by Structured Settlement Watchdog
A 27 year old single employed Toms River New Jersey man proposed to enter into a Transfer Agreement and Addendum to Transfer Agreement ("collectively, the Transfer Agreement") with RSL Funding, which will receive an assignment of a portion of Payee's structured settlement payments as follows: One Hundred Sixty-Eight (168) monthly life-contingent payments each in the amount of $701.18 due beginning on June J, 2047 through and including May 1, 2061 (collectively, the ''Assigned Payments") under an annuity owned by Lincoln Assignment Corporation f/k/a Liberty Assignment Corporation and issued by Lincoln Life Assurance Company of Boston f/k/a Liberty Life Assurance Company of Boston.
Source: RSL Funding, LLC v Lincoln Life Assurance Company of Boston Superior Court of New Jersey County of Ocean OCN-L-000394-21 filed February 4, 2021
Proposed Structured Settlement Transfer Would See Seller Get $2,000 Up-Front and Monthly Payments for 60 months Starting in 36 years!
In exchange for the Assigned Payments, Payee (Seller) is expected to ultimately receive gross payments totaling $32,500.00, which is comprised of: (i) an initial lump sum payment of $2,000.00 (the "Initial Payment" as set out in the Disclosure Statement and Transfer Agreement) upon the entry of an Order by this court and pursuant to the terms and conditions set forth in the Transfer Agreement, payable by Transferee or its assignee, subject to Payee then still living; and (ii) a total of $30,000.00 payable, pursuant to the terms and conditions as set forth in the Transfer Agreement and Disclosure Statement (subject to Payee then being alive) by Transferee or its Assignee, consisting of conditional additional monthly ·payments of $500.00 each over sixty (60) months from June 20, 2056 and ending on May 20, 2061.
What Are Life Contingent Payments? What Are the Risks of Buying Life Contingent Structured Settlement Payments?
The payments being assigned under this transfer are life-contingent, meaning that they are only payable if the Payee is alive on the date the payments are made. Thus, the Payee and, upon approval of the proposed transfer, Transferee's assignee ("Assignee"), are at substantial risk of not receiving these monies especially because of the expected age of 67 when the payments end.
How Do Buyers Evaluate the Risk of Buying Life Contingent Structured Settlement Payments?
RSL says in the Verified Complaint that additional steps must be taken during the course of this transaction so that RSL and the Assignee may adequately evaluate the risks associated with the proposed life contingent transfer. Specifically, a medical evaluation or alternative underwriting of the Payee has been performed or is currently underway which are analogous to medical underwriting process performed by a life insurance company when considering issuing a life insurance policy. The Payee completed a medical questionnaire upon which RSL and the Assignee rely and the Payee has agreed to participate in further health screenings and medical testing, as appropriate.
The court filing states that a review by RSL of Payee's overall health and/or medical history at this stage reveals at least one issue of concern. Without going into specifics of Payee's health morbidities or medical history in a public filing, at Payee's request and in light of Payee's privacy, Payee's medical history and/or health-related issues directly affect Payee's mortality. Moreover, because the medical history and/or health-related issues directly and materially affect the likelihood of anyone realizing the full benefits of this proposed transfer for which the first of the Assigned Payments is not due until June 1, 2047 more than 26 years off In light of the high risks associated with this proposed transfer, RSL and Payee have agreed to the terms of this transaction as set forth herein.