by Structured Settlement Watchdog
Shawn Plummer is President of The Annuity Expert out of Atlanta, Georgia and creator of a website, Annuity Expert Advice, that
purports to provide annuity expert advice. Unfortunately for consumers, Plummer's website continues to be laden with inaccuracies about structured settlements and cannot be relied upon in the state it was at time of publication. Today's compilation of Plummer's Crack shows that there's considerable room for improvement.
Plummer's Crack 1
"After the settlement money is negotiated and comes to final terms, the court order will request the funds to be placed into a type of income annuity contract called structured annuities".
- Fact is that structured settlements are negotiated.
- Court orders are only required in certain cases (minors, death cases) to approve the settlement that the parties to the claim or lawsuit have negotiated
- When one is referring to the singular, such as "a type of annuity contract" with a "plumber", one generally does not mix and match a single "universal flapper" with a plurality of "elbow joints".
Plummer's Crack 2
"The annuity is an irrevocable stream of regular payments from an insurance company, which is dictated by the court system".
- An annuity, such as a structured settlement annuity, is an insurance product which is regulated by the state insurance department, which in certain states (such as New York) may be regulated under the more encompassing "Department of Financnial Services"
- The court system does not dictate an irrevocable stream of payments. This may be helpful The U.S. Court System Explained - Democracy Docket.
- For settlements of certain types of cases, a judge, not the court system may need to approve a settlement (e.g. minors, incompetents, or death cases) and the form of distribution.
Plummer's Crack 3
"Structured settlement annuities are similar to either an immediate annuity or a deferred annuity. The structured settlement payments are guaranteed and irrevocable; however, the annuity settlement options can differ from typical income contracts. For example, in a structured settlement payout, the payments may increase or decrease down the road multiple times".
- Structured settlement annuities are qualified funding assets used to fund periodic payment obligations that are part of the consideration for the settlement of a claim or lawsuit. See How Structured Settlements Work | Structured Settlements Explained (4structures.com)
- Structured settlement annuities are unique in that structured settlement annuities can accomodate multiple payment streams in a single contract. See What Are Structured Settlement Annuities? Structured Settlements FAQ (4structures.com)
Plummer's Crack 4
Not all settlement annuities are structured in a payment schedule. For example, settlement money is sometimes paid out in a lump sum within a settlement agreement.
- If there is no payment schedule there is no structured settlement. Consumers cannot just buy a structured settlement annuity. A payment schedule could be a single payment or it could be multiple types of structured settlement payments in multiple payment streams. See Types of Structured Settlement Payments | Your Structured Settlement Payment Options (4structures.com).
Prior Posts About Plummer's Crack
AnnuityExpertAdvice.Com on Secondary Market Annuity is Just "Plummer's Crack" - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary (typepad.com) February 3, 2022
AnnuityExpertAdvice.com Clueless and Unreliable on Structured Settlement - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary (typepad.com) June 5, 2020
AnnuityExpertAdvice.Com Is No Annuity Expert | Calls Non Insurance Product Annuity - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary (typepad.com) November 21, 2019