by Structured Settlement Watchdog®
"If a structured settlement is arranged for me, how do I know that this money is safe?
...Life insurance companies are also backed by state guarantee funds..."
-Kathleen Blevins, Settlement Professionals, Inc. Roseville, CA**
California Insurance Law Prohibition on Advertising State Guaranty Association
|§ 1067.17 “Use of existence of association for purpose of sales, solicitation, or inducement to purchase insurance; summary document; disclaimer; contracts not covered by association” (a) No person, including an insurer, agent, or affiliate of an insurer shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television station, or in any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the California Life and Health Insurance Guarantee Association for the purpose of sales, solicitation, or inducement to purchase any form of insurance covered by the California Life and Health Insurance Guarantee Association Act. Provided, however, that this § shall not apply to the California Life and Health Insurance Guarantee Association or any other entity which does not sell or solicit insurance.|
The above speaks for itself. The questions are:
(1) Where is the compliance oversight at SPI?
(2) Why are my industry colleagues not paying attention to the rules?
**as of 1/21/2010 11:05pm EST
Amd while we're at it... from the same website in the FAQ section:
"Would you be better off with a lump sum settlement and investing yourself?
In doing so, you would most likely incur substantial tax liabilities on the income produced by your investments. Private investment income is simply not eligible for the tax-free benefits available under the Code. And, in contrast to private investments, there are no brokerage fees or expenses when selecting a periodic payment settlement."
What Blevins says is inaccurate because municipal bonds provide tax-free income. IRC 103(a) is the statutory provision that excludes interest on municipal bonds from federal income tax. To wit
"Exclusion Except as provided in subsection (b), gross income does not include interest on any State or local bond".