by John Darer® CLU ChFC MSSC RSP CLTC
“Don’t put all your eggs in one basket” is what people have been taught for over 460 years. Yet between 1983 and 1989 1,500* injury victims shunned larger, more established companies, even prudent diversification, to "put all their structured settlement money into one basket", an annuity issued by a single, relatively small, junk bond laden company, Executive Life Insurance Company of New York, also known by the acronym ELNY, which offered the highest rates. Whether they made the decision themselves, someone else did on their behalf, and/or they were given poor advice, those 1,500 injury victims are paying for it now. New York area structured settlement expert John Darer® explores this very touchy subject that underscores one of life’s most important financial lessons.
Insurers, Risk Retention Groups and Defendants who buy and hold structured settlements today should consider the merits of diversification of their risk on larger cases. *actually more than 1,500 "put all their eggs in one basket", the 1,500 are the ones who are due to experience shortfalls.