Structured settlements expert John Darer reviews the latest structured settlements news and information and provides expert opinion and commentary, including settlement planning issues/ ideas for settlement management, incisive Structured Settlement Watchdog® commentary that may be helpful to lawyers, plaintiffs, claims adjusters, judges, the news media, sellers and buyers of structured settlement receivables,and interested others. The style is spicy, informative, irreverent and effective. The most prolific structured settlements blog, Now in 19th Year! Check back daily for something new.
Pat Hindert and I seem to be killing one bird with two stones, or at least two stones thrown from the opposite side of the Single Claimant 468B bird.
There is no black and white, only shades of gray
"There is no black and white, only shades of gray" goes the chorus to the 1960s tune by Barry Mann and Cynthia Weil and sung by the Will-o-Bees and The Monkees (see below). This tune could be the theme song of certain structured settlement planners, settlement consultants, settlement planners, or whatever they want to label themselves today, who prefer to operate in the gray area of 468B, possibly because the black or white might not be what they want to hear.
When the clarification was removed from the Treasury Priority Guidance Plan after many years, some privately told me that being in the gray was OK, because what if Treasury came back with something unfavorable? Jack Meligan and Dick Risk knew it, which had to be the reason for their attempt to back door the single claimant 468B issue into a February 2010 IRS hearing on 104(a)(2).
Concurrent with the Society of Settlement Planner's legal effort to clarify single claimant 468B which began in or about 2003, I learned that my late friend Richard Halpern DID seek an IRS Private Letter Ruling on single claimant 468B. During one of the numerous conversations I had with Richard prior to his untimely death from cancer in December 2009, Richard detailed his thoughts on single claimant qualified settlement funds. And what may come as a surprise to many people, they were not a whole lot different than what Marty Jacobson presented at NSSTA this month.
A leading tax authority on structured settlements, Robert Wood recommends "avoiding the single claimant controversy by establishing QSFs with multiple claimants"
A newly minted erudite LLM from NYU Law School has a lot of good things to say, but if we were to stack all of the the errors and omissions insurance of the single claimant QSF "jockeys" out there and the attorneys that are providing the tax advice (such as "the gentleman from Oklahama") to them and their clients, is it enough to cover the shortfall if they are all wrong?
Given the hundreds of thousands the SSP and its members expended on Skadden Arps legal advice related to the Treasury clarification that did not happen, what's an additional $50,000 for a Private Letter Ruling?
Increasingly, "the tax problems associated with litigation recoveries are nuanced and not suited to cookie-cutter solutions" says tax attorney Robert Wood in an excellent picece entitledTop 10 Mistakes Made by Contingency Fee Lawyers , published May 16, 2011 in Tax Notes
The important message is that...
"Lawyers, structured settlement brokers, accountants, financial advisers, andothers are likely to encounter these issues. They often arise in ways that combine multiple rulesapplying across a mix of confusing facts and documents. Learning when, where, and how to address theseproblems can be challenging. Even identifying the issues requires attention to detail. Whatever yourrole in these situations, address the tax issues early, often, and thoughtfully".
I recently highlighted one issue that appears to fall into what Wood is talking about and that is whether or not a decedent's heirs may structure pre-death damages of the decedent where, for example, there has been extended period of pre-death pain and suffering pled and documented. that must flow through an estate and then be distributed as an inheritance, subject to the decedent's will or surrogate decision, under IRC 102. IRC 130(c) is silent on it.
If you or your client are considering a structured settlement please remember this adage "It's NOT all about the rate". Although any structured settlement broker or settlement planner worth your time will hondle with an annuity issuer for a price, using that as the sole driver of prudent financial planning could end up biting you in the "tuchas" as some Executive Life Insurance Company of New York annuitants (who took structures from 1983-1991) may soon find out. It remains to be seen with an Order to Show Cause concerning the pending liquidation of the company to what extent those folks get 100 cents on the dollar going forward.
If the amount being structured is in excess of $1,000,000 and the payments are of long duration, be prepared to diversify the risk even if it means a slight drop in benefits from the cheapo cheapo price.
Global Top 10 Rankings Three Month Trailing Alexa ratings (as of May 30, 2011)
J.G. Wentworth 311,531
Peachtree 602.424
Settlement Quotes, LLC 641,529
Sovereign Funding 645,112
Solid Funding 1,006,678
Singer Asset 1,185,361
Woodbridge 1,384,186
Genex Capital 1,393,830
Quote Me a Price 1,440,212
Stone Street 1,697,986
Eligibility for ranking: Companies whose primary business focus is the secondary structured settlement (factoring) market to include direct funders, brokers and intermediaries and factoring auctiion sites.
Despite the "argol-bargolous" recently wafted over the Smoky Mountains, from outside of this month's "Top 10", two factoring auction websites made the top 10 this survey.
Derek Jeter has been on a tear since my last posting, with 4 more hits, almost stroke for stroke with "Wade Blogs" (who had 8 blog hits), as the Yanks beat up on the Mariners. Jeter also had a base hit against the A's this afternoon where Bartolo Colon pitched a compelte game shutout. On Saturday Jeter also broke Rickey Henderson's stolen base record as a Yankee with his 327th steal. Bravo!
The latest standings
Derek Jeter 2,981 hits
Wade Blogs 2,943 blog posts
"Wade Blogs" is the "nom de plume " of John Darer, who is President of 4structures.com, LLC, a Stamford, Connecticut based structured settlement and settlement planning company and author of the structured settlement industry's most widely read website ( US rankings, as measured by Alexa). 4structures.com, LLC which will donate $1,000 to Derek Jeter's Turn 2 Foundation, Inc. if Jeter gets 3,000 hits before "Wade Blogs" reaches 3,000 blog posts. Darer is a lifelong Yankees fan.
Ther is an incredible volume of structured settlement information on the internet and not all of it is relevant. it's not always easy to find information from individuals or companies that can actually place you in a structured settlement annuity. In an effort to help, the structured settlement watchdog, John Darer, has conducted a monthly structured settlement website survey using Alexa (a service of Amazon) amd presenting his findings to the public for the last 4+ years.
Global Structured Settlement Website Top 10(Alexa Rank as of 05/30/2011) of Structured Settlement and Settlement Planning Industry websites* (+ or- traffic from previous report). Lower number is better (e.g. Google.com is ranked 1 in the overall scheme)
No other primary market structured settlement web sites received USA rankings from Alexa in this month's survey.
The 3 month data is used as it is a measure of consistency. The USA data is meaningful because the United States is the country in which the predominant number of structured settlements are written.
(out of a possible 50 months-this structured settlement survey began in April 2007)
GLOBAL STRUCTURED SETTLEMENT WEBSITE RANKING
Times Ranked #1 in 3 month global structured settlement website traffic, as measured by Alexa:
Structured Settlements 4Real blog (John Darer) 33
S2KM blog 12
Speaking of Settlements 4
Ringler Associates 1
Times Ranked #2 in 3 month global structured settlement website traffic, as measured by Alexa:
Structured Settlements 4Real (John Darer blog) 17
4structures.com, LLC 15
Speaking of Settlements 6
S2KM blog 5
Structured Settlement Services 3
Delta Settlements 3
Ringler Associates 1
USA only Structured Settlement Web Site Ranking (out of a possible 21 months; survey began September 2009)
Times Ranked #1 in 3 month USA only structured settlement website traffic, as measured by Alexa.
Structured Settlements 4Real blog (John Darer blog) 19
Speaking of Settlements 2
Times Ranked #2 in 3 month USA only structured settlement website traffic, as measured by Alexa.
4structures.com, LLC 11
Delta Settlements 5
Speaking of Settlements 4
Structured Settlements 4Real blog (John Darer blog) 1
Website survey criteria: Companies whose primary business is structured settlement factoring transactions are not counted in this survey because: (i) despite the propaganda and efforts of some to "frame" them otherwise, (i) they are part of the cash flow, factoring or settlement purchasing industry. sometimes referred to as "the secondary market"; and (ii) the additional purpose of this survey is to identify legitimate sources of information for tort victims, their families, consumers, attorneys, judges or companies looking for structured settlements and the structured settlement brokers, registered settlement planners, certified structured settlement consultants, settlement planners, appointed structured settlement companies and agencies, United States Treasury structured settlement providers, or other financial professionals, who have the ability to deliver this information
Who should be held responsible for placing crippled New Yorkers and others into Executive Life Insurance Company of New York structured settlements? Following news that its shortfall has doubled since 2007 and that the levee for some of the 5,000 or so Executive Life of New York structured settlement annuitants may be insufficient to contain the "onrushing" periodic payment obligation "flood waters", taken together with the amount of information available about Executive Life insurace Company of New York and First Executive Corporation during the time the annuities and policies were sold isn't it really is a question of what did you know and when did you know it?
While I never placed any of my clients into an annuity or life insurance issued by either Executive Life, I researched and wrote this article as an advocate for structured settlement annuitants, industry professionals and others looking for the still unknown facts of how the Executive Life Insurace Company of New York problem got to be this big and has apparently been swept under the rug for so long.
A. The Executive Life of New York Qualified Assignments
A significant number of annuitants with remaining obligations have structured settlements established by way of a qualified assignment to First Executive Corporation, or an affiliated assignment company SAFE (how unfortunately ironic ). These companies and their successor, FL Assignments were effectively released from liability under First Executive's Chapter 11 Bankruptcy reorganization plan.
B. Public Information That Was Available, Or Should Have Been Readily Available to Those Who (1) sold Executive Life of New York structured annuities, and/or (2) in combination with doing so, recommended qualified assignments to First Executive Corpation of SAFE, or the Insurance Agencies With Whom They were Affiliated
The argument that "one cannot be clairvoyant about everything in life" holds litle weight when such information was clearly available to those who sold such contracts.
"Connecting the Dots" with quotes from the Executive Life of New York timeline...
Poignant Quote #1
"On the verge of folding in 1974, the company gained notice for innovations that made it into one of the fastest-growing insurers in the industry in the 1980s. First Executive became a top buyer of bonds from Michael Milken, head of the California operation of Drexel Burnham Lambert. This association cost the company much scrutiny as Milken came under federal indictment in 1989, and Drexel went bankrupt in 1990. The loss of public and agent confidence combined with a rocky junk bond market to result in the announcement of an $835.7 million fourth-quarter loss in spring 1990. The consequent subject of Securities and Exchange Commission (SEC) probes, lawsuits, and bad publicity, First Executive was required to develop a new strategy to fuel growth and win back confidence"
"The Cuomo administration, in particular the New York Insurance Department, has been very supportive of the life insurance industry's search for innovative ways to remain competitive while continuing to promote growth for companies of all sizes. Most notable in this effort was the 1983 Life Insurance Investment Bill. Prior to this (Mario Cuomo) Administration's liberalization in 1983 of the investment restraints upon life insurance companies, no domestic life insurer could make any investments in junk bonds, except under a "basket" which permitted a maximum of 4% allowance for investments not otherwise permitted". -
-from the testimony of James Corcoran, who at the time of testimony was New York Superintendent of Insurance to U.S. House subcommittee on Commerce, Consumer Protection and Competitiveness as published in "The Collapse of Executive Life Insurance Company and its Impact on Policyholders, a hearing before the Committee on Government Reform October 10, 2002 Serial Number 107-142 pp 51-53
Comments: When I entered the insurance business in 1983 with Northwestern Mutual, our life insurance portfolio rate (which included both old and new money) and consistent dividend paying history had to compete with the then new Universal Life, with lower prices based on improvements in mortality tables and more important to this discussion, the actuarial assumption of the "anomaly rates" lasting well beyond their "shelf life" and un-structured premium payment requirements. Those original universal life products were an unmitigated disaster as disgruntled policy owners facing cash calls, sued insurers in multiple class action lawsuits and individual litigation claiming the insurance companies had used unrealistic projections of future interest rates in their illustrations. The 1983 Life Insurance Investment Bill kind of reminds you of the repeal of the Glass Steagall Act on a smaller scale doesn't it?
Poignant Quote #3
"By the end of 1982, more than 15% of First Executive's portfolio was invested in the B- and BB-rated bonds known as junk bonds. Most of these bonds were issued by little-known companies". Ibid (emphasis ours)
Poignant Quote #4
In 1984, "the New York State Insurance Department fined FE's New York subsidiary $100,000 for not cooperating with examiners". Ibid
Poignant Quote #5
"We began discussing Executive Life’s problems in 1986, five years before the company failed... Weiss was not the only rating firm to express concerns about Executive Life. Although A. M. Best and Standard & Poor’s maintained high ratings on Executive Life for too long, Fitch Ratings (then Duff & Phelps) and Moody’s Investors Service assigned significantly lower ratings at an early stage. The problem was that Executive Life advertised the high ratings and ignored the lower ratings; few people became aware of the lower ratings" -Joseph Belth, Indiana University and author of the Insurance Forum " February 2005.
Poignant Quote #6
"In 1987, First Executive paid a $250,000 fine when Executive Life of New York pleaded guilty to violating eight sections of insurance law. It was the biggest fine ever imposed by the state on an insurance company. In addition, First Executive gave the subsidiary a $151.5 million cash infusion. Because of EL's risky investments, regulations called for it to have a higher reserve than most. In the 1987 probe, the New York regulatory agency rejected nearly all of EL-NY's surplus relief from reinsurance contracts because of a circular arrangement made with companies that had connections to FE and letters of credit backed by the company's own assets. Additionally, the company failed to receive regulatory approvals, and file certain forms; it took credit for some treaties that never were executed. The industry regulators contended that the company had been undercapitalized for three years". Ibid (emphasis ours)
Poignant Quote #7
"The junk bond market was falling apart and in 1987 junk bonds accounted for more than 40% of First Executive's assets Ibid (emphasis ours)
Poignant Quote #8
"In July 1989, First Executive was only able to buy half of the surplus relief reinsurance it was seeking..."Executive Life and Drexel agreed to pay $30 million to settle a class-action lawsuit. The suit involved 4,200 investors who charged that they had been cheated in a tax-shelter scheme. The transaction involved notes purchased by Drexel, later sold to EL, on interests originally purchased by Hollywood, California, businessman Gerald Schulman, in a series of fraudulent transactions, at 80% below their value" Ibid
"Earlier in the month (January 1990), the impending $460 million sale of the (Executive Life of) New York unit collapsed. The buyer was unable to arrange junk bond financing. Then, in February 1990, Drexel declared bankruptcy amid the growing turmoil of the junk bond market. About 45% of FE's assets were in junk bonds at that moment; junk bonds were trading at about 60% to 80% of their face value. Ibid (emphasis ours)
Poignant Quote #9
"...the status of Executive Life Insurance Company of New York is in such condition that the further transaction of business will be hazardous to its policyholders, its creditors and to the public" -from Order of Rehabilitation Supreme Court of the State of New York, County of Nassau, April 23, 1991
Poignant Quote #10
"In May (1991) the company's New York unit was fined $25,000 and reprimanded for "sloppy"" record keeping during the 1980s that prevented any accurate determination of company reserves". (emphasis ours). Read more: http://www.answers.com/topic/first-executive-corporation#ixzz1ORT6bL5U
Comment: Woop-de do! Why weren't they shut down earier? Why were crippled New Yorkers and others allowed to have their long term welfare dependent on an assignment of structured settlement obligatons to this entity by people who should have known better?
More comments:
1. Were you, or a loved one, sold, or convinced to accept, an Executive Life of New York structured settlement between 1982 and 1988? If so, you SHOULD be livid.
2. I am particularly interested in marketing materials and/or correspondence from anyone that failed to discuss the ELNY financial situation. If you were sold an Executive Life of New York structured annuity I would be interested in hearing from you.
3. While it is very possible that the agent or agency that placed you (or your client) into an Executive Life of New York structured settlement annuity is still active, it's also very important to get a handle on what sale practices took place and what has changed about those individuals', companies', and the general industry practice in the interim, at least from a historical perspective.
4. It would be interesting to see how much revenue did these insurance agencies and agents derive from selling structured settlement annuities with Executive Life Insurance Company of New York between 1982 and 1988?
5. Did your attorney retain a structured settlement consultant? If not, why not?
6. How many of the subject Executive Life Insurance Company of New York structured annuities still outstanding were written by structured settlement consultants or agencies retained by the plaintiffs?
7. If your structured settlement required Court approval, did your attorney address the company's precarious financial situation in his/her/its affirmation to the Court for approval of your settlement?
8. Did the defense or its insurer force its consultant on you, directly, or through its agent, not permit you to engage your own? While this is very rare in current industry practice, back in 1982-1988 it was possible. If so, what duty did they have to inform you of material facts about the precarious financial condition of Executive Life of New York? Did they owe you a duty of privity?
Indication of Industry Practice in 1982-1991 time frame?
The United States Ninth Circuit stated in its Weil lawsuit decision that "these appeals require us to decide whether consultants who advise tort plaintiffs on structured settlements have suffered antitrust injury when they can't get information about premiums and rating practices from, or serve as brokers to arrange annuities to fund structured settlements with, life insurance carriers because of an alleged boycott by life insurance carriers and brokers who specialize in arranging annuities in behalf of tort defendants".
The Ninth Circuit stated "The district court granted summary judgment for Life Carriers and Brokers on the footing that if their policy harmed anyone, it was tort plaintiffs, and that the only possible injury was depriving tort plaintiffs of a stronger negotiating position in settlement negotiations. Weil Ins. Agency, Inc. v. Manufacturers Life Ins. Co., 815 F.Supp. 1320 (N.D.Cal.1992).
see 39 F.3d 951
LEGAL ECONOMIC EVALUATIONS, INC., a California Corporation, Plaintiff-Appellant, v. METROPOLITAN LIFE INSURANCE COMPANY, et al., Defendants-Appellees. IBAR SETTLEMENT CO., Plaintiff-Appellant, v. METROPOLITAN LIFE INSURANCE COMPANY; Transamerica Occidental Life; Manufacturers Life; ML Settlement Services, Inc.; National Structured Settlements Trade, Defendants-Appellees. WEIL INSURANCE AGENCY, INC., a California Corporation dba Jerry C. Weil & Associates, Plaintiff-Appellant, v. MANUFACTURERS LIFE, et al., Defendants-Appellees.
Nos. 93-16007, 93-16028 and 93-16047.
United States Court of Appeals, Ninth Circuit.
Argued and Submitted Oct. 6, 1994. Decided Nov. 2, 1994.
On Duty of Privity...
Read Lyons v MMIA 286 A.D. 2d 711, 730 N.Y.S. 2d 345. where a New York Appellate Court agreed that insurer owed duty of privity to plaintiff pertaining to a structured settlement, which incidentally arose out of a 1987 medical malpractice settlement where the plaintiff was not advised by his or her own structured settlement consultant.
Comment: The Ninth Circuit's opined that" if their policy harmed anyone, it was tort plaintiffs, and that the only possible injury was depriving tort plaintiffs of a stronger negotiating position in settlement negotiations". Were the subject plaintiffs fully informed by Defendants, Insurers and their agents about Executive Life of New York's precarious financial condition from 1987-1991? If they had been represented by their own advisors would the annuities have been placed with Executive Life of New York?
Were the qualified assignments to First Executive or SAFE, the fault of the Defendants' policy, their insurers' policy. the Court system?
10. The ELNY situation highlights the fact that some qualified assignment companies CAN go bankrupt, even if insurance companies cannot, (see Insurance Company "Bankruptcy": Insurers CANNOT File Chapter 7 or Chapter 11 (With Few Exceptions) my blog post of July 23, 2010). It is therefore important to consider this when placing your clients into new structured settlements. This author believes that not all structured settlement annuity issuers have addressed this situation and should.
11. Errors and omissions coverage for insurance, including structured settlements, does not traditionally cover insolvencies.
Fast forward to 2007
The ELNY problem, if not fixed, would have left thousands of severely injured people and pensioners without their annuity payments. The problem – due to the failure of ELNY’s investments to match its liabilities – first became clear approximately five years ago but the prior administration’s slow response allowed the crisis to continue. - " BROKERING AN INDUSTRY-WIDE AGREEMENT IN PRINCIPLE TO SOLVE THELARGE-SCALE ELNY DEFICIT" New York LIquidation Bureau 2007 Annual Report p4 Download NYLB_2007_Year_End_Report[1] (emphasis ours)
"The resolution was possible because the insurance industry played a key role in the process. The plan provides for a cash infusion by the insurance industry into ELNY to allow every annuitant to continue to receive 100% of insured benefits and protection for the entire term of the annuity, some lasting more than 50 years" -Ibid p4
“It’s refreshing to find out that the government can really come through.”- annuity holder(New York Times, December 5, 2007, p.B5).
2009
The most recent audited financial statements were published July 28, 2010 and indicate that the Executive Life of New York estate had total admitted assets of $984,021,594 compared with total liabilities of $2,516,254,541as of December 31, 2009.
2010
On December 17, 2010 the New York State Supreme Court, County of Nassau, orders the New York State Insurance Department to prersent the court with a proposed order and plan of liquidation for Executive Life Insurance Company of New York by July 1, 2011.
Check out the Executive Life Insurance Company of New York featuring John Darer and Mark Wahlstrom from Legal Broadcast Network
BIG QUESTIONS:
1. What did "get paid to rate" rating agencies such as Standard & Poors rate Executive Life of New York in 1982-1988?
S&P and other rating agencies were sued by the California Insurance Commissioner [in relation to Executive lIfe (CA)], along with First Executive, Drexel, and the accounting firm of Deloitte & Touche, according to a February 28, 1992 New York Times piece
"In the late 1980s and early 1990s, every one of Wall Street’s leading rating agencies consistently gave large life and health insurers their top ratings — even as they themselves recognized the companies were taking on huge risks.
The end result was a catastrophe that should have forever taught them a lesson … but, unfortunately, has long been forgotten". Martin Weiss, Weiss Research The Great Bond Insurance Cover UpHow Wall Street Rating Agencies Helped Trap Six Million Americans in Failed Life Insurance Companies April 28, 2008
In his report Weiss opines that Executive Life and 2 other companies based their entire business plan on junk bonds. "The keys to their rapid growth was twofold: First, they had to hide the dangers of junk bonds from their customers. And second, they had to play on the faith people still had in the inherent safety of insurance". But he goes on to say that to make the scheme work, they needed two more elements: the cooperation of the Wall Street rating agencies and the blessing of the state insurance commissioners. (emphasis ours)
Then this is eerie "Like today’s rating agencies and regulators, they knew they were hiding the truth, but they rationalized it as a “public service” to prevent a negative reaction by investors. (emphasis ours) In reality, they were merely helping to create the conditions for the very panic they sought to avoid. One day, everything seemed to be just fine. Then the truth came out and all hell broke loose. Junk bonds went sour. Institutional investors in the insurers immediately demanded their money back. Insurance companies ran out of cash to meet their demands. And their house of cards came crashing down". Bear in mind that Weiss' historical perpective on Executive Life was written a little over 4 months prior to the AIG and Lehman collapses in September 2008.
2. Did settlement consultants use these ratings to solicit annuity sales despite the available public information about ELNY's reckless behavior? How did they use them? The marketing material that Executive Life Insurance Company of New York annuitants may have in their files should be telling.
3. Did any agent soliciting structured annuities use the existence of guarantees that they were not legally permitted to do under New York Insurance Law, to convince an annuitant to go forward with Executive LIfe of New York when the annuitant expressed concern about the company's investments? If you have something in writing I would like to hear from you.
The few in the structured settlement industry who promote that which is illegal under most state insurance laws need only read Weiss' April 2008 piece to find out why I have been on their ass to rethink that strategy.
4. Who certified the actuarial calculations regarding the sufficiency of assets to liabilities from 1987 (when First Executive's assets were 40% junk bonds) to 1991? How about after the company was placed in rehabilitation?
Federal authorities have been investigating whether former Senator and VIce Presidential candidate John Edwards illegally spent 2008 campaign money to hide his relationship with videographer Rielle Hunter, and whether $1,000,000, provided by wealthy donors to keep her hidden, amounts to illegal contributions.
NBC reported on May 25, 2011 that the DOJ has been given the green light for criminal charges to be filed against Edwards.
John Edwards purported testimonial was used by a prominent plaintiff structured settlement firm to promote its services and solicit insurance business from about October 2005 until about July 2007. The firm included a bundler for campaign contributions for Edwards and the firm also was and is a large contributor to trial lawyer associations. The Structured Settlement Watchdog posited that Edwards' testimonial (that he gave the firm "his highest professional recommendation") was not credible since he ceased practicing as a trial lawyer 4 years before the subject firm was founded, so he could not have had the opportunity to evaluate the firm professionally.
In response to receiving continued solicitations for more contributions from the Edwards 2008 campaign, the structured settlement watchdog asked numerous times for Edwards clarification through various channels about why Edwards would give a testimonial to one firm in an industry he could have had no professional contact with. Just one firm when others in the same industry had given money to his campaign. It also appeared he gave no other firms such product or service endorsements, or they weren't promoting them in the same way. The structured settlement watchdog even gave Edwards the opportunty to gracefully say that the structured settlement firm was mistaken...that he was misquoted, but he didn't. This simply raised suspicion that the "testimonial" was a paid testimonial. In other words "you're good because you paid my campaign $xx,xxx". This made sense because, at the time, the structured settlement firm in question heavily used its contributions to trial lawyer associations in its printed advertising to solicit insurance business.
This author understands, through a source at the time (who counted Edwards as a former client-from before Edwards became a Senator) that all hell broke loose at the Chicago annual meeting of the AAJ that year. We understand the structured settlement firm struggled to keep the "testimonial" despite pressure from trial lawyers loyal to Edwards. Eventually the entire testimonial page was removed from the firm's website, not just the "testimonial" of John Edwards. It was very very odd.
Pardon me while I rant for a bit off topic...
David Callahan at The Huffington Post questions why the DOJ should waste its time with John Edwards, when there are bigger fish to fry. I say they should "do" John Edwards in what ever size "frying pan" it takes. As a gourmand, I will attest that the Southerners certainly know how to fry a fish. This was a guy who (as we all came to learn) falsely promoted himself as a wholesome family man while soliciting money from millions of voters, concurrent with having an illicit affair and fathering a child. And then it appears that there was an attempt to cover up.
This country needs to make examples to restore faith in a system that promotes glorification of the errant acts of the likes of Lindsay Lohan, Paris HIlton, Joey Buttafuoco (whose "celebrity" stemmed from an illicit affair with a young girl who ended up shooting his wife). Granted every human being has frailties. But I'm personally sick of the media more concerned about what dress Lindsay wore to Court, than the piss poor example that she's setting for the youth of this country. You would think she was that lost little girl in Schindler's List, the only one in color who stood out in a chaotic black and white screen image. Jared Loughner is not fit to stand trial despite pumping bullets into the head of a US congresswoman and killing several others with dozens of witnesses.
The image of the corrupt politician has endured for centuries. NBC reports that the Feds are insisting that Edwards cops to a felony, but his friends doubt he will do that. So let the games begin. The popcorn is ready.
"Wade Blogs" gained more ground on Derek Jeter in the Road to 3,000 as he stroked 3 blog "hits" on Wenesday while the Yankees' captain went 1 for 3 as the Yanks topped the Blue Jays and Mariano Rivera reached the 1,000 appearance mark.
The latest standings
Derek Jeter 2,976 hits
John Darer (a/k/a "Wade Blogs") 2,934 blog posts
John Darer is President of 4structures.com, LLC, a Stamford, Connecticut based structured settlement and settlement planning company and author of the structured settlement industry's most widely read website (as measured by Alexa). 4structures.com, LLC which will donate $1,000 to Derek Jeter's Turn 2 Foundation, Inc. if Jeter gets 3,000 hits before "Wade Blogs" reaches 3,000 blog posts. Darer is a lifelong Yankees fan.
In other news we salute Major League baseball for masterfully capitalizingon the "double entendre" with its headline "MLB Looks into Colon procedure"
A question befitting the late "Archibald Bunker" has come across my desk today. "If i feel like i was a benefictionary (sic) on a life insurance claim but have not heard from the insurance company what do i need to do" Download
If the insured is still living, you will not be able to receive this information, unless the insured has given written authorization that the life insurer can release this information to you. If an insured has died, the beneficiary must contact the life insurance company and file a claim for the insurance money. If you are a valid beneficiary the insurer will need to confirm your identity.
Alot of life insurance goes unclaimed. Calling it a "conservative" estimate, Florida Insurance Commissioner Kevin McCarty said 40 of the largest U.S. life insurance companies may owe policy beneficiaries more than $1 billion, according to a May 19, 2011 article in MSN/Money.
If a beneficiary cannot be found the property is subject to being escheated, which is the forfeit of all property (including bank accounts) to the state treasury if it appears certain that there are no heirs, descendants or named beneficiaries to take the property upon the death of the last known owner.
Life insurers generally use the Death Master File, a Social Security Administration list of those who have died, but that has come under investigation is some parts. Usually it's the beneficiary's obligation to find the insurance company after an insured person dies. But that could change now that regulators are aware that some insurers may have used the Death Master File to figure out when to stop paying on annuities, but not when to make payouts to life insurance beneficiaries.
If you have a life insurance it is important to keep the life insurance policy or policies in safe place (but not in a safe deposit box!), so that your loved ones will not have to rummage through your papers at a time of grief.
What is a Structured Settlement? What You Need to Know Structured settlements and what you need to know about them including a helpful introductory video featuring A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer of 4structures.com LLC
How Do Structured Settlements Work? How Structured Settlements Work How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
Rated Ages and Structured Settlement Cost Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
Top Structured Settlement Annuity Companies 2024 Which life insurance companies issue structured settlement annuities in 2024? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information. Last updated June 14, 2024
Treasury Funded Structured Settlements Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
Compare Structured Settlement IRR to Other Settlement Alternatives Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
Structured Settlement Payments | Types of Structured Settlements 2024 Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
Structured Attorney Fees for Tax Deferral for Attorney Contingency Fees Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as capped or uncapped index linked structured settlement annuities where payments are adjusted based on upside changes in the S&P 500 or another index, Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team in 2024.
Structured Settlement Annuity Company Customer Service Phone Numbers Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life), oran annuity issuer has changed its name and you're trying to track them down. Here you go! The list is regularly updated. Last updated May 20, 2024.
Structured Settlement Quote Lock-Ins | What You Need To Know What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
What Are Structured Settlement Annuities? Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
History of Structured Settlements Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
What Are Market Based Structured Settlements? Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that:
1. Can afford to take some market risk
2. Have discretionary settlement dollars.
Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
Structured Settlements and Longevity Risk| What Are the Odds? Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can include one or more customized payment streams and types.
Firmwide Qualified Settlement Funds Debunked Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.
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STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News, Information and Commentary, John Darer Reviews, Settlement Planning News and Financial Solutions for over 18 years,
with a stable readership that seeks credible structured settlement information, John Darer Reviews, commentary and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers, settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties.
4structures.com LLC established this structured settlement blog in 2005. John Darer ®, CLU ChFC MSSC CeFT® RSP CLTC, President of 4structures.com, located in Stamford, CT 06902. John Darer is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. He holds insurance licenses in 45 states, has 41 years financial services experience and 31 years in the structured settlements and settlement planning space.
In his capacity as a investigative journalist and commentator, and professionally, John Darer passionately believes that shining the light on a business practice is both healthy and newsworthy. It is in the best interest of injury victims, their families and their legal advisers, that the settlement planning discussion involve those that are properly trained in the topic, properly informed on the topic and, with respect to structured settlements, properly licensed and/or appointed. It has significant instructional and deterrent value to other practitioners and firms as well as those who may be caught in the cross hairs.
WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful.
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Last updated July 10, 2024
New York City Structured Settlement Experts Bridge building settlement consultants who collaborate with clients using a humanistic process, providing creative and reliable advice and support for litigating parties and their lawyers with matters in Courts throughout the New York City metropolitan area
New York Structured Settlement Expert Whether you're at the crossroads of the world or the crossroads of your life, structured settlements provide stability for when life is at a crossroad. Call 888-325-8640
New York Settlement Planning Expert for NY Attorneys and Residents - YouTube New York settlement expert John Darer's comprehensive approach to Settlement Planning helps New York personal injury lawyers and their clients move through the financial transition resulting from a major life event. CPLR Articles 50A and 50B expertise for New York lawyers
New York Structured Settlement Expert Useful information and ideas about structured settlements, settlement planning and litigation recovery managements for New York residents, New York Lawyers and New York judges
New York General Obligations Law §5-1702 The New York Structured Settlement Protection Act imposes mandatory requirements on the defendant or the defendant's legal representative when a structured settlement is created (as part of the resolution of a case)
Structured Settlements v Structured Judgments Often confused by writers on the Internet, but there IS a difference between structured settlements and structured judgments under CPLR Articles 50A or 50B. Find out more...
Connecticut Structured Settlement Experts 4structures.com LLC is based in Stamford CT and Connectict works with clients all over CT, Greenwich, Stamford, Darien, New Canaan, New Haven, Hartford, West Hartford, West Haven, Torrington, Danbury, Wilton, Ridgefield, Norwalk, Midletown, New London, Westport, Oxford, Stratford, Old Greenwich, Stafford, Storrs, Groton
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"I wanted to send you this email to say Happy New Year to you and your family. May God continue to bless you. I am grateful that I had the opportunity to meet you on the phone. I truly thank you for introducing me and my son, (redacted) to (lawyer). It is people like you that God put in the path of my son situation. Thanks a million times! {original on file] 1-2-2015
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"time" was NEVER an issue!"-Andrew S 8/18/2012
" I wish there were more like you" JG 9-15-2014
In my opinion, John Darer is an excellent consumer advocate in the insurance industry. When I had no one else to turn to after running up against the stone walls of these giant insurance company, John Darer used hours of his own time to investigate my situation. Not only is this an invaluable service to me the consumer but it is also of great value to the insurance industry by providing them consumer feed-back. This allows the insurance companies to correct their faults and move toward greater transparency which improves the overall public image of the insurance industry as a whole" JW 9/4/2014
John, Keep fighting the fight. -NASP member 12-4-2013
John...Thank you for your professional advice-Brandon 11-13-2013
"...Thanks to Mr. Darer's blog and personal pointers I was able to obtain a fair price for the sale of client structured settlement. Therefore, if one has no choice, but to sell their settlement educate yourself first before selling start by reading John's blog" Mr P. 11/17/2012
"I always appreciate when he (John Darer) keeps us informed on regs and rules. No one does it better"- structured settlement industry colleague and reader RY 7/26/2012
"Amen - and continued thanks for your vigilance, John"- RL 8/18/2011
"Thanks for writing these great blogs on your site John! As an individual investor I have learned so much about the secondary market (for annuities, structured settlements, lottery payments, etc.) from your blogs and video series!!!" (6/5/2011)
I have found the intelligent and forthright information on your site a godsend. So much so I have tried in a small way to pass on my findings to others. Please keep up the good work and enhance your well deserved reputation as the authority on this subject- Mike 4/29/2011
John -
I can't thank you enough for bringing this to my attention. In my wildest dreams... PJ-May 12, 2011
John, I love reading your blog! Not only have I found very useful information there, but the comedy is much appreciated! Thanks for talking about "the big pink elephant in the living room" that everyone else ignores!
Thank you again for your help via phone and blog! I really needed to hear what you had to say today! BM 11/23/2010
John—this (video published 11/2010) is a well done piece. I like the way you always stick to the facts-AM
What a wonderful blog you have! I have completely enjoyed reading some of your posts (4/16/2010)
Thank you so very much for discussing my concerns about Symetra, my annuity company. I am amazed that PI attorneys as well as a settlement broker in San Diego, could not answer the simplest questions I had regarding the Safeco/Symetra issue. Your blog/web site is most interesting and informative, and I am grateful you have take on the "watchdog" role!
Thank you so much again (3/25/10)
"Keep up the good work exposing abuses in our industry - our future depends on clients being properly advised."-CD
Just checked out your blog and loved it. Keep up the good and balanced work-DL
"...we have never met but I thoroughly enjoy your web site and blog - excellent material…-PB
"I enjoy your website and its content. Informative and well written"-JC
I heard a radio ad for the Peachtree Settlement Fund as I was driving into work this morning. (San Francisco Bay area.) I decided to check it out on the Internet and came upon your blog. Thank you very much. I do not have a “structured” settlement,
"All the others that I had emailed & have seen on the net were "cash now types" & have no concern of me & just are looking for my $$$. When I came across your site & blog I realized that u are an upstanding guy & are not like others. That's why I emailed"
This was Great. Right On Point-TS
"Other Than John Darer No One Seems To Be Doing Anything"-J
Thanks for your help and also for the good work you do on behalf of our industry-L
"Thank you for being the inspiration that you are and for being a strong advocate for integrity in our business"-KL
"I Commend You On Your Effort To Make a Difference!" -R
"He is a fabulous writer who has a great passion for the structured settlement industry. I commend him on the passion he invokes when he writes on his blog listed above. That type of commitment and passion is hard to find and is rare in this world" -AC
Structured Settlement Best Practices Corner
New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
When it comes to settlement documents it is the ultimate responsibility of the lawyers or claims adjusters who receive input concerning the structured settlement aspects of the documents to actually read the entire document, exercise independent thought and advise their clients properly
Be aware that financial advisors use of testimonials is prohibited or restricted
Most states require that Testimonials represent the CURRENT opinion of the person who made the testimonial. Be prepared to back it up.
Number of States That Prohibit Payment of QSF expenses by licensed agents and brokers
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Jay J. Sangerman, PLLC A New York and Florida based AV rated estate planning law practice with an emphasis in Supplemental Needs Trusts, which assists attorneys in efficient case settlement though the use of Supplemental Needs Trusts and Special Needs Trusts; and Elder Law
Day Pitney LLP - People - Keith Bradoc Gallant Brad's practice includes traditional trust and estate planning and administration, special needs and disabilities planning, planning for same-sex couples and their families, planning for incapacity, and all types of probate litigation.
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The John Darer® authored Structured Settlements 4Real® blog is the most prolific structured settlement blog, providing information, commentary and opinion since 2005 with over 5,420 blog posts, and counting!
Why Take a Structured Settlement?
A structured settlement offers guaranteed financial security to personal injury victims, wrongful death survivors and their families. A structured settlement involves a customized stream of payments, provides long-term stable tax-free income, for a period of years or a lifetime. Unlike other income annuities. a structured settlement annuity can have multiple payment streams to address multiple needs in a single contract.
London Market Structured Settlements Experts Bridge building settlement consulting using a humanistic process, providing creative and reliable support for London Market Insurers, Lloyds Syndicates, Claims Professionals and Lawyers
New York Structured Settlement Experts Bridge building settlement consultants who collaborate with clients using a humanistic process, providing creative and reliable advice and support for litigating parties and their lawyers.
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