With its astounding level of inaccuracy, Corona Capital justifies yet another reason for regulation of structured settlement factoring companies and companies marketing structured settlement derivatives to investors. Corona Capital is another company selling structured settlement derivatives to investors using the secondary market annuity scam label and by its actions is making a mockery of insurance laws regulating dissemination of details of state guarantee funds.
As of 8am this morning, and for at least the last 3 years, Corona Capital has been marketing structured settlement derivatives to investors using these reckless and inaccurately statements:
- that you buy "secondary market annuities" from a life insurance company
- that every life insurance company is regulated by a State Guaranty Fund
Why Corona Capital is Wrong
Facts about " Secondary Market Annuities"
- A "secondary market annuity" is not an annuity
- Investors do not buy "secondary market annuities" from a life insurance company
- Life insurance companies do not issue "secondary market annuities".
- A "secondary market annuity" is a scam label placed on structured settlement derivatives by marketers to capitalize on the cachet of annuities even though they are not annuities. One actor in the market place has said that the term makes it easier to understand.
- A 'secondary market annuity" is the product of a negotiation of the sale of structured settlement payment rights for pennies on the dollar.
- Life insurance companies are not regulated by a State Guaranty Fund. Life Insurance companies are subject to insurance laws and primarily regulated by state insurance regulators. They are further regulated by a multiplicity of state and federal laws governing business conduct.
If what Corona Capital is selling was really an annuity, Corona Capital would need to be licensed and by posting the names, protection limits and phone numbers, would be violating the laws of many states which prohibit the advertising of the existence of such statutory protection.
Are Insurance Regulators Alert?
Insurance regulators in Delaware and elsewhere and board members of the NOLHGA should be made aware of the mockery that the structured settlement secondary and tertiary markets make of their rules in their approach to investors in products falsely claimed to be insurance products. Some of the actors in the market place actually possess insurance licenses and they're still doing it!