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April 22, 2021

Structured Settlement History Lesson | When Was The Great Depression Again?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Something for your history buffs. Seen on the website of another settlement planning firm today:

"Most of the companies that issue structured settlement annuities have withstood the most dramatic financial events in United States history, including The Great Depression and the 2008 financial crisis. In fact, since 2008, no life insurance companies who issue structured settlement annuities have become insolvent".

The statement while technically true, is somewhat misleading because in 2013 Executive Life Insurance Company of New York was liquidated leaving a number of annuitants with less than the full amount of structured settlement payments promised.  The company was first taken over by the New York State Insurance Department in the early 1990s. Moreover, the implementation of Risk Based Capital standards in response to the Executive Life and other insolvencies in the 1980s and early 1990s, was an important regulatory tool designed to maintain solvency of insurance companies.

There are then listed a number of life insurance companies and their purported dates of establishment 

                                                    Purported                        Actual                

American General             N/A                                1960

Berkshire Hathaway          1919                               (see next three)

BHLN                                 N/A                                 1993

Columbia Insurance Co.      N/A                                 1977

National Indemnity Co.        N/A                                1940

Independent Life               N/A                                  2018

Metropolitan Life               1839                                1868*

Metropolitan Tower             N/A                                1982 

New York Life                    1870                                 1845*     

Pacific Life Insurance Co    1845                                 1868*

Pacific Life and Annuity       N/A                                  1982

Prudential                           N/A                                 1875*

United of Omaha                1868                                 1926* 

United States Life in CoNY  N/A                                  1850*

USAA Life                           N/A                                  1963                      

The Great Depression  August 1929-March 1933

Notes

  • Companies established prior to, and in business during, The Great Depression 6
  • Companies underwriting structured settlements today 13
  • Percentage of companies currently writing structures that were established prior to, and in business during The Great Depression 46.15%

N/A No purported date of establishment on the subject website and/or the insurer was omitted

Metropolitan Tower Life is the primary underwriting company for MetLife Structured Settlements today. It was established in 1982.

I think the truth is obvious. Res Ipsa Loquitur. More About the History of Structured Settlements

 

 

Posted at 03:03 PM in Misinformation About Structured Settlements, News About Structured Settlements, Structured Settlement History, Structured Settlement Industry News, Structured Settlement Information, Structured Settlement Watchdog® |

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Guide to Structured Settlements 2024

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  • What Are Structured Settlement Annuities?
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  • History of Structured Settlements
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
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