by Structured Settlement Watchdog
According to Nathaniel Pulsipher, a ‘secondary market annuity’ is a term used to describe the court-ordered right to receive payments backed by annuities issued in conjunction with structured settlements. The term ‘secondary market annuity’ may also be substituted with other commonly used terms such as factored structured settlement, structured settlement payment right, or assigned payments .
Pulsipher continues, "The term is not at all synonymous with or a relative of a derivative. “In finance, a derivative is a contract that derives its value from the performance of an underlying entity”. Practically speaking, says derivatives are usually securities contracts, and the underlying assets take a wide range of forms, from pork bellies to pesos. Prices and values of derivatives can swing widely and are dependent on a number of market forces and factors. Nice misdirection from a tertiary market SMA militant.
Of course a court-ordered right to receive a payment is not an annuity. That is crystal clear. The question is, is it a derivative of an annuity?
Says "Aunt" Merriam-Webster, the source that Genex Capital CEO Roger Proctor (a competitor of Pulsipher) hangs his hat on to attempt to justify the use of the term " annuity" to describe factored structured settlement payment streams: Derivative "something that is based on another source". So since it cannot be disputed that the buyer is not actually buying the annuity contract funding the payment stream they are buying it follows that the payments stream is based on another source (i.e the annuity)
Says Nate "Unfortunately, in the “Wrong” column are several misleading ‘derivative’ words propagated by questionable industry participants who add only confusion and misinformation to the marketplace".
But the use of the term " annuity" in connection with factored structured settlement payment streams in indisputably manufactured for marketing purposes
Says Nate: "During financial crisis of 2007–2008 a number of intermediaries began marketing structured settlement payment rights to financial advisors and individual investors. Various labels included the term “annuity”, such as in force annuities, secondary market annuity, secondary market income annuity and/or the acronym SMA or SMIA. Res Ipsa Loquitur. It's marketing double talk.
The industry has largely coalesced around the term ‘Secondary Market Annuity’ however none of the other terms using the word ‘annuity’ are incorrect or misleading, as “An annuity is a series of payments made at equal intervals.”
A Secondary Market Annuity “SMA” is not an annuity at all says Somerset Wealth, company that competed with Pulsipher's company.
As a fans of Shark Tank, its possible that there are a large number of people who have "coalesced" around the term "poo poo on a stick" to describe the notion that factored structured settlement payment streams are annuities.
Marketing National Association of Insurance Commissioners
Parallels With Food Labelling Ethics
“As consumers increasingly seeking out plant-based meat options, the Plant Based Foods Association is leading the way by promoting a labeling standard that suggests clear labeling terms that consumers understand,” said Michele Simon, PBFA’s executive director. As the industry leader in plant-based food advocacy, last year PBFA released voluntary labeling standards for plant-based milks.
PBFA’s meat alternative standards allow for references to the type of animal-meat (i.e. “meat, “chicken,” “hamburger,” etc.) and the form of the product (i.e. “nuggets,” “burger,” etc.) along with a qualifier that clearly indicates that the food is plant-based or vegetarian. These qualifiers include: “plant-based,” “vegan,” “meatless,” “meat-free,” “vegetarian,” “veggie,” “made from plants,” and other similar phrases With some moving to a plant based diet, there is increasing vegan and/or vegetarian parodies of common dishes.
Gardein Protein International, part of Conagra brands manufactures a line of Animal meat-free foods. The company offers chick'n mini sliders, Southwestern breakfast bowls with sau'sage , chick'n nuggets and so on.
An Annuityless Periodic Payment Investment or " APPI" Hmm, you could parody the Theme to the Partridge Family with the tagline " C'mon Get APPI".