by Structured Settlement Watchdog
How do six two-week courses in financial management at or through Cornell University qualify someone to have bona fides on structured settlements? In the same vein as my credential puffery slamming missive "4 Days in the Vicinity of Touchdown Jesus Does Not make You One of The Fighting Irish", it's evident that $2,900 and six two-week E-Courses Through Cornell, Does Not Make You "Gorgeous Gorge "
One certificant, hereinafter to be known for his "timely reporting", Christopher Lemieux, published an article on January 14, 2011 entitled "What Happens to My AIG Structured Settlement Payments"
A. Lemieux: "The American International Group (AIG) bankruptcy scare has understandably caused concern over settlement annuities purchased as a structured settlement from a personal injury case covered by AIG insurance companies".
Comments: (1) Settlement annuities are purchased from life insurance companies, not personal injury cases! They may however, be used to help resolve personal injury cases, as a qualified funding asset to to facilitate payment of some of the damages. (2) AIG insurance companies do not "cover personal injury cases", they cover their insureds against insured losses subject to the terms of their policies.
B. Lemieux: A structured settlement is a financial or insurance payment a claimant receives after a personal injury suit.
Comments: (1) The Christopher Lemieux definition is inaccurate and lazy. One better way to answer "what is a structured settlement?" can be found here (2) The payments from a structured settlement are, as the name implies, the result of the settlement of a personal injury suit. There are many other types of payments that a claimant can receive after a lawsuit (3) Structured settlements are not limited to personal injury suits. You do not even have to have filed a lawsuit to be eligible for a structured settlement. Many structured settlements are created in settlement of a claim or claims.
C. Lemieux: AIG has not affected the solvency of any annuities in a negative way, according to the general counsel of Creative Capital, a structured settlement broker. If you have a structured settlement annuity with one of the AIG companies, it is safe and still in force (as of January 2011).
- Annuities do not go insolvent
- If an annuity could go insolvent in any way, how could that be seen as a positive?
- What Creative Capital DID say, through its VP and General Counsel, Martin Jacobson, on September 17, 2008 was "All of AIG’s structured settlement subsidiaries appear to be solvent, backed by sufficient statutory reserves, surplus and general account assets to continually meet 100% of their structured settlement annuity obligations. None of the assets of these companies appear susceptible to be used to either pay or collateralize the debts of any AIG entity, including the parent corporation".
D. Lemieux: During the financial crisis of 2008, AIG was near bankruptcy and needed billions of dollars to survive. The federal government provided $85 billion, in Troubled Asset Relief Program (TARP)
Comments: According to the course description, a certificant in financial management at Cornell University is expected to be able to:
- interpret financial information
- assess the costs and benefits of business decisions
- apply risk and return considerations in capital budgeting
- analyze the debt-equity decision
- communicate operational and financial strategies
The following are a selection of pieces of "financial information" were apparently overlooked by Lemieux at the time of his posting.
- December 21, 2009 " AIG Plans TARP Repayment (Targets two years) Zacks Investment Research
- June 9, 2010 "Bernanke Says He Expects AIG to Repay TARP" Business Week
- October 3, 2010 "AIG En Route To TARP Repayment Plan" Zacks Investment Research
- October 5, 2010 " Treasury's TARP, AIG Bailout Costs Fall to $30 Billion
- January 14, 2011 "Update: US Treasury: AIG Has Completed Recapitalization Plan" Morningstar
- January 14, 2011 "Update: AIG has Repaid New Yorik Fed $47B" Morningstar
Dumb is a matter of opinion. The structured settlement watchdog suggests that amateurs do a better job of researching their topic before presenting inarticulate tripe that just pollutes the world wide web with inaccuracy and diminshes the utility of their work.