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

Prudential Explains Why It Is Putting Brakes on Non Qualified Structured Settlements

The official reason given that Pru pulled out of the non qualified structure market was management's perception of limited success, of which 50% was structured attorney fees. It appears management felt that the attorney fee market could be served using the IRC 130 qualified assignment process. This precludes non qualified cases including divorce, environmental, employment and other applications.

In a memorandum delivered to its appointed brokers Saturday May 30, 2009 Prudential (1) reaffirmed its commitment to the structured settlement market (2) stated that Prudential collected close to $1B in structured settlement annuity premium in 2008 and (3) implied that it should exceed that in 2009 if one projects out from its $289MM first quarter.

While I appreciated getting the memorandum I and others ares still puzzled as to why the memorandum DID NOT accompany the after 5pm EDT announcement on Friday, which perhaps left more that a few folks humming a few bars of The Smiths' classic...

"Panic on the streets of London
Panic on the streets of Birmingham
I wonder to myself
Could life ever be sane again ?"

As they say "perception is everything"!

Prudential Bombshell! No More Non Qualified Assignments Through Pruco!

Effective immediately, Prudential has decided to suspend the sale of annuities in
connection with non‐qualified assignments through Pruco Assignment Corporation
(“PAC”).

In recognition of open cases that brokers may currently have pending, PAC is
authorized to accept purchase commitments (“lock ins”) on Prudential’s behalf on or
before June 12, 2009. Current pending lock ins will, of course, also continue to be
honored. Further, all funds for these cases must be received by PAC on or before June
30, 2009.

Please note that in order to ensure that all potential cases are properly
identified and reserved for, all new cases must be locked in prior to funding.
Current Annuities funding Non‐Qualified Assignments

This suspension of sales will have no impact on existing non‐qualified assignments.
In its information  release Prudential stands behind its commitments on all Prudential annuities owned by PAC. 

The question then becomes one of why thes industry irking Friday after hours announcement?

I hate to speculate but...

I spoke to a colleague a few moments ago who had a $150MM case earmarked for Pruco, so it can't be production.

Another possibility...On May 4, 2009 the Wall Street Journal published an alert which said that "Companies Face New Tax Curbs". I asked Pru about it the same day. On May 5, 2009 I received a response that the source "couldn't opine at this point as we don't know measures will be implemented"/ The source indicated that the feeling was that this didn't apply to the Pruco product as the funds relating to the product are in the US, tax reportable where applicable and there is no deferral of profits element in the producer or program structure. Was the feeling wrong?

 

A Poem Inspired by J.G. Wentworth Chapter 11 Filing

by John Darer

 

(loosely to the tune of Simon & Garfunkel's Sounds of Silence-)

Hello Patrick, my old friend
Pardon me I must gloat, again 
That JG Wentworth who you once embraced,
Filed Chapter 11 leaving you disgraced,
Despite the mirth swirling 'round our brains 
The "Thought Leader" NOT still remains.

 

In September you bashed AIG

For its financial dealings so we see

Your lack of new comments on J.G.

Simply underscore your hypocrisy

Seems Mr. Wentworth to you can do no wrong

Now they're bust your blog is like... "so long!"

 

Many restless blogs I typed alone
Making points with skill I continue to hone
'Neath the halo of a greater good
I saw that Mr Wentworth was no good,
When my eardrums were violated by the Viking Chorus 
You're on frickin' mute, what are you HO-A-RSE? 
 

And from the Internet I saw
Endless seriata four score and more
JGW hyping without thinking
Pedantic postings, many were stinking
Patrick's blogs of a voice never shared
En Francais they have a word, simply "merd"

"Hear Ye," said I, "ignore thee so
The factor ads that like a cancer grow
Heed my warnings that I might teach you
Read my thoughts that I might reach you"

My posts like silent raindrops fell

These Cash Now Pushers, "ooh that smell"

And NOW your blog is silenced.

 

Why did Pat Hindert bow and pray
To the Viking trojan and now not bray?

What say you in Terrace Park?

Silence unbecoming, be not "Odd Vark"!

 

 

"Worst Slide Story"

If you enjoy gallows humor you will enjoy Walt Handelsman's irreverent cartoon parody of West Side Story which appeared last month in Newsday online. If you can view Flash animation on your computer then follow this link :

http://www.newsday.com/media/flash/2009-04/46217527.swf

Structuredsettlementreferencesonline.com is bloody useless!

by John Darer

Some made for Adsense geek has created a new blog website called "Structured Settlement References Online" that can be found at structuredsettlementreferencesonline(dot) com and is anything but what the name suggests.

Much of the information has been culled from the bowels of the industry archives. I don't know how long ago Richard B. Risk, CSSC used a juno.com email address, but one clue that it was VERY VERY LONG AGO is the National Underwriter article cite which states "that about 25 life insurers are competing for the estimated $4 billion spent annually by casualty insurers and self insured corporations to purchase structured settlements" By triangulating several sources one can deduce that the information is at least a decade old!

Then there is a 1995 article by Chris Shumate, a 1997 article by Don McNay and a 1989 article by Andrew J. Larsen. Poignant at one time but not necessarily timeless.

Unfortunately the joke is on the industry, the authors of these articles and others because the creator of the website is plastering his/her with pay per clicks (Google Adsense) at $50 per click. And the Alexa ratings of this website blow away some of "da play-az"in the structured settlement industry.

On the other hand the creators of such sites might provide a valuable service and make more money with original current relevant content.

John Darer/Jan Schlichtmann Interview on Legal Broadcast Network Voices of The Law

Following is my interview with Jan Schlichtmann which appears on the Voices of The Law Channel of The Legal Broadcast Network. Watch the interview and learn why I became a watch dog and why do what I do.

Note: A portion of the interview deals with "the Connecticut woman" factoring saga which at the time of the interview (April 16, 2009) had not been resolved. Background reading on that case can be found at this link Bentzen Funding Apology Letter...From "Cash Now Pusher" Structured Asset Funding President!

Longer Rated Age Response Times From Structured Annuity Issuers

by John Darer® CLU ChFC CSSC RSP

Rated age requests are trending tiwards a longer response times following submission of medicals  . What was once the matter of several hours is now taking 24-48 hours in some cases. Whether the cause is a matter of a trimmed work staff, or a flood of workers comp medicals clogging up the system, the delays are something that now needs to be planned for in advance.

A rated age is an important component of a structured settlement pricing when there are life contingent payments such as:

• Pricing out a life care plan
• Providing a back stop to a special needs trust or  to an investment strategy
• Funding the deferred component of a Medicare Set Aside Trust (MSAT) at the maximum discount
• Funding the temporary life elements of a New York 50A or 50B Structured Judgment
• Funding lifetime retirement benefits or any other lifetime payment stream

Brokers and their staff are encouraged (if they do not already do so) to take the time to review the medicals that they send before they send them. This helps to eliminate redundant reports and may identify salient points for the underwriter's consideration. Perhaps there will be enough resulting time saved to help speed up response times.

J.G. Wentworth Bankruptcy Confirmation Hearing June 1, 2009

J.G. Wentworth announced that the confirmation hearing for the prepackaged bankruptcy plan filed May 19, 2009 for its non-operating holding company affiliates has been set for June 1, 2009.  J.G. Wentworth reports that over 90% of the term lenders (the only creditors affected by the plan) approved the plan prior to filing. The JGW cash now pushing subsidiaries continue to conduct business as usual and are said  not to be impacted by the proceedings. Approval of the pre-packaged plan at the June 1, 2009 confirmation hearing will pave the way for the injection of $100 million of new equity to support ongoing operations.

Registered Settlement Planner Designation Indicates Serious Commitment to Settlement Profession

by John Darer CLU ChFC CSSC RSP

There is a growing concern on the part of regulatory agencies – including the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Senate Committee on Aging – that unscrupulous advisors are using dubious credentials to take advantage of consumers. While much of the focus to date has been on approaches made to seniors, similar issues apply to solicitation of tort victims and their families.

The following article by this author appeared in the May 25, 2009 Connecticut Law Tribune and introduces Connecticut's legal community to the Registered Settlement Planner designation.

Download Reprint_JOHN DARER article on Registered Settlement Planner_052509

 

Structured Settlement Company Customer Service Phone Numbers and Links

by John Darer CLU ChFC CSSC RSP

4structures.com, LLC has posted a useful web page which contains the phone numbers and links to every state insurance department in the United States.

Each state insurance department has a website which contains information useful to consumers, including tort victims and their families and other structured settlement stakeholders, including agents/brokers, insurers, lawyers and judges.

4structures.com, LLC  provides the  web page as a time saver for consumers and other structured settlement stakeholders because the insurance department phone numbers and links are all on one page!

From the State insurance department webpages you should be able to:

• Look up the individual who is soliciting you to see if they are licensed in your state.
• See if the annuity issuer being propposed is admitted to do business as an insurer in your state.
• Check on what protections areavailable to insurance consumers. There are also a number of questions concerning insurance product protections that agents/brokers would like to help you with but the agents/brokers may not be permitted to answer under different state insurance laws. Those who have such questions are encouraged to direct their questions to the relevant insurance department in their state.

The 4structures.com, LLC website also contains a useful list of the customer service phone numbers of structured settlement annuity issuers. The list includes both current and former structured settlement annuity issuers. Thus if should you have a structured settlement that was set up many years ago and you need a form or have a question, you can stop pulling your hair out looking for contact information!