Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

Can Someone "Sell Their Structured Settlement Policies"?

by Structured Settlement Watchdog

I'm Afraid It's Bull Ship mate

 

"Companies that purchase structured settlements from annuitants—factoring companies—often pay the annuitant pennies on the dollar for their structured settlement policies" claims a settlement planning firm, which also claims "Additionally, many states require court approval to sell structured settlement policies". 

 

Frankly it's total inadvertent bullship, but it's bullship nonetheless.

 

1. Can structured settlement annuitants sell annuity polices? NO
2. Do companies that purchase structured settlemente from annuitants purchase annuity policies?  NO
   
3. When a structured settlement is established does the payee EVER own the annuity policy that funds the periodic payment obligation to the payee?  NO
4. If a structured settlement is established via a QSF does that change things? NO
5. Does JG Wentworth buy structured settlement policies?  NO, they buy structured settlement receivables (factored structured settlement payment rights)

Pennies on the Dollar refers to the amount the buyer of "structured settlement payment rights" will pay to an annuitant to acquire the structured settlement receivables. That is not the equivalent to the purchase of an actual annuity policy.

If a structured settlement transfer is approved by the Court, the annuity owner, which is most often a qualified assignment company associated with the annuity issuer, remains the qualified assignment company, even if there is a new payee for the structured settlement payment rights.

 

 

 

 

 

 

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What Happens if You Die and Never Reviewed or Changed Beneficiary in 37 Years?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Why It's Important to Name and Review Beneficiaries? 

I've previously reviewed the important topic of beneficiary designations extensively in two blogs on the 4structures.com Settlement News Network blog.

Structured Settlement Beneficiary | Why It's Important (4structures.com)

Structured Settlement Beneficiary Designations (4structures.com)

This is also relevant and important to life insurance, bank accounts, investment accounts and retirement accounts and overall estate planning. "Setting it and forgetting it" could have unintended consequences.  Check out the Rolison case that has been heavily litigated in the Western District of Pennsylvania and a had published decision in April 2024.  See The Procter & Gamble U.S. Bus. Servs. Co. v. Estate of Rolison, Civil Action 3:17-CV-00762 | Casetext Search + Citator

Losinger is Winner as Former Partner of Dead Proctor & Gamble Employee Inherits $1M Plus 37 Years After Split

In 1987, Jeffery Rolison filed a handwritten form naming his then partner, Margaret M. Sjostedt  (now Margaret Losinger) the sole beneficiary of his P&G retirement account. Rolison never changed it between 1987 and his death in 2015.  Rolison and Marget broke up in 1988. Margret is set to inherit that $1 million retirement account (over Rollison's estate) as Rolison never updated the beneficiary designation and Margaret was still listed as the beneficiary when he died.

THE PROCTER & GAMBLE U.S. BUSINESS SERVICES COMPANY, as Plan Administrator and on Behalf of THE PROCTER & GAMBLE PROFIT SHARING TRUST AND EMPLOYEE STOCK OWNERSHIP PLAN and THE PROCTER & GAMBLE SAVINGS PLAN Plaintiff,
v. ESTATE OF JEFFREY ROLISON, Deceased, MARGARET M. LOSINGER, and MARY LOU MURRAY Defendants.
IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIANo. 3:17-CV-00762
(JUDGE CAPUTO)

"Rolison Knew That He Needed to Check and Change Beneficiary Numerous Times But Simply Failed to Do So"-Court

"There no record evidence in this case that supports the Estate's position that Rolison failed to change his beneficiary status because of any misrepresentation or omission on P&G's part. Instead, again, the record reflects that P&G warned Rolison to check and change his beneficiary designation numerous times between 1987 and 2015 and that “Rolison knew that he needed to take affirmative steps to change his previous beneficiary status,” but that he “simply failed to do so.” - Court

 

 

Do Structured Settlement Payments Have to Be Equal Payments?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Whether Structured Settlement Payments Have to be Equal (or Substantially Equal) Depends on the Nature of Claim and the Settlement Planning Solution being used

The substantially equal payment requirement applies in situations where:

- There is a non-qualified assignment where a periodic payment obligation is assigned to a U.S. domestic assignment company.
- An immediate annuity is utilized as the funding asset.

What are Non Qualified Structured Settlements and Non Qualified Assignments for Tax Deferral (4structures.com)

IRC Section 72(u) was added as part of the Tax Reform Act of 1986.

• An annuity contract owned by a non-natural person is not considered an annuity contract for tax purposes  IRC §72(u)(1)(A)
• The income on the contract for any taxable year of the policyholder shall be treated as ordinary income received or accrued by the owner during such taxable year   IRC 72(u)(1)(B) and also cited in a presenation to the United States Senate Committee on Finance May 24, 2016 JCX 45-16 (May 20, 2016) "By contrast to the treatment of life insurance contracts, if a deferred annuity contract is held by a corporation or by any other person that is not a natural person, the income on the contract is treated as income accrued by the contract owner and is subject to current taxation. The contract is not treated as an annuity contract".

IRC 72(u)(4) Notable Exceptions to Ownership of Annuity by Non Natural Person

This subsection shall not apply to any annuity contract which—

(A) is acquired by the estate of a decedent by reason of the death of the decedent,

(B) is held under a plan described in section 401(a) or 403(a), under a program described in section 403(b), or under an individual retirement plan,

 

(C) is a qualified funding asset (as defined in IRC 130(d), but without regard to whether there is a qualified assignment),  What is a Qualified Assignment? (4structures.com)

 

(D) is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a) and is held by the employer until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee's beneficiary, or

 

(E) is an immediate annuity.

IRC 72(u)(4) (C) and (E) are germane to structured settlements

A qualified funding asset means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States  Subject to IRC 130(d).

1. such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment. 
2. the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,
3. such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and
4. such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment.

Types of Structured Settlement Payments | Structured Settlement Payment Options (4structures.com)

What is an Immediate Annuity under IRC 72(u)(4)(E)?

For purposes of this subsection, the Code says the term "immediate annuity" means an annuity—

A. which is purchased with a single premium or annuity consideration,

B, the annuity starting date (as defined in subsection (c)(4)) of which commences no later than 1 year from the date of the purchase of the annuity, and

C. which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period

So there you have it. That's where the equal payments (or subtantially equal payments) comes from.

Why Doesn't IRC 72(u) apply to annuities owned by a Qualified Assignment Company?

Because there is an express exception made in IRC 72(u)(3)(C) for an annuity that is a Qualified Funding Asset under IRC 130(d)

Non Qualified Assignment Solutions with Domestic Assignment Company Where IRC 72(u) Applies

• Corebridge subsidiaries American General Life Insurance Company and United States Life Insurance Company in the City of New York through their appointed brokers, where an annuity is used to fund an obligation to make periodic payments.  Note that the same product providers offers an alternative niche domestic solution using a funding agreement (in lieu of an annuity) as a work around for where a deferral is desired without going to an offshore assignment company.
• Metropolitan Tower Life Insurance Company (MetLife) 

Last updated August 8, 2024

 

 

 

 

Survivor Payments | "All payments From a Structured Settlement Are Guaranteed" ?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Structured Settlement Survivor Payments

Seen on the Internet about Structured Settlements this week

A. "If no beneficiary was designated, the payments will become part of the recipient's estate and be distributed according to their will or state laws".

The statement needs further clarification.

Commentary

1. If the Payee dies without having designated a beneficiary to the annuity issuer prior to the Payee's death, AND there are any remaining period certain payments or guaranteeed lump sums, those payments will be paid, when due, to the Estate of the Payee. From there, payment will be distributed in accordance with the Payee's will, if there is one, or state intestacy laws if there is no will.  See intestacy | Wex | US Law | LII / Legal Information Institute (cornell.edu)

2. If a Commutation Rider is in place when the Payee dies, any remaining certain payments and guaranteed lump sums are commuted to a lump sum in accordance with the terms of the commutation rider.

3. If the Payee dies after there are no remaining period certain payments or guaranteed lump sums then payments will cease at the Payee's death.  

Structured Settlement Beneficiary | Why It's Important (4structures.com) May 8, 2024 update

Structured Settlement Beneficiary Designations (4structures.com) May 24, 2021

B. "All payments from a structured settlement are guaranteed"

Commentary

All payments from a structured settlement are contractually guaranteed in accordance with the terms of the contract. 

When a structured settlement is established there are multiple contracts

• A settlement agreement and release which establishes an obligation to pay periodic payments as damages in exchange for a release of claims.
• A qualified assignment, which is a subsitution of obligors from a Defendant or his/her/its insurer(s) to a qualified assignment company
• An annuity contract, which is purchased as a "qualified funding asset" by the qualified assignment company and is owned by the qualified assignment company.

How Do Structured Settlements Work | Structured Settlements Explained (4structures.com)

While the terms "guaranteed" and "certain" are often used synonymously by those holding an insurance license, including some settlement planners and structured settlement brokers and even lawyers, such use is inaccurate and can lead to misinterpretation and/or misunderstanding by Payees.

 

A Structured Settlement Is All It's " Quacked Up" To Be | John Darer Reviews

by John Darer CLU ChFC MSSC CeFT RSP CLTC Structured Settlement Expert

Ways to Use Structured Settlements in Settlement Planning 2024 (4structures.com)

Comprehensive Settlement Planning Services for Injured Persons & Law Firms (4structures.com)

Settlement Experts and Services for Defendants, Lawyers and Claims Pros (4structures.com)

New York Structured Settlements Experts | Settlement Consulting (4structures.com)

Structured Settlement Experts, Settlement Planning Experts NY | CT| NJ | USA | London (4structures.com)

QARP and UCC Article 9 | Choice of Law Considerations in AL, AK, ND, NM, TX, WI, WY, DC

by John Darer CLU ChFC MSSC CeFT RSP CLTC

A Qualfied Assignment Release and Pledge Agreement (QARP) is a type of qualified assignment that gives a
structured settlement payee a security interest in the qualified funding asset pursuant to the Uniform Commercial Code (UCC). 

What is a Qualified Assignment? (4structures.com)

What is the Uniform Commerical Code?

The Uniform Commercial Code (UCC) is a standardized set of regulations for conducting business and financial transactions in any state in the USA as well as the District of Columbia and US Territories. The UCC governs a wide range of transactions, including the sale of goods, secured transactions, negotiable instruments, as well as others. It provides rules and guidelines for parties engaged in business dealings, ensuring consistency and predictability.

State-specific variations exist within the Uniform Commercial Code (UCC). While the UCC is standardized across states, each state may introduce slight modifications or adaptations to particular sections. Generally, these alterations are minor and do not substantially affect the UCC's overall uniformity.

How Does Article 9 of the UCC and Impact the Rights of a Structured Settlement Payee?

Article 9 of the UCC overrides any language in the QARP that would restrict the claimant's ability to assign the right to receive their payment.

This poses a problem for  the QARP because structured settlement annuities must restrict the claimant's ability to assign their payments, While many states have carved out an exception for structured settlement agreements, some have not and this may impact choice of law selection for the QARP with certain annuity issuers.

Seven States and DC That Have Not Expressly Exempted Structured Settlement Agreements from the UCC

Alabama

Alaska

New Mexico

North Dakota  

Texas

Wisconsin

Wyoming

District of Columbia

These 8 juridictions may not be permitted to be used for Choice of law on the QARP.

 

 

 

 

 

 

 

 

Structured Settlement Industry BEST Quarter EVER in Q1 2024 After Record 2023!

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Has the "golden age of structured settlements" returned?   

• March 2024 premium production for the structured settlement industry was $774 MILLION!
• Q1 2024 industry production was $2.273 BILLION, a new quarterly record
• On top of the Structured Settlement Industry's $8.68B Record Year in 2023

What's Behind Structured Settlement Industry Growth?

John Darer reviews what he sees

1. One obvious reason is the return of interest rates post pandemic, beginning in 2022 which eventually eroded anti-selection bias.  Contrast when in April 2020, the 10 year United States Treasury yielded 0.40% to the Internal Rates of Return seen in recent times on 10 year structures that have exceeded 4.5% and at times have exceeded 5%. Bear in mind that because periodic payments from qualified structured settlements (personal physical injury, physical sickness, wrongful death and workers compensation are income tax free[IRC 104(a)(1) and IRC 104(a)(2)], the payment recipient is benefiting from a very competitive taxable equivalent yield. See Tax Advantages of Structured Settlements | Taxable Equivalent Yield Chart (4structures.com)
2. It is clear from multiple sources and surveys that decumulation risk is a major concern for Americans. In June 2023, Allianz claimed that Americans fear running out of money more than fear of death. Nobel laureate William Sharpe has called decumulation "the nastiest problem in Finance".  Humans in Financial Transition are who we deal with. Structured settlements are an important part of the conversation and the solution.
3. Years of declining interest rates encouraged producing structured settlement industry particpants (including settlement planners) to up their game and be better educated and skilled at what they do. 
4. Diversification of product offerings within the industry. Annuity issuers and other product providers have stepped up to the plate.
5. Industry workflow systems continue to improve operating efficiency.
6. Increased investment by product providers and brokers/planners in business development tools. MetLife has made the most visible marketing efforts to be seen everywhere
7. Increased investment in knowledge by industry participants leads to more fluency in approach and delivery of services to clients and prospects that leads to greater opportunities
8. Continued growth of flexible business models. 
9. To some extent, there are Pandemic era backlog cases continuing to work their way to resolution.
10. To some extent the severity levels of claims have increased.

Why Structured Settlements?  Because Certain Sells®

 

 

 

 

 

Structured Settlement Commutation Riders Must Be Revisited Before Estate Tax Cuts Expire in 2025

by John Darer CLU ChFC MSSC CeFT RSP CLTC

The Estate Tax Cuts under the Tax Cut and Jobs Act are set to expire on December 31, 2025. Unless renewed, exclusion rates on the Federal level are set to go back to preceding levels indexed for inflation.

Berkshire Hathaway Life Insurance Company of Nebraska is a structured settlement annuity issuer with a responsive Second Generation structured settlement commutation rider. See my April 4, 2022 blog post on 4structures' Settlement News Network Blog Estate Cannot Commute Structured Settlement to Lump Sum IF... (4structures.com)

Second Generation Structured Settlement Commutation Riders

A Responsive Structured Settlement Commutation Rider helps maintain the benefits of structured settlement payments for survivors by assuring that only the amount necessary to pay the shortfall in the obligation to pay off liens (with an SNT), and/or tax liability (as the case may be) is used giving a reasonable chance that the obligations can be satisfied without compromising the integrity of the structured settlement benefits for surviving spouses, children or other beneficiaries.

Why Were First Generation Structured Settlement Commutation Riders Created?

First generation commutaton riders were created to solve a need for estate liquidity to pay taxes where there was none and when the Federal Estate Tax exemption was only $600,000. Life insurance was and still is an efficient potential solution to provide liquidity at a Payee's death. Obtaining such life insurance was (and still is) an option for the insurable but not for those with the most serious injuries or medical conditions. Care must be taken when considering the choice of applicant for such insurance (e.g. a trust) to keep the life insurance proceeds out of the estate of the structured settlement payee.

First generation commutation riders require the selection of a commutation percentage up to 100%, calculated based on either the annuity issuers prevailing structured settlement annuity rates, or an objective formula using a discount rate based on a published index. The commutation precentage has to be in the Settlement Agreement and the applicable Qualified Assignment Agreement in accordance with the procedures established by the annuity issuer and its qualified assignment company.

Expansion in Use of Structured Settlement Commutation Riders to Claimants With Special Needs

After First Generation Commutation Riders expanded in application to settlements of plaintiffs with special  needs, a new dilemma arose in certain jurisdictions, Forced 100% Commutation, because it would only be speculation as the date of death and the accumulated expenses on the date of death.

There is something patently unfair with the need for a 100% commutation when establishing a long term structured settlement  (in certain states and counties in New York for example) when the liquidity it creates may end up being far in excess of what is actually needed to pay off a lien. This means that survivors lose the income tax-free benefits of a structured settlement because it will be 100% commuted to a discounted lump sum at the death of the decedent.

Berkshire Hathaway Responsive Commutation Rider/ Second Generation Commutation Rider (Cont.)

Berkshire Hathaway has a thoughtful solution that covers contingencies, (1) there are insufficient monies in the special needs trust to satisfy Medicaid liens (2) there are sufficient monies in the special needs trust to satisfy Medicaid obligations and is available in states that are members of the Interstate Insurance Compact.The Insurance Compact established a multi-state public entity, the Interstate Insurance Product Regulation Commission, which serves as an instrumentality of the Member States. The Compact serves as a central point of electronic filing for certain insurance products, including life insurance, annuities, disability income, and long-term care insurance that are reviewed for compliance pursuant to comprehensive and detailed uniform product standards developed and adopted by Member States as their product content requirements, affording a high level of protection to purchasers of asset protection insurance products.

USAA Life Insurance Company has a Liquidity Solution at the Death of the Payee based on an Objective Formula.

An advantage of USAA's solution is there is no need to speculate on a percentage commutation. Please note that USAA Life Insurance Company structured settlement annuities are not available in the State of New York.

Every Single Premium Immediate Annuity issued by USAA Life Insurance Company for use as a funding asset for structured settlement assignment (a “Structured Settlement Annuity”) contains a “Death Benefit Paid as a Lump Sum” provision (the “Commutation Provision”).

The USAA Life Structured Settlement Commutation Provision provides:

"If the Owner requests the Death Benefit be paid as a lump sum, we will pay the lump sum to the Beneficiary, and the Contract will terminate. The lump sum is determined by discounting the remaining guaranteed Benefits.  USAA will use use a discount rate 1% higher than the rate used to determine your original Benefits. This 1% increase means that the lump sum will be less than the remaining guaranteed Benefits.

USAA Annuity Services Corporation, as the Owner, will standardly provide a commuted value offer in the processing of a death claim. The offer is a one-time, all-or-nothing offer for each beneficiary – no partial commutation can be provided. However, a commutation offer will not be provided if the Company (1) receives written instructions to the contrary from the settling parties prior to annuity issuance or if
commutation is prohibited by court order, and (2) an appropriate endorsement is obtained before policy issuance.

The commuted lump sum is calculated using the contract interest rate plus 100 basis points (i.e., 1%). For instance, if the contract interest rate is 4%, the commutation rate is 5%. The commutation rate is thus established at contract issuance and is not market dependent".

There is a Need for Responsive Commutation Riders to become the Common Practice

In 1995 there were no commutation riders. Before the turn of The Millennium there was an Allstate Private Letter Ruling and other companies followed. A cessation of liability rider is another clause in a structured settlement that ends the obligation of the insurer under certain circumstances. 

Structured Settlement Commutation Riders with SNTs Best Practices (4structures.com)

Opportunity For Structured Settelment Factoring Industry If Primary Market Cannot Get It Together

Last updated January 16, 2024

John Darer Reviews How AI Demonstrates How Bad Information from Annuity.Org Gets Spread

by John Darer CLU ChFC MSSC CeFT RSP CLTC

I asked Microsoft's AI what was the difference between a structured settlement and an annuity and this was the result

Aligned

"A structured settlement is a form of negotiated settlement of claims and lawsuits in which some portion of damages is paid in the form of periodic payments. It is not a financial product, but rather a method of payment¹. On the other hand, an annuity is a financial product that provides a guaranteed stream of income over a specified period or for life^{1 2}.

Trails Diverge

"While structured settlements are often funded by annuities, they are not the same thing. Annuities can be purchased by individuals, while structured settlements are awarded by courts to plaintiffs². Additionally, annuity sales do not require court approval if you purchased or inherited the annuity, whereas structured settlement payments require court approval to sell²."

I hope this helps clarify the difference between the two", said Microsoft AI Bing.

Bing cited sources as follows :   1.  4structures.com, and 2. Annuity.org

Bing AI is unable to discern fact from fiction when it comes to the tractor beam of the " awarded a structured settlement" vortex.

Structured settlements are negotiated and are the result of a compromise.

Awards are not settlements

• A Grammy Award is not a settlement 
• An Academy Award (Oscar) is not a settlement
• If the President pins the Medal of Honor on you it is not a settlement
• If you make Dean's list it's not a settlement
• If you win the 200 yard Butterfly at a swim meet, that's not a settlement
• If you win a spelling bee in second grade, it's not a settlement

Lists of civil awards and decorations of the United States - Wikipedia

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Annuity.org | Sweeping Up Poor Annuity.org Research (typepad.com)

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Awarded a Structured Settlement Vortex (typepad.com)

You Negotiate. If a Compromise is reached, it may include a structured settlement

Structured Settlement Brokers Try to Drive Sales with Lone Dog 30 Year Old Legal Malpractice Case

by John Darer CLU ChFC MSSC CeFT RSP CLTC

For three decades certain structured settlement brokers and settlement planners have raised the 30 year old Grillo legal malpractice case to drive structured settlement annuity sales, by trying to scare the crap out of plaintiff lawyers.

But why has there been such a dearth of notable, relevant legal malpractice cases related to structured settlements in 30 years?

Maybe There's a Better Way to Promote Structured Settlements?

If there have been no other notable legal malpractice cases in 30 years, then maybe this is not such a big deal, even if the premise of offering a structured settlement is sensible.

"Since Grillo, other cases have been filed against attorneys and other participants in personal injury cases where lump sums were accepted instead of structured settlements" claims one of settlement advisers.

Well if that's really the case. why keep it a secret? How about providing the details, for the sake of credibility?

A Death That Nobody in the Structured Settlement Industry Noticed, until 12 Months Later

When celebrities and famous people die, we notice. Christina Marie Grillo Sullivan was certainly someone of note to structured settlement brokers and settlement planners. She left this realm on September 17, 2014. Nobody in the structured settlement and settlement industry noticed. No announcement, bulletin or anyone posting on Facebook or Twitter or memorial video on YouTube.

Then, September 14, 2015, I happened to look up Christina Grillo on the Internet and discovered that she had died a year earlier. I immediately wrote and published this tribute Christina Marie Grillo Sullivan (1982-2014) | An Extraordinary Woman - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

But not a peep from NSSTA, SSP or any structured settlement broker or settlement planners who had been using her name to drive structured settlement annuity sales. Nobody noticed. 

The Court transcript from the more than three decade old late minor's prove up hearing does not appear to jive with the marketing by generations of structured settlement brokers and settlement planners

All is not what it seems folks. Giddy settlement advisers taking creative liberties concerning the case of Grillo v Pettiete, or Grillo v Henry (the guardian ad litem) is not a good look.  Sometimes a story gets told incorrectly and the "urban legend" gets passed from generation to generation. 

I have read a copy of the transcripts and it did not appear to go down the way a generation of settlement planners has spinned it, and continues to spin it to sell more structured settlement annuities or even special needs legal related services. Settlement advisers and anyone else interested can and should read them for themselves by clicking on the links below.

Download TRANSCRIPT1_001 Mr Juniker 1-3-1991

Download TRANSCRIPT2_001 Josephine 1-10-1991

Download TRANSCRIPT3_001 Texas Court of Appeals decision reinstating cause of action against Guardian Ad Litem 1-14-1999 likely led to the settlement.

The "Grillo case"  has been promoted as the poster child for potential attorney fee liability for failing to consider (or offer) a structured settlement to their client.  [see Grillo v Pettiete Cause No. 96-145090-92 and Grillo v Henry Cause 96-167943-96, 96th District Court Tarrant County, Texas.

In that now "dog-eared" legal malpractice case there arose legal questions over whether there is ever a duty to offer a structured settlement. Plaintiff's legal malpractice attorney was quoted as saying "the defendant insurance company offered a structured settlement to the child and plaintiff alleged that the offer was never relayed to the parents and, in fact, never relayed to the court.”. Read the transcripts.

In New York, the 22 year old 2001 Appelate Division 2nd Dept. ruling in Lyons v Medical Malpractice Insurance Association is cited from time to time. The focal point of the Lyons case was on plaintiffs' counsel understanding of Present Value and the duty of privity. In the case there were "questions of fact as to whether the represented present value of the settlement package was a fraudulent, intentional, or negligent misrepresentation, and whether the plaintiffs' alleged reliance thereon was reasonable".  Further, the Appelate  Division ruled that "there was sufficient privity between the parties to support a claim for negligent misrepresentation and that MMIA was aware that the alleged misrepresentation was going to be used for a particular purpose, the plaintiffs were a known party who allegedly relied on the alleged misrepresentation in furtherance of that purpose,and there was conduct by MMIA linking it to the plaintiffs and evincing its understanding of such reliance".

Cite: Alexander Lyons, an Infant, by His Father and Natural Guardian, David Lyons, et al., Appellants, v. Medical Malpractice Insurance Association, Respondent, et al., Defendants.2000-09060
SUPREME COURT OF NEW YORK, APPELLATE DIVISION, SECOND DEPARTMENT 286 A.D.2d 711, 730 N.Y.S.2d 345
June 26, 2001, Argued September 17, 2001, Decided.

Introduction of Structured Settlement Affidavits

Prior to Lyons, the 1990s saw voluntary structured settlement affidavits by a number of New York structured settlement brokers and settlement planners, which were also called a Certificate of Reliability and Assurances (CORA).

Structured Settlement Ethics | Why Structured Settlement Affidavit Matters (4structures.com)

In 2006, as part of sweeping legislation addressing business practices concerning the creation of structured settlements, as well as the possible factoring of structured settlement payment rights, passage of the New York Structured Settlement Protection Act in 2006 New York Code - Laws: General Obligations : (5-1701 - 5-1709) Structured Settlement Protection Act introduced a standard requirement under New York General Obligatons Law for certain mandatory disclosures.

Subsequently, a number of county Supreme Courts in the New York City Metropolitan area made structured settlement affidavits standard operating procedure wherea structured settlement was part of a settlement requiring court approval.

To put things into perspective on the "passage of time"

What Happened in 1991 - On This Day

United States President was George H.W. Bush

Historical Events in 1999 - On This Day

United States President was William Jefferson Clinton

Catching my drift?