by Structured Settlement Watchdog
My word! There are many more steps to creating an intellectually dishonest Secondary Market "Annuity" than a applying for a legitimate annuity. Setting aside the immutable fact that the National Association of Insurance Commissioners (NAIC) does not recognize acquired structured settlement payment rights as an annuity or insurance product [see Statutory Issue Paper No. 160, finalized April 6, 2019], the fact that the following chart (sourced from EquityNet for critical commentary 2/16/2022) shows 13 steps for a single deal, should erase any lingering doubts.
If you are a financial planner or settlement planner who recommended that your client buy and you subsequently sold them factored structured settlement payment streams that you told them was an annuity, you may want to change your underwear now. When the layers of the onion are eventually pulled back you may find that many who advised investors to buy these instruments did not fully understand the product they recommended and/or sold to their clients. Did they do enough?
One wonders what a similar chart for the DeAngelo Simmons, Atlantic Solutions, Paul Millsap and Michael Vick deals would look like, and whether or not investors would have still gone through with the transactions they did or would have taken a pass.