by John Darer® CLU ChFC MSSC CeFT® RSP CLTC
There are differences between qualified assignments in the Executive Life Insurance Company of New York (ELNY) era (1983-1989) and qualified assignments today.
Here are some of them:
- The majority of annuity issuers today provide wrap around guarantees of the qualified assignment company.
- Some holding companies guarantee the performance of the assignee. For example AGC Life Insurance Company on structured settlements funded by American General Life Insurance Company and United States Life Insurance Company in the City of New York structured annuities; or PacificLife Corp, where structured annuities issued by Pacific Life Insurance Company and Pacific Life and Annuity Company are used as a qualified funding asset".
- Some qualified assignment companies, like BHG Structured Settlements, offer a guarantee from a different insurer within the same family of companies [where Berkshire Hathaway Life of Nebraska and First Berkshire Hathaway Life Insurance Company are used as a qualified funding asset]
- Secured creditor protection is available with many companies (IRC Section 130 has allowed this since 1988)
- Model documents address the structured settlement secondary market an discharge of obligation by electronic deposit.
What is a Qualified Assignment?