Insurance News Net appears to have blindly published a press release issued by DRB Capital LLC in its Annuity News section when it had absolutely nothing to do with annuities. Furthermore, Insurance News Net, by publishing that press release which has nothing to do with annuities, facilitates an illegitimate amalgamation of an honorable industry, whose members are insurance licensed, credentialed and work to providing long term financial security to disabled and bereaved individuals, with structured settlement factoring companies which are unlicensed and substantially unregulated in a corrupt industry. populated by a substantial number of what DRB Capital calls parasites in its own press releases, is unprofessional and intellectually dishonest at best. While the story had merit it did not belong in an " Annuity News" section.
In the regulated insurance industry , insurance commissioners have the power to fine, suspend or revoke licenses. There are consequences. The threat of losing your livelihood is an effective deterrent. Without such regulation and deterrent, the corrupt companies in the secondary market target, bait and victimize and in some case financially rape young adults, often from black and Hispanic communities.
It's a shame that many of the insurance and financial trade journals have become such rags when it comes to reporting about structured settlements. The consequences are consumer and investor confusion.
DRB Capital and the companies it calls "parasites" do not buy structured settlement annuities because they can't. They are not structured settlement companies. A structured settlement factoring company is a company that buys structured settlement payment rights and then either packages and securitizes them before selling to institutional investors, or sells them to individual investors. Those that sell to individual investors scam label them as annuities. The National Association of Insurance Commissioners (NAIC) published a statutory issue paper in December 2018 in which it was made abundantly clear that such investments are not insurance products or annuities.