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January 26, 2017

Why Does New York Personal Injury Lawyer Imply it's OK to Make Illegal Structured Settlement Rebates to Plaintiffs?

by Structured Settlement Watchdog®

In a July 22, 2015 still published  article, John H. Fisher, a plaintiff's personal injury lawyer implies that it is OK for a licensed insurance broker or agent to commit an illegal act under New York state law. it's just preposterous.   Here's what "John' says on Ultimateinjurylaw(dot)com, a website that Whois records say is registered to Fisher.

'Remember, the 4% commission payable to the settlement structured broker is negotiable.  You may be able to cut the commission in half, but even if you can’t, you should always use a structured settlement broker who only represents the interests of injury victims'   John H Fisher Plaintiff Lawyer, Kingston New York

In New York, a licensed insurance agent or broker, including a structured settlement broker or settlement planner, cannot rebate commissions or enlist the help of anyone to do, such as tying contributions to a trial lawyer association or use the "extra commission" to advertise " no cost qualified settlement funds"  See Opinion of Office of General Counsel New York State Insurance Department September 24, 2007. Thus rebating of commissions is illegal under New York state insurance law. Indeed it is illegal under the laws of most states.  However advisable, whether or not a plaintiff lawyer chooses to involve a structured settlement expert or settlement planner is their choice, surely the legal profession's canons of ethics do not permit lawyers to solicit and/or  encourage others to commit or solicit illegal acts.
 
Commissions are set by the annuity issuer and are part of product filings with the State of New York Department of Financial Services. Where reductions have been allowed, it has only been in special circumstances, like 9-11 victims families entering  into structured settlements with the Victims Compensation Fund, or the more recent settlements with the families of Marines killed in the Beirut barracks bombing in Lebanon in the 1983, it required a special legislative exception.
 
It's ironic that Mr. Fisher opines that "structured settlement annuities suck' yet endorses structured settlement brokers on his websites.  One hopes that the unlawful act of rebating that Mr. Fisher is implying, does not relate to the brokers who he endorses (something I would personally find hard to believe) who are all fine members of the National Structured Settlements Trade Association.
 
It is not uncommon for both sides of negotiations to bring in a settlement expert.
 
 
 

 

Posted at 12:05 PM in Kingston NY Structured Settlements, New York State Trial Lawyers Association, Settlement Planning Ethics, Settlement Planning Profession, Structured Settlement Broker Business Practices, Structured Settlement FAQ, Structured Settlement Watchdog® |

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Guide to Structured Settlements 2023

  • 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 2023 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].
  • Structured Settlement Annuity Companies 2023
    Which life insurance companies issue structured settlement annuities going into 2023? 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.
  • 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
    Ways You Can Structure Your Settlement Payments. 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 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 the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. 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.
  • 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 for 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) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last updated January 23, 2023.
  • 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.
  • iStructure |Uncapped Fixed Index Structured Settlement Annuity
    iStructure is an innovative game changing fixed index structured settlement annuity for plaintiffs or attorneys. with an intermediate to long term horizon

Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • 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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