by Structured Settlement Watchdog
Frank ReCouper, Sr. head of "cash now pusher" factoring company, FDR Resources and purportedly "Joe Pep's" partner (in R&P Capital), embarrasses himself in "Are Structured Settlements Affected By The Bailout"? One wonders what someone who advertises that he has been in financial services for over 45 years has been doing to get it all so wrong on the fundamentals.
Misinformation from Frank ReCouper, Sr.
1.Says annuities and structured settlements are regulated by a State Insurance Commissioner.
- FACT: Insurance companies, agents, brokers and the sale of insurance products (including annuties) are regulated by the state insurance commissioners in the states in which those subject are domiciled and/or products sold.
2. Says "State Law states all annuities an structured settlements have separate reserve accounts".
- FACT: Annuities and structured settlements are insurance products. Products do not have reserve accounts.
3. Says the individual state insurance laws covers all annuities and/or structured settlements and have a reserve set aside to cover all the responsibilities of that annuity and/or structured settlement.
- FACTS: Insurance laws do not have reserves, insurance companies do.
- Annuities and/or structured settlements do not have responsibilities. When it comes to structured settlements there are multiple options of responsibility depending on the facts of the case: the responsibility is that of the defendant or its insurer if there is no qualified assignment; the assignee if there is a qualified assignment; the annuity issuer if the assignee fails to pay and there is a wrap around guarantee; an upstream holding company in the case of American General Life or Pacific Life and annuity structured settlements.
- State insurance laws do not apply to treasury bond funded structured settlements.
4. Says "The State of Texas (which oversees the AIG life insurance department that guarantees these annuities and/or settlements) supervises and monitors each of these reserve accounts".
- FACTS: The state of Texas DOES NOT oversee the affairs of American International Life Insurance Company of New York.
- Insurance companies are regulated by state insurance departments in each of the states they do business.
- The AIG life insurance department DOES NOT guarantee any annuity or structured settlement.
- Annuities are backed by the full faith and credit of the insurance company which writes the annuity contract or policy.
- As stated in 3 above, an upstream holding company of Houston based American General, AGC Life Insurance Company, guarantees periodic payment obligations assigned to American General Annuity Service Corporation, when a qualified assignment is used in conjunction with an American General Life Insurance annuity.
The misinformation Frank ReCouper's provides is, with few exceptions,typical of "cash now pushers" whose members writes about structured settlements in attempt to gain shelf space to set consumers up for "the main event". Much of what I've explained should be basic knowledge for every licensed insurance agent. Poorly researched digitial diarrhea is not useful to consumers.
If you are going to write about structured settlements, is being financially literate AND articulate too much to ask?