New York attorneys should be aware that the Allstate Insurance Company approved list for structured annuity issuers includes just three companies:
- Allstate Life Insurance Company of New York;
- John Hancock Life Insurance Company of New York; and
- Metropolitan Life Insurance Company.
The list for structured attorney fees is even shorter, just Allstate Life Insurance Company of New York, by way of a non qualified assignment through the Allstate International Assignments, Ltd.
Allstate International Assignments, Ltd. is a Barbados based facility that is the fulcrum for Allstate's innovative deferred payment programs for non qualified cash flows from employment, divorce and other no physical injury settlements. It also a tactical facility for structured celebrity endorsement fees, structured installment sales, structured deferred commission payments to real estate brokers and structured deferred bonus payments to investors in oil and gas lease programs.
Obligations assigned to Allstate International Assignments, Ltd. are subject to a guarantee or Agreement to Pay by Allstate Life Insurance Company
It is important to understand that Allstate International Assignments, Ltd. is a separate legal entity from Allstate Life Insurance Company of New York and Allstate Life Insurance Company. Neither Allstate Life Insurance Company nor Allstate Life Insurance Company of New York currently give any slack to the time it takes for international check clearing to Allstate Insurance Company and charge a lock in fee if a quote is locked in with in excess of 30 days from the lock in date. The situation could simply be rectified by Allstate Insurance Company wiring the funds to Allstate International Assignments, Ltd, however my understanding from speaking with an Allstate rep today is that it will not do so.
As I've previously stated to readers in other posts (e.g. below), it is the paying insurer's prerogative (1)how it will make its offers; and (2) which life insurance companies it will permit for structured annuities on cases it resolves on behalf of its insureds. Yet I also see a certain sense of unintended injustice where a company is ostensibly saving an international wire fee while its affiliated company charges a lock in fee that exceeds it.
While the contentious nature of litigation may sometimes create the sense of not wanting to do the attorney any favors the opposite may be true as well. Given its status as one of the leading writers of automobile , homeowners and other types of insurance, surely Allstate recognizes there is a cumulative effect that goes both ways.
MetLife has a viable solution in its MetLife Insurance Company of Connecticut reinsurance product. If MetLife Insurance Company of Connecticut were to be permitted to be used, it would save Allstate Insurance Company an international wire fee and benefit the attorney because MetLife has a more liberal free lock in window. (90 days). Alternatively, in my opinion, Allstate should consider liberalizing its free lock-in window.
**Note that outside of New York, Allstate Life Insurance Company and John Hancock Life Insurance Company (U.S.A.) are substituted for their New York counterparts. At the time of posting Metropolitan Life Insurance Comapny is licensed in all 50 states.
Related general reading on structured settlements approved lists