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

NSSTA Response to Structured Settlement Transparency Initiative

Mark Wahlstrom does a nice write up on the structured settlement transparency initiative over on The Settlement Channel.

Mark states that what he really believes is "the focus of this initiative is this author's belief that a lot of settlement professionals talk out of both sides of their mouths on this issue, declaring their animus toward factoring, but willfully accepting undisclosed compensation at the expense of annuitants when no one is looking".

Mark and I agree with "the principal that any broker who refers a client to a factoring firm, and who then accepts compensation for that referral, owes a duty to that client to inform them that they are being compensated and to further disclose how that compensation impacts their pricing on the factoring transaction".

Mark does not address two points which are equally important and have been part of the Declaration Concerning Business Practices on Structured Settlement Factoring since the beginning Download StructuredSettlementDeclarationonFactoringPractice :

1. The possibility that certain NSSTA members are selling structured settlement payee names and protected information to factoring companies or brokers.
2. The unilateral providing of confidential settlement documents by settlement professionals to factoring companies

I further assert that any structured settlement broker or settlement planner owes a duty to the source of their referral to the plaintiff to disclose that they engage in this activity and the extent and circumstances of their involvement.  In my opinion, plaintiff attorneys are entitled to this information be able to thoroughly evaluate the vendor. Similarly am insurer, claims adjuster, annuity issuer, which typically makes written representations to the annuitant concerning privacy, will not want one of their agents dishing information to cash now pushers. This author HAS received calls from upset annuitants who have been contacted by factoring companies even though the settlement was subject to a confidentiality clause. What liability does an annuity issuer have if the source of the confidentiality breach is one of THEIR agents?

Furthermore be aware, if you are not already, that the lists and an educational white paper ARE going to be distributed to every state trial lawyer association in the United States and the American Association for Justice in early 2009 for further distribution to their members, if THEY so choose. The lists will also be maintained on Structured Settlements 4Real.

Mark states "I believe John's initiative is a worthy voluntary endeavor to bring some level of accountability to the profession that NSSTA simply can't provide. I personally will fall into the "other" category as I am not closing the door to compensation from factoring transactions, but as stated above believe disclosure and court supervision is the best possible answer to these abuses. I think it is up to each professional member to decide if they want to participate in this initiative, but whether or not they do, they have an obligation to have a clearly stated policy when dealing with factoring issues with their clients".

Here is my company's published statement, where's yours?

Patrick Hindert Hones "Stand Up" Act With Ode To Adam Scales, Randy Snow and Co.

Patrick Hindert's year in review of the structured settlement industry is subdued but ends with the inevitable but comical ode to the J.G.("we're fighting for our life") Wentworth's mislabeled and HIndert's gross mischaracterization "Structured Settlement Thought Leadership Conference", which Hindert is now trying to re-label the Structured Settlement Knowledge Leadership Conference (SSKLC).

Here is what Hindert says:

"Structured Settlement Knowledge Leadership Conference (SSKLC) - Focusing  on the "needs and best interests of consumers", the first Structured Settlement Thought Leadership Conference, sponsored by J.G. Wentworth, was designed to bring together knowledge leaders who are "redefining structured settlement roles and processes". The Leadership Conference objective was to provide an educational platform and open forum dedicated to growing and improving the structured settlement market. In addition to four panel discussions and two individual presentations, the Leadership Conference featured a brainstorming session to improve the structured settlement process for plaintiffs based upon the subjects discussed in prior sessions. The panel discussions addressed the economic life cycle of a personal injury claim identified by Adam Scales in his 2002 Wisconsin Law Review article titled "Against Settlement Factoring? The Market in Tort Claims has Arrived". One result of the Leadership Conference was the subsequent 2008 structured settlement survey conducted by J.G. Wentworth"

NOW here's why Hindert is a joke, in my opinion:

1. The mislabeled and misrepresented conference was clearly designed to build a beachhead into the structured settlement industry following the "turning" of apparent J.G. Wentworth "double agent" Hindert. Until exposed by DealFlow Media and flushed out by this author, the new NSSTA Executive Director was reportedly on the attendee list. As a side note, as of today 9/10 of Hindert's most recent posts are connected to the ailing cash now pusher.
2. Hindert states the conference was dedicated to "growing and improving the structured settlement market", a topic that the pedantic Hindert has implied is through factoring but has never been able to address "why" articulately, having wimped out on a debate that he challenged this author to in May.
3. Has anyone ever seen anyone put more emphasis on a "one hit wonder" paper by associate professor Adam Scales? How pathetic that Patrick Hindert has nothing current to draw on. Adam Scales is simply NOT a respected authority on the topic of structured settlements.
4. Why did HIndert promotes false advertisers as "thought leaders"?
5. Lastly the biggest guffaw goes for Hindert's relentless advocacy of a mislabeled survey of a tad more than 100 that is statistically invalid. Thanks to Hindert's promotion the irrelevant J.G. Wentworth survey was instantly as tired as Adam Scales' paper is.

Patrick Hindert appears to be setting aside his life's work to hone this "stand up act". Bravo Mr. Hindert, please take a bow.
 

 

J.G. Wentworth Continues to Lie About Status in Structured Settlement Industry

by Structured Settlement Watchdog

J.G. Wentworth continues to lie that it is the "undisputed leader" in the structured settlement industry.

Download Jgwentworth.com - Site Info.. Alexa 12252008

For reference the definition of the word "undisputed" is "accepted without question; "undoubted evidence", or "unquestionably" true.  -Survey of various published dictionaries

To prove that the J.G. Wentworth statement is a lie one would simply have to find at least one person who disputes the statement. I am such a person. Furthermore, I believe that I could find multiples who would also dispute the J.G. Wentworth statement. Logic dictates that if any part of the sentence is untrue. then the whole sentence is.

1. I dispute that J.G. Wentworth is a leader in the structured settlement industry, much less the leader.
2. I dispute that J.G. Wentworth is even in the structured settlement industry, even though its apparent "agent" or promoter, Patrick J. Hindert of S2KM, is an associate member of the NSSTA.
3. I dispute that, save historical volume and advertising spend, J.G. Wentworth is a leader in its own industry, the factoring industry at the present time. The Philadelphia Inquirer stated that J.G. Wentworth is trying to survive on December 23, 2008 
4. To add to the "undisputed leader lie" the company has the notoriety of fostering the development of what, in my opinion, is one of the biggest frauds in advertising with its "cash now" pushing to tort victims. I've already developed the "cash now" pushing is fraud argument on this blog and have support from the published statements of more than one company in the factoring industry.

What does Ratings Outlook from A.M. Best Mean?

This morning this author received a communication which stated:

"On December 23, A.M. Best removed "under review with negative implications"  and affirmed the A+ (Superior) financial strength ratings of The Hartford's operating companies. Please see the press release and key messages file attached ".Download A.M. Best Press Release and Key Messages

While the message suggested to look at the attachment those that do not would miss the fact that a "negative outlook" was assigned by AM Best. The above is somewhat misleading in that it suggests that a rating is affirmed and all is well with the world. That is not exactly what the press release says.

What is Ratings Outlook?

Best's interactive Ratings (A++ to D) are assigned a Rating Outlook that indicates the potential direction of a company's rating for an intermediate period, generally defined as the next 12 to 36 months. Rating Outlooks appear in the rating rationale section of a company's AM Best Credit reports

At a time when the ratings services are being called into question by federal regulators, don't you think care should be taken not to parse the ratings analysis in such a way as to create an appearance of "half truths" in what could reasonably be foreseen to be used in marketing the insurance products of the company being rated?

Internet Surpasses Newspapers as Primary News Source-Survey

The Internet has surpassed newspapers as the primary source for national and international news for Americans, according to a recent survey by Pew Research Center. While television remains the preferred medium for Americans, according to the survey, 40% said they get most of their news from the Internet, up from 24% percent a year earlier. 35% cited newspapers as their primary news source.

Seventy percent of the 1,489 people surveyed by Pew said television is their primary source for national and international news.

The findings of the survey underscore why, a strong Internet presence is increasingly important to structured settlement consultants, settlement planners, litigation recovery management specialists and  to any business in the 21st Century.

Structured Settlements 4Real publishes a monthly survey of the Alexa Traffic rankings for web sites and blogs in the structured settlement, settlement planning and litigation recovery management space.

 

 

J.G. Wentworth Fighting To Stay In Business-Philadelphia Inquirer

Today's Philadelphia Inquirer suggests that that J.G. Wentworth's grim reaper may be nigh on Christmas Eve. 

Joseph N. DiStefano reports:

"J.G. Wentworth Inc., Bryn Mawr, has cut its payroll two-thirds as it fights to stay in business.

Most of the cuts followed last month's downgrading of Wentworth's "corporate family" credit rating to "Caa1."

The cuts reduced Wentworth's staffing to 80, compared with the 250 it employed last year. They also enabled Wentworth to regain its investment-grade credit rating. The firm, which buys legal settlements and annuities at a discount from people who don't feel they can wait, on Monday sold $74.6 million in notes, backed by structured settlements and annuities. Deutsche Bank AG and Jeffries & Co Inc. closed the sale to yield 8 percent".

Funny Thing About JG Wentworth Is...

J.G. Wentworth's glossary STILL does not contain definitions to the terms structured settlement factoring transaction or structured settlement transfer even though these words describe the financial transaction intrinsic to J.G. Wentworth's operation and that of its entire industry.

That's true "leadership" for you.

Meanwhile JG Wentworth, the nation's most prominent cash now pusher, announced today that it had completed a  $74.6 million securitization, rather flaccid considering the sizes it had previously been swinging around.

05/19/2008 $117MM

03/14/2008 $111MM

10/3/2007 $99.5MM

12/14/2004 $152MM  Source: Internet

J.G. Wentworth CFO John Calamari said in the press release  “There have been very few asset backed deals during the fourth quarter of 2008.” By contrast he said that, according to Thomson Reuters, during 2007 there were 1,142 asset-backed deals totaling $864 billion.

"Influence" for Literary "Flatulence"

by Structured Settlement Watchdog

For someone who is "beyond structured settlements" one wonders why these two big news stories have escaped Patrick Hindert?  How about the JG Wentworth "army" getting smaller and the SEC 151A changes which could soon change how settlement planners do business? Add to that the blasé and tardy reporting without meaningful comment of the JG Wentworth downgrade by S&P to junk status at CCC+.

It has been an interesting 10 days to say the least and Hindert's "flagship" the JG Wentworth-1 sits there like a monotonous TV test pattern.

In a month Patrick Hindert will address the NSSTA at its Regional meeting in Orlando. Not only is it an affront to all NSSTA members that the structured settlement industry's Nathan Hale is being invited to speak, but I have been hearing from a number of likeminded individuals who are seriously considering not coming to the event as a result of his inclusion. The structured settlement factoring industry's poorly disguised mole seems to be buying an awful lot of "influence" for his literary "flatulence" and $250.

"Cash Now" Stumpy's Whole Forest Full of BS

Greg A. Williams, a  wannabe cash now expert from Florida International University (FIU) on Ezine, claims to be "well read in Finance, Legal Topics, Technology, Education, Travel and Cooking" . Judging from these images we can tip our hats to his impressive Origami skills. Yet Greg A. Williams is unimpressive and flunks as an expert on "getting money for structured settlement".  Here's where "Stumpy" Williams' paper tree forest goes up in flames:
 Make sure the company that is offering the cash is well established. It is important that the payment purchasing company guides and manages the court order process for you. If you do not get a court order, you will be responsible to pay a 40% tax on the cash. The court order was added to the IRS law as a requirement to avoid paying tax on the injury settlement. Get started now! Fill out a form on this site to connect with settlement finance professional".

Structured Settlements 4Real Commentary

1. The operative words are "Internal Revenue Code IRC)  NOT "IRS Law".In the United States, the Congress passes tax laws and requires taxpayers to comply.The taxpayer’s role is to understand and meet his or her tax obligations.The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply  pay their fair share.Source: Internal Revenue Service (IRS).
2. Pursuant to IRC 5891, a 40% excise tax is applied on the factoring discount in the event that the conditions of IRC 5891 are not satisfied by the purchaser of the structured settlement payment rights.
3. As to the tort victim, provided a minor or incompetent is not involved the settlement payments are excludible from gross income under IRC 104(a)(1) or  104(a)(2) ( i.e. representing workers compensation or damages on the account of personal physical injury or physical sickness the settlment payments) and there is no need for Court Order "to avoid paying income tax from an injury settlement".

Greggo, perhaps you aren't as "well read on Finance and Legal Topics" as you thought.

New York City Area Structured Settlements...Who Writes Structured Settlement Annuities in New York City?

Which insurance companies write structured settlement annuities in Bronx , Brooklyn, Kings, Queens and Staten Island, Nassau, Suffolk, Westchester County, Rockland County,  Orange County, Fairfield County (CT) and other counties in and around New York City?

The following companies are the primary writers of structured settlement annuities for New York cases.

1. Allstate Life Insurance Company of New York  Home Office: Hauppauge, NY 
2. American International Life Assurance Company of New York Home Office: New York, NY
3. Hartford Life Insurance Company   Home Office: Hartford, CT
4. John Hancock Life Insurance Company Home Office: Boston, MA
5. Liberty Life Assurance Company of Boston  Home Office: Boston, MA
6. Metropolitan Life Insurance Company   Home Office: New York, NY
7. New York Life Insurance Company Home Office: New York, NY
8. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
9. The Prudential Insurance Company of America  Home Office: Newark, NJ

The above list of New York admitted structured settlement annuity issuers apply to settlements only. Cases in Fairfield County, CT would substitute Allstate Life Insurance Company and American General Life Insurance Company for numbers 1 and 2 respectively. A limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above annuity issuers apply:

1. Allstate Life Insurance Company of New York 
2. American International Life Assurance Company of New York
3. Hartford Life Insurance Company (excluding damage components requiring a temporary life annuity
4. Metropolitan Life Insurance Company

For more details please click here for a more comprehensive list on one page including third party financial ratings.

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers

Current as of 12/16/2008

Structured Settlement quote form online. Click title or call 888-325-8640 toll-free for structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, structured sales quotes for business installment sales and real estate installment sales and periodical payment quotes

The following companies are the primary writers of structured settlement annuities for New York cases.