I read a copy of a recently filed Complaint today in a case involving a contractual dispute over a settlement, which contained a blanket allegation that defense brokers on the approved list of a particular casualty company "agreed to reimburse a portion of premium earned" to that casualty company. It was alleged that in this way the casualty company in question makes additional money on any structured settlement annuities purchased for or on behalf of injury victims. There was another casualty company named in the Complaint but there was no such allegation against it.
I may not be on the approved list of these particular casualty companies however I have acted as a broker in cases where a structured settlement broker of the first casualty company was also involved. I have not only been assured that there is no such consideration but the brokers have been willing to sign our Structured Settlement Affidavit. If you are plaintiff attorney and want reassurance, Insist on a Structured Settlement Affidavit.
In reading the Complaint I wonder if the attorney was fed the "rebate" allegation by a structured settlement broker? If so I hope that structured settlement broker has the facts to back up the pay to play allegation contained in the Complaint. Personally I doubt he has and if that proves to be the case, that it has effectively been used as a marketing tactic, that structured settlement broker deserves to be banned from the National Structured Settlement Trade Association for bringing the whole industry into disrepute.
The structured settlement industry is generally composed of honest ethical individuals and company representatives who do a good job in representing their clients.
One factual point to clarify, a structured settlement broker "earns a commission", he or she does not "earn premium" as was alleged. Insurance companies "earn premium".
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