by John Darer CLU ChFC CSSC
Allstate Life Insurance Company decided to terminate the sending of awareness reminders concerning its Advance Funding Exchange Notice to structured settlement annuitants with their annual statements January 28, 2008. But the cessation has not come fast enough for structured settlement brokers who pressured Allstate into making the move because it was thought (incorrectly in my opinion) to encourage factoring.
Structured Settlements 4Real sources confirm that the process of termination is not simply the matter of "flipping a switch" because the AFEN notices are "embedded" with the other statutorily required annual notices and a data center overhaul is required. We've been told that it could be as long as 5-6 months before notices actually cease.
and annually thereafter. In response to this, institutions, like Allstate, have software programs that generate these compliance documents. I understand from my sources that the AFEN notices "are embedded" with the statutorily required annual notices, presumably for cost efficiency. More about financial privacy can be found by clicking here, to reach the Privacy Rights Clearinghouse. (a/k/a "The Financial Privacy Rule") requires financial institutions to provide each consumer with a privacy notice at the time the consumer relationship is established
There has been an "illusion", heretofore promoted (but not proven) by someone who is NEITHER a structured settlement broker NOR is appointed by Allstate Life Insurance Company (or its New York subsidiary), that Allstate is sending out multiple notices "to the same person within a short period of time", someone Ergo, to allegations made in the "limited frame of reference" of the "illusion creator" (that the company is actively soliciting its annuitants to sell their payment rights), we may have an answer.
The notices are sent out on each policy anniversary as set forth above. So if more than one person in a family living in a single household has annuities, or one person has several Allstate annuities issued at different times IT IS possible that a household or a single individual could receive, in aggregate, more than one notice. But again, no more than one notice per policy within a one year period.
Appointed structured settlement general agencies and their brokers should expect an official Q and A memorandum from Allstate shortly.
(a) Disclosure required
At the time of establishing a customer relationship with a consumer and not less than annually during the continuation of such relationship, a financial institution shall provide a clear and conspicuous disclosure to such consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, of such financial institution's policies and practices with respect to -
(1) disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 6802 of this title, including the categories of information that may be disclosed;
(2) disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution; and
(3) protecting the nonpublic personal information of consumers.