by John Darer CLU ChFC CSSC
Prudential Insurance Company of America ("Prudential), one of the two entities that issues Structured Sales annuities to fund installment sales obligations has been working on requesting a Private Letter Ruling (PLR) for Structured Sales. Prudential recently had a pre-filing hearing with the U.S Internal Revenue Service, a crucial step in this process.
Pruco Assignments Corporation, the Barbados based entity that takes on installment sales obligations funded by Prudential structured sales annuities announced today, "that as a result of the progress at the Hearing, Prudential has decided to suspend the underwriting of annuity contracts for structured sales to enable them to reassess the nature and structure of the annuity contract when used for this purpose. This moratorium is indefinite at the present time.In light of this, Pruco Assignment Corporation will NOT be accepting assignments for Structured Sales transactions until further notice".
Both Pruco and Prudential stated that they remain committed to the structured sales market, and are hopeful that shortly, they will again be able to facilitate Structured Sales assignments.
This leaves Allstate International Assignments, Ltd as the only entity that will accept the assignment of installment sales obligations funded by structured sales annuities.