Capital Markets and Insurance Claims Feed

February 01, 2009

Life Insurer Capital and Surplus Reductions A No Go-NAIC

The National Association of Insurance Commissioners (NAIC), representing regulators in all U.S. states and territories, reached a decision last Thursday after nearly three months of deliberation NOT  to LOOSEN life insurers' capital and surplus requirements.

State insurance regulators use time-tested tools to protect consumers and help maintain a solvent and competitive marketplace,” NAIC President Roger Sevigny (of New Hampshire) said. “Today’s vote reflects our belief that it is not appropriate to make emergency, permanent industry-wide changes for which the need has not been demonstrated

NAIC did not rule out taking up the matter again in the future.

NAIC Press Release January 29, 2009

NAIC Web Site

Posted at 06:46 PM in Capital and Surplus Requirements, Capital Markets, Capital Markets and Insurance Claims, Capital Markets and Structured Settlements, Capital Markets and Tort Victims, Capital Markets and Trial Lawyers, Financial Protection, Life Insurance | | Comments (0) | TrackBack (0)

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August 26, 2008

"The Fund's Performance Always Looked Pretty Until Someone Wanted To Redeem"

"The fund's performance always looked good on paper until someone wanted to redeem," said one investor in the Sagecrest II hedge fund in a recent email to The New York Post. "Then you're told there isn't enough cash and the 'value' assigned to the fund is difficult to determine".

How would you like that as a testimonial to your firm's ability to make money?

Sagecrest II promised investors lofty returns backed by art, real estate and "structured settlement loans" and then ran into liquidity problems which it blames on the Deutsche Bank nut vice. Deutsche Bank  is a major participant in the financing behind structured settlement factoring deals.

We certainly know that the structured settlement (payment rights) assets aren't what is giving Sagecrest trouble. The factoring industry has been making bloated returns at the expense of tort victims' conservative long term security for some time. John Calamari, CFO of JG Wentworth has stated "It (structured settlement) is the perfect product for pensions, insurance companies and big banks." See "Squidward on Securitizations of Structured Settlements"

Sagecrest II, LLC,a hedge fund founded by Philip and Allan Milton, filed for Chapter 11 bankruptcy protection on August 17, 2008.

The bankruptcy case is SageCrest II LLC, 08-50755, U.S. Bankruptcy Court, District of Connecticut (Bridgeport). The Windmill lawsuit is In re Wood Creek Capital M v. SageCrest II LLC, 08-50075, Superior Court, Stamford, Connecticut.

"Govern well thy appetite, lest Sin Surprise thee, and her black attendant Death"  John Milton




Posted at 01:30 PM in Capital Markets and Insurance Claims, Capital Markets and Structured Settlements, Structured Settlement Factoring | | Comments (0)

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August 17, 2008

Structured Settlement Annuity Companies Stand The Test Of Time

by John Darer® CLU ChFC MSSC RSP CLTC

A.M. Best Company has been issuing financial strength ratings for 102 years-over a century! These financial strength ratings represent A.M. Best's opinion concerning the ability of individual insurance companies to pay claims on the the policies of insurance they have written.

Claims paying ability is something that should be of prime importance to tort victims receiving or contemplating structured settlements, their lawyers, and anyone owning or contemplating the purchase of life insurance, disability insurance, long term care insurance, annuities, medical insurance or accepting a payment stream involving any non qualified assignment covering a long term payment obligation like structured sales, structured celebrity endorsements, structured attorney fees, divorce structured settlements, employment structured settlements or environmental structured settlements

The July issue of Best's Review named 48 property and casualty insurers and 15 life and health insurers who have maintained a Best's Financial Strength rating of A (Excellent) or better for at a least 75 years. A number of these companies issue structured settlement annuity policies, or are former issuers of structured settlement annuities.

75 years of AM Best "A" (Excellent) or better

  • Aviva Life and Annuity (and predecessors)
  • John Hancock Life Insurance Company
  • Genworth Life and Annuity (and predecessors-former structured annuity issuer)
  • Metropolitan Life Insurance Company
  • New York Life Insurance Company
  • The Prudential Insurance Company of America

Best's ALSO lists companies with:

50 years of AM Best "A" (Excellent) or better

  • American General
  • American Home Assurance Company (one of AIG structured settlements qualified assignee)
  • National Union Fire Insurance Company of Pittsburgh, PA (one of AIG structured settlements qualified assignee)
  • Hartford Life Insurance Company
  • Canada Life Assurance Company (former structured annuity issuer)
  • Liberty Life
  • Massachusetts Mutual Life Insurance Company (former structured annuity issuer)
  • Transamerica Occidental Life (AEGON structured settlements-former structured annuity issuer)
  • United of Omaha (former structured annuity issuer)

In these challenging financial times the aforementioned information is important. To put things in perspective, in the 75 years since the bottom of The Great Depression, a number of dramatic world events have occurred

  • World War II
  • Korean War
  • Suez Crisis
  • Kennedy Assassination
  • Six Day War
  • Cuban Missile Crisis
  • Vietnam War
  • 1970s Terrorism
  • Yom Kippur War and the 1973 Oil Crisis
  • Mini-Recessions of 1980 and Recession of 1981-1982
  • Oil crises of 1979, 1990 and 2008
  • AIDS pandemic 1981+
  • Stock Market Crash of 1987
  • US Recession 1990-1992/ Global 1990-1993
  • Gulf War
  • Global Recession 1998
  • 1997 Asian Financial Crisis
  • 1998 Russian Financial Crisis
  • 9-11
  • Global Recession 2001-2002
  • 7-7
  • Wars on Terror/ Iraqi Freedom Iraq & Afghanistan War

The following numbers, from Best's Review, illustrate that these structured settlement annuity companies have not only have stood the test of time to pay their claims, but they have experienced long term growth despite having had to navigate turbulent economic times over many years:

Assets in 1928

  • Metropolitan Life Insurance Company  $2.3B
  • New York Life  $1.4B
  • Prudential Insurance Company of America  1.78B

Assets year end 2007

  • Metropolitan Life Insurance Company  $297.46B
  • New York Life  $122.75B
  • Prudential Insurance Company of America  $252B

Posted at 05:13 PM in Albany New York Structured Settlements, Bronx New York Structured Settlements, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, Capital Markets and Insurance Claims, Capital Markets and Structured Settlements, Capital Markets and Tort Victims, Financial Literacy, Financial Protection, Financial Ratings Agencies, Genworth Customer Service, John Hancock Life Insurance/ John Hancock Life Insurance Co of NY, Liberty Mutual, Long Island NY Structured Settlements, Missouri Structured Settlements, NC Structured Settlements, New Jersey Structured Settlements, New Orleans Louisiana Structured Settlements, New York Life Insurance Co. Structured Settlements, New York Personal Injury, New York Structured Settlements, Newburgh Structured Settlements, NH structured settlements, NJ Structured Settlements, NYC Structured Settlements, Oklahoma Structured Settlements, Palm Beach Structured Settlements, Philadelphia PA Structured Settlements, Plaintiff Attorney Settlement Issues, Prudential Structured Settlements, Rhode Island Structured Settlements, Rochester Structured Settlements, San Francisco Structured Settlements, South Carolina Structured Settlements, St. Louis Structured Settlements, Structured Annuity, Structured Annuity Company, Structured Annuity Issuer, Structured Settlement Annuity, Structured Settlement Industry News, Structured Settlements in Georgia, Structured Settlements in Illinois, Structured Settlements in Kentucky, Structured Settlements in Maryland, Structured Settlements in Miami Florida area, Tulsa Structured Settlements, TX structured settlements, VA Structured Settlements, West Virginia Structured Settlements, WV Structured Settlements | | Comments (0)

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Guide to Structured Settlements 2025

  • What is a Structured Settlement? What You Need to Know
    Structured settlements and what you need to know about them including a helpful introductory video featuring A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer of 4structures.com LLC
  • How Do Structured Settlements Work? How Structured Settlements Work
    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company which specializes in assessing mortality risk to price its life insurance and annuity products. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used [WCMSA, LMSA or NFMSA].
  • Top Structured Settlement Annuity Companies 2025
    Which life insurance companies issue structured settlement annuities in 2025? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information. Last updated November 3, 2024
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements 2025
    In 2025, you can structure your settlement payments in various ways. A structured settlement allows for multiple payment types within one agreement. You can tailor and merge different structured settlement payments to suit your individual needs, either alone or alongside other financial instruments. If desired, diversify your structured settlement by utilizing multiple annuity issuers, treasury-funded structured settlements, index-linked structured settlement payments, and market-based structured options.
  • Structured Attorney Fees for Tax Deferral for Attorney Contingency Fees
    Structured attorney fees offer a financial strategy that provides a unique method for deferring taxes for attorneys and their firms. Attorneys can structure or defer their legal fees independently of whether the plaintiff structures their settlement. There are various ways to structure attorney fees, including capped or uncapped index-linked structured settlement annuities with payments adjusted according to the S&P 500 or another index's positive changes. Trial lawyers might also opt for a special deferred payment/compensation arrangement if they seek market-based returns without a cap. As the year-end approaches, consider adding structured attorney fee specialist John Darer® to your settlement planning team for 2025.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life), oran annuity issuer has changed its name and you're trying to track them down. Here you go! The list is regularly updated. Last updated December 9, 2024.
  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
  • iStructure |Uncapped Fixed Index Structured Settlement Annuity
    iStructure is an innovative game changing fixed index structured settlement annuity for plaintiffs or attorneys. with an intermediate to long term horizon
  • Structured Settlements and Longevity Risk| What Are the Odds?
    Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can include one or more customized payment streams and types.

Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

Contact Structured Settlement Expert John Darer®

About The Structured Settlement Blog

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    Simply Click the Subscribe Button at the top left of the page above the blog title which will take you to the blog subscribe page or follow this link https://feeds.feedblitz.com/structuredsettlements
  • STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News, Information and Commentary, John Darer Reviews, Settlement Planning News and Financial Solutions for over 18 years,
    with a stable readership that seeks credible structured settlement information, John Darer Reviews, commentary and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers, settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties. 4structures.com LLC established this structured settlement blog in 2005. John Darer ®, CLU ChFC MSSC CeFT® RSP CLTC, President of 4structures.com, located in Stamford, CT 06902. John Darer is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. He holds insurance licenses in 45 states, has 41 years financial services experience and 31 years in the structured settlements and settlement planning space. In his capacity as a investigative journalist and commentator, and professionally, John Darer passionately believes that shining the light on a business practice is both healthy and newsworthy. It is in the best interest of injury victims, their families and their legal advisers, that the settlement planning discussion involve those that are properly trained in the topic, properly informed on the topic and, with respect to structured settlements, properly licensed and/or appointed. It has significant instructional and deterrent value to other practitioners and firms as well as those who may be caught in the cross hairs. WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful. Subscribe to the structured settlement blog feed, or a specific category feed through your blog reader, or through the Subscribe button at the top left of this page. Followers of JDDarer™ on Twitter may also receive select content. If you would like to speak with John he can be reached at (888)325-8640 Thank you for reading! Last updated July 10, 2024

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Structured Settlements 4Real Reader Comments

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  • "I wanted to send you this email to say Happy New Year to you and your family. May God continue to bless you. I am grateful that I had the opportunity to meet you on the phone. I truly thank you for introducing me and my son, (redacted) to (lawyer). It is people like you that God put in the path of my son situation. Thanks a million times! {original on file] 1-2-2015
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  • " I wish there were more like you" JG 9-15-2014
  • In my opinion, John Darer is an excellent consumer advocate in the insurance industry. When I had no one else to turn to after running up against the stone walls of these giant insurance company, John Darer used hours of his own time to investigate my situation. Not only is this an invaluable service to me the consumer but it is also of great value to the insurance industry by providing them consumer feed-back. This allows the insurance companies to correct their faults and move toward greater transparency which improves the overall public image of the insurance industry as a whole" JW 9/4/2014
  • John, Keep fighting the fight. -NASP member 12-4-2013
  • John...Thank you for your professional advice-Brandon 11-13-2013
  • "...Thanks to Mr. Darer's blog and personal pointers I was able to obtain a fair price for the sale of client structured settlement. Therefore, if one has no choice, but to sell their settlement educate yourself first before selling start by reading John's blog" Mr P. 11/17/2012
  • "I always appreciate when he (John Darer) keeps us informed on regs and rules. No one does it better"- structured settlement industry colleague and reader RY 7/26/2012
  • "Amen - and continued thanks for your vigilance, John"- RL 8/18/2011
  • "Thanks for writing these great blogs on your site John! As an individual investor I have learned so much about the secondary market (for annuities, structured settlements, lottery payments, etc.) from your blogs and video series!!!" (6/5/2011)
  • I have found the intelligent and forthright information on your site a godsend. So much so I have tried in a small way to pass on my findings to others. Please keep up the good work and enhance your well deserved reputation as the authority on this subject- Mike 4/29/2011
  • John - I can't thank you enough for bringing this to my attention. In my wildest dreams... PJ-May 12, 2011
  • John, I love reading your blog! Not only have I found very useful information there, but the comedy is much appreciated! Thanks for talking about "the big pink elephant in the living room" that everyone else ignores! Thank you again for your help via phone and blog! I really needed to hear what you had to say today! BM 11/23/2010
  • John—this (video published 11/2010) is a well done piece. I like the way you always stick to the facts-AM
  • What a wonderful blog you have! I have completely enjoyed reading some of your posts (4/16/2010)
  • Thank you so very much for discussing my concerns about Symetra, my annuity company. I am amazed that PI attorneys as well as a settlement broker in San Diego, could not answer the simplest questions I had regarding the Safeco/Symetra issue. Your blog/web site is most interesting and informative, and I am grateful you have take on the "watchdog" role! Thank you so much again (3/25/10)
  • "Keep up the good work exposing abuses in our industry - our future depends on clients being properly advised."-CD
  • Just checked out your blog and loved it. Keep up the good and balanced work-DL
  • "...we have never met but I thoroughly enjoy your web site and blog - excellent material…-PB
  • "I enjoy your website and its content. Informative and well written"-JC
  • I heard a radio ad for the Peachtree Settlement Fund as I was driving into work this morning. (San Francisco Bay area.) I decided to check it out on the Internet and came upon your blog. Thank you very much. I do not have a “structured” settlement,
  • "All the others that I had emailed & have seen on the net were "cash now types" & have no concern of me & just are looking for my $$$. When I came across your site & blog I realized that u are an upstanding guy & are not like others. That's why I emailed"
  • This was Great. Right On Point-TS
  • "Other Than John Darer No One Seems To Be Doing Anything"-J
  • Thanks for your help and also for the good work you do on behalf of our industry-L
  • "Thank you for being the inspiration that you are and for being a strong advocate for integrity in our business"-KL
  • "I Commend You On Your Effort To Make a Difference!" -R
  • "He is a fabulous writer who has a great passion for the structured settlement industry. I commend him on the passion he invokes when he writes on his blog listed above. That type of commitment and passion is hard to find and is rare in this world" -AC

Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
  • When it comes to settlement documents it is the ultimate responsibility of the lawyers or claims adjusters who receive input concerning the structured settlement aspects of the documents to actually read the entire document, exercise independent thought and advise their clients properly
  • Be aware that financial advisors use of testimonials is prohibited or restricted
  • Most states require that Testimonials represent the CURRENT opinion of the person who made the testimonial. Be prepared to back it up.
  • Number of States That Prohibit Payment of QSF expenses by licensed agents and brokers
    5 Survey not yet complete.

Comments and Trackback Policy

  • Comments and Trackback Policy
    Comments to this blog are encouraged, welcome and add spice to the interactive nature of blogs. However, the unscrupulous practice by some to deliver comment spam, to connect all manner of unrelated products to structured settlements, detracts from user experience, is NOT tolerated by this author and thus necessitates the practice of comment screening.

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Helpful Structured Settlement Information is Here!

  • Learn more about structured settlements by reading structured settlement expert John Darer's blog
    Researching Structured Settlements? It may be helpful to check (1) in Archived Blog Posts (above left); (2) use the Google search box (below); (1) visit the 4structures® website at https://www.4structures.com, (4) visit 4structures® Structured Settlement Experts YouTube Channel by clicking https://www.youtube.com/user/4structures1, or (5) call settlement expert John Darer® at 888-325-8640, toll-free in the USA, 646-849-1588 in New York City, or 203-325-8640 in CT, or from outside the USA.
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  • The John Darer® authored Structured Settlements 4Real® blog is the most prolific structured settlement blog, providing information, commentary and opinion since 2005 with over 5,420 blog posts, and counting!

Why Take a Structured Settlement?

  • A structured settlement offers guaranteed financial security to personal injury victims, wrongful death survivors and their families. A structured settlement involves a customized stream of payments, provides long-term stable tax-free income, for a period of years or a lifetime. Unlike other income annuities. a structured settlement annuity can have multiple payment streams to address multiple needs in a single contract.

Recent Posts

Tax Deferral Resources | Defer Taxable Settlement

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