by Structured Settlement Watchdog
The tertiary market has pounded more nails in the coffin of settlement planners' aspirations to bastardize the qualified assignment process using unqualified funding assets.
1. Secondary Market Annuities Explained The term Secondary Market Annuity(ies) “SMA” is an engineered name designed to more easily describe a Factored Structured Settlement “FSS”
A Secondary Market Annuity “SMA” is not an annuity at all. It is actually a Factored Structured Settlement, (FSS) whereby one is purchasing the rights to receive payments from a structured settlement that is funded by an annuity, and is not purchasing the annuity itself. The entity that issues the annuity (and therefore responsible to make such payments) is usually a highly rated insurance company. It is important to understand that while the payments are funded by annuities, FSS’s are not annuities
2. Unlike primary market (directly issued) fixed annuity products, your state guaranty association provides NO coverage for secondary market annuities (SMAs).
It is a completely unregulated industry. No licensing whatsoever is required in order to sell SMAs. That is the opinion of several of the largest marketers of the product. It is possible to have completely unregulated and inadequately trained individuals making claims and promises that may or may not be accurate. There is currently no regulatory body making sure things are handled in an appropriate way.
-Ken Nuss Annuity Advantage, Medford, Oregon
Hmmm, one really has to wonder about this investor solicitation
"These assets are life insurance products, guaranteed by the issuer, and in most states by the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA)". John T. Bair CrowFly LLC Director Buffalo NY January 2020