by Structured Settlement Watchdog
Silvestrini states "That’s not the case with annuities, which are legally considered insurance products issued by insurance companies rather than banks. But that doesn’t mean customers are without protection. Instead of federal protection, individual states provide the protection similar to the FDIC.
Her post is purported to be fact checked and the post is denoted as " financially reviewed by Rubina K. Hossain CFP (and presumably the editorial staff at Annuity.org).
In a case of something coming back to bite you, Annuity.org has written about Secondary Market Annuities, the scam label that is used by merchants to entice investors to lay their money down to buy factored structured settlement payment streams. But the product that is scam labeled secondary market annuity is not an annuity according to a much higher authority than Annuity.org.
The National Association of Insurance commissioners in its Statutory Issue Paper No. 160, makes it clear that acquired structured settlement payment streams are neither annuities, nor an insurance product.
To sum up
- So Annuity.org claims that annuities are legally considered insurance products BUT, funnily enough claims that factored structured settlement payments streams are annuities.
- On October 1, 2020, Annuity.org made, published and continues to display a factually and logically false statement using the scam label Secondary Market Annuities, purporting that a secondary market annuity, or SMA, refers to a transaction in which the owner of an annuity, a structured settlement or lottery winnings chooses to sell his or her payments to a factoring company for an immediate lump-sum payout, often, at a discounted rate.
- The National Association of Insurance Commissioners says acquired structured settlement payment rights are neither insurance products nor annuities; Then there are a number of legal decisions too.
- Annuity.org, as one has come to expect, trips on its own shoelaces by asserting that annuities are legally considered insurance products while implying that something that is not an annuity is.
- Annuity.org's statement about "secondary market annuities" is also reckless, false and wholly misleading because (1) the qualified assignment company, not the payee, is generally the owner of a structured settlement annuity and as such, does not sell the annuity when a payee sells/transfers the right to receive specified structured settlement payments; (2) if (i) the annuity is not sold; (ii) only the rights to payments can be sold/transferred, and (iii) the merchant soliciting and selling the payments to investors via Receivables Purchase Agreement, is not an insurance company, the use of the term annuity to imply that factored structured settlement payments stream "is a legally considered insurance product", is a fraud.
Annuity.org has a longstanding relationship as a shill for CBC Settlement Funding of Conshohocken Pennsylvania. Annuity.org represents to consumers that its staff writers' work is fact checked or financially reviewed, although the jury is still out as far as I'm concerned.