In further follow up to "The Fugu Logic" of the Wall Street Journal and the Secondary Market for Structured Settlements, this author contacted John Bulbrook, CLU of Bulbrook-Drislane in Wellesley Massachusetts. Bulbook is a long time insurance General Agent for over 25 years and has built up a considerable niche as a facilitator for individuals and intermediaries who assist them, who wish to allocate funds to structured settlement payment rights. Here is the video podcast that John and I did on LBN on April 30, 2010:
When I reached Bulbrook this morning he had already read the Zweig piece and expressed his opinion that the article was an example of "yellow journalism". Based on the article the author Jason Zweig does not appear have good understanding of this segment of the market.
- The WSJ article highlights a single case out of the thousands that have been approved smoothly.
- Bulbrook suggests that a case such as described in the WSJ article would probably never close
- As part of the due diligence process there are bankruptcy checks on the seller, checks for tax liens with the government, child support liens and others. A certified benefits letter is sought from the annuity issuer to determine (1) if the payments for the proposed transfer do exist; (2) that the seller actually is the owner of the structured settlement payment rights subject to transfer. Copies of such items are included with the closing book.
- His firm only works with licensed insurance agents and his agency also provides E&O insurance for buyers broker placements through the agency.
Andrew Cravenho of the Settlement Quotes, LLC has also responded to the WSJ article with his perpective http://www.structuredsettlement-quotes.com/blog/?p=334