affidavit or Certificate of Reliability and Assurances (a similar form of assurance offered by another structured settlement broker).
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