by Structured Settlement Watchdog
American General Life Insurance Company, a structured settlement annuity issuer, has amended its General Agent's contract to state, in no uncertain terms, its position against Factoring and Secondary Market activities of its appointed general agents.
A copy of the relevant section of the contract was supplied to me today by a third party (see download below).
The new American General Life General Agent's contract states
"General Agent or any subordinate agent under its control, without the prior consent of (redacted) shall not directly or indirectly solicit, sell, service otherwise provide advice concerning factored,factoring or secondary market transactions in which a buyer or third party purchases the rights to receive future payments from a structured settlement annuity in return for a lump sum payment to the seller.
General Agent, or any subordinate agent under its control, will not directly or indirectly engage in any factored or secondary market transactions where a member company of (redacted)Inc. is either a defendant, liability insurer, or as a fixed life annuity issuer".
Download Structured Settlement Annuity General Agent Contract with Factoring Restriction (note, must scroll down when the Adobe document pops up)
Upon information and belief no other structured annuity issuer has such a clause in its general agency contracts.
It has recently come to light that Michael A Upchurch, CEO of Jacksonville, Florida based Delta Settlements, has ties to factoring company Rescue Capital, a company whose on-line advertising leads with the question "Why Wait?", concurrent with Delta Settlement's on-line solicitation seeking to place plaintiffs and plaintiff attorneys into (among other things) structured settlements, together with the message that it places $250 million (of plaintiff's and attorney's recoveries) into structured settlement annuities. Upon information and belief Delta Settlements is not appointed with American General, or its New York subsidiary and has not been for some time.