by Structured Settlement Watchdog
Structured settlement lead generator websites are like dandelions. When the wind blows they spring up everywhere, figuratively turning what should be an easy online search into a lawn strangled by dandelions and crab grass.
AnnuityExpertAdvice.com is the latest website dandelion lurking on the fringes of the annuity industry and they are clearly no expert in annuities or structured settlements.
AnnuityExpertAdvice.Com flops poorly articulate the scam label " Secondary Market Annuity"
"Ever see television commercials about getting cash now for your annuity? This is called Secondary Market Annuities or SMAs. Basically, a secondary market annuity is the selling of your current income annuity (immediate annuity, deferred income annuity, structured settlements, lottery payouts) at a heavily discounted rate to a 3rd party company in exchange for a lump sum of cash. That 3rd party company will then pocket annuity income distributions as a long term investment".
- The process that was erroneously described with reference to a structured settlement, is called a structured settlement factoring transaction.
- A structured settlement factoring transaction is not an annuity, it is a term that appears in the Internal Revenue Code at IRC §5891 (c)(3)(A) as, in general, "a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration".
- The sale of structured settlement payment rights DOES NOT involve transfer of annuity contract ownership.
- This sort of thing was not lost on the National Association of Insurance Commissioners (NAIC) which in December 2018 stated that factored structured settlement payment streams are neither annuities nor insurance products.
- The NAIC further said in Statutory Issue Paper 160, that insurers who buy factored structured settlement payment streams may not account for these assets as annuities or insurance products in their financial reports.
AnnuityExpertAdvice.Com is a Stunning Example of Clueless. by Calling SPIAs, DIAs, Structured Settlements and Lottery Annuities Examples of Secondary Market "Annuities"
- Let's start with the fact that a Secondary Market Annuity is not an annuity. It is a scam label used by merchants to move product.
- Immediate Annuities (SPIA) and Deferred Income Annuities (DIA), Structured Settlement Annuities (SSA) and Lottery Annuities are insurance products issued by insurance companies. They are not factored structured settlement payment streams or derivatives.
- The insurance companies themselves have to be licensed and anyone selling the products must be licensed where the product is being sold.
- Buyers of factored structured settlement payment streams do not enjoy the same statutory protections that people who buy legitimate annuities do.