Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary

Influx Media LLC of Melville NY Plagiarized Copyrighted Work of 4structures.com LLC for Client

by John Darer CLU ChFC MSSC CeFT RSP CLTC

On the one hand, I thought that perhaps I have to thank my competitors from Melville, New York for copying our 2017 blog post announcing that I earned a new professional designation. But really, what part of "Copyright 4structures.com LLC, and its licensors. All rights reserved. No use without permission" does Influx Media , LLC, the Melville NY based digital marketing agency for Settlement Success Intermediaries, not understand? 

Instead of asking for permission, I discovered that Influx Media, LLC, the registrant of the domain settlementsuccess(dot)com and the company hired by Settlement Success Intermediaries, deliberately ignored our copyright, plagiarized and republished more than 30 John Darer authored blog posts from the 4structures.com LLC website, without authorization, without attribution to the author  (having deliberately removed the author by line on all but one post) on a website in the name of the Settlement Success Intermediaries website between March 2 and March 7, 2019 and again yesterday. The posts that Influx Media, LLC  plagiarized in the name of Settlement Success Intermediaries were at all times the intellectual property of 4structures.com LLC.

Excerpt of the first of 5 pages of more than 30 blog posts plagiarized from 4structures.com LLC's  website by Influx Media, LLC  and then republished without authorization,  on the Settlement Success Intermediaries' website, which was designed by Influx Media, LLC of Melville, New York

 

While the published posts on 4structures.com offer buttons for readers to share on Twitter, Linkedin or Facebook,  right clicking to copy is intentionally disabled. It would taken some effort by Influx Media LLC to plagiarize all the content and republish our original work without authorization, and which would not have been given, and without attribution.

Needless to say 4structures.com LLC does not tolerate such conduct with respect to its intellectual property.

Influx Media,LLC , a digital marketing company of apparently questionable ethics,on this showing,  is based at 600 Broadhollow RD. Suite 203 Melville, New York and its Managing member is Don Citron.  Caught with the hand in the proverbial cookie jar on March 27, 2019, Carlos Rodriguez provided a weak defense for his company's multiple deliberate and unethical actions. Influx Media, LLC reckless bheavior put their client Settlement Success Intermediaries at risk and drew unwanted attention. At the request of  the owner of Settlement Success Intermediaries, Influx Media, LLC removed all of the plagiarized posts and the section of the SSI website they appeared in.

What is Plagiarism?

Plagiarism is For Lazy Birds

 

 

 

 

 

 

 

Aviva/Athene Class Action Settlement | What Attorneys Should Know If Client Calls and Says They Received A Check

by John Darer CLU ChFC MSSC RSP CLTC

The Aviva/Athene class action settlement checks have been mailed and some attorneys may be puzzled by calls from their clients. 

Aviva /Athene CMA class action settlement checks have been mailed

First of all I encourage: you to read my May 9, 2018 post on Settlement News Network blog  Do You Have an Aviva or Athene Structured Settlement?

If you want a deeper dive please read my Aviva Structured Settlements coverage on the Structured Settlements 4Real blog.

A few bullet points to distill:

• Aviva did not go out of business
• Aviva sold its USA operations to Athene Holding with that deal closing in October 2013.
• There are no solvency issues for Aviva or Athene. In fact the successor insurer to Aviva following the sale was upgraded by A.M. Best in the interim. A.M. Best affirmed Athene's upgraded ratings in 2018.
  
• The Capital Maintenance Agreement that cost $500 dollars to provide greater peace of mind, when their structured settlement was established between 2002-2009, was unilaterally terminated without notice to annuitants at or about the time of the 2013 closing of the Aviva/Athene deal. Both insurers concealed the the information from their annuitants. Moreover, material facts about the CMA were concealed by Aviva from its agents and even front line employees and , according to Court documents filed by Plaintiffs, discovery revealed that all wasn't what its seemed.
• Fortunately lead plaintiff John Griffiths and I got ahead of the story by making the discovery in the Fall of 2014 and the class action filed by Marcus and Auerbach in July 2015 led to what can only be seen as a positive result for over 4,000 annuitants. Once again nobody lost money, no money was in imminent danger and this was nipped in the bud.

 

 

 

New York City Structured Settlements 2022 | Structured Settlement Annuities in NY State

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

Last updated February 13, 2022

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

Structured Attorney Fees Best Practices to Avoid Unexpected Timing of Income

by John Darer® CLU ChFC MSSC RSP CLTC

When structuring attorney fees or taxable damages in the second half of the year, it is common to push the first payment out until January of the following year so that it is not received in the same tax year as the settlement.  An attorney who is already having a great income year can use this strategy to delay receipt (and thereby some of the taxes) on the fee. In some cases this may result in a lower tax bracket.

Timing is everything when it comes to structured attorney fees and structuring taxable damages

 Care should be taken to avoid the tax planning strategy backfiring by not using a January 1 payment start date for structured attorney fee payments.  Many structured settlement annuity issuers automatically send out payments by check in advance, to assure they arrive on time. One company is known to send out payments as much as 10 days in advance! 

Even if you have direct deposit, you're not completely out of the woods with a January 1 payment date.  The annuity issuer has a contractual obligation to make payments on time.  This applies not just to your January 1 payments, but to likely to tens of thousands of other annuitants and policyholders with the same payment due date.  In 2016, January 1st was on a Friday and the next business day was Monday January 4, 2016.  If the insurer waited to pay the next business day,  payments for thousands of people would have been 3 days late.  Therein lies their dilemma.  So a number of insurers set their computerized payment systems to release direct deposit payments early so that they would be in good faith and timely.

It is possible that you will also receive a 1099 for that payment, in the year of settlement.  What a way to mess up your tax planning if you're not careful.

The same issue goes when using a structured settlement for taxable damages.
 
How to Avoid Getting Hit With Unexpected Income in the Wrong Tax Year  When Structuring Attorney Fees

• Select a first payment date no earlier than January 10th, if getting paid by check
• Select a first payment date a few business days into January, if being paid by direct deposit.

Good Faith Use of Structured Settlements in Bad Faith Claims

by John Darer® CLU ChFC MSSC RSP CLTC

Insurance bad faith  describes a tort claim that an insured person may have against his/her/its  insurance company for its intentional bad acts. Under the law of most jurisdictions in the USA, insurance companies owe a duty of good faith and fair dealing to the persons they insure. This duty is often referred to as the "implied covenant of good faith and fair dealing" which automatically exists by operation of law in every insurance contract.  [ Source : Wikipedia]

In Good Faith Use of Structured Settlements in Bad Faith Claims,  published in the Connecticut Law Tribune on March 14, 2016 , I explore how structured settlements can make a difference in bad faith cases on either side of the damages tax spectrum.  Download Good_Faith_Use_of_Structured_Settlements_in_Bad_Faith_Cases_3-2016 .

I am a frequent contributor to "The Trib". The Good Faith/Bad Faith article, is my 6th published in the Connecticut Law Tribune in the last 12 months.

For further information on structured settlements and bad faith claims and practical illustrations, please contact the structured settlement experts at 888-325-8640

New York CPLR Article 50B | 10 Year Bond Rate Increasing Pain for Plaintiffs

by John Darer® CLU ChFC MSSC CeFT® RSP CLTC

Low 10 year bond rates are increasing the amount of pain (and suffering) for plaintiffs.   If that sounds a bit strange, consider that it has been more than half a decade since the 10 year bond has been less than the statutory growth rate for pain and suffering  under New York CPLR Article 50B.  As things stand, this means that every dollar of pain and suffering is worth more in present value in a structured judgment, than the jury verdict.

Do you have a New York CPLR Article 50B expert on your team at meditations, someone who talks the talk and walks the walk?

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What is an Annuity Payment?

by John Darer CLU ChFC MSSC RSP CLTC

What is an Annuity Payment?

An annuity payment represents the liquidation of principal and interest under an annuity contract.  An annuity payment can be made by check, or direct deposit to your bank account.

What is an Annuity Contract?

An annuity contract is a financial agreement between a life insurance company and its customer outlining each party's obligations. The customer pays a lump sum to the life insurance company as consideration for the promise to make payments in the future. Among other things, the annuity contract sets forth the amounts of payments, the mode of payments (e.g. monthly, annually, deferred lump sums) and the timing and duration of payments.

How Does the Purchase of a Structured Settlement Annuity contract differ from a Retirement Annuity?

With a structured settlement annuity contract, the annuity is typically applied for by a qualified assignment company as a "qualified funding asset" pursuant to IRC 130(d), or by a non qualified assignment company when resolving other types of cases. The qualified assignment company, or non qualified assignment company,  has assumed periodic payment obligations pursuant to a settlement agreement resolving  a legal dispute.  While the annuitant or payee owns the right to receive payments, he/she/it is neither the applicant or owner of the annuity contract.

Who Regulates the Sale of Annuity Contracts to Consumers?

The sale of annuity contracts is regulated by your state insurance department*.  An active license is required to be authorized to solicit consumers and place annuity contracts.  

• The life insurance company that issues the annuity contract must be licensed as an insurer in your state.
• The specific contract form for the annuity must be filed by the life insurance company with the state insurance department and approved for sale in  your state. Do not buy a contract that is not for sale in your state.
• Annuity contracts can only be sold to consumers by licensed life insurance agents or licensed life insurance brokers

* the sale of certain types of annuity contracts, namely variable annuity contracts, also fall under the auspices of securities regulators.

Last updated June 2, 2023

 

 

 

New York Structured Settlements | First Berkshire Hathaway Life Now " A+ "

by John Darer® CLU ChFC MSSC RSP CLTC

Give it up y'all, there's another A+ rated structured annuity company "in the house". The New York "house" of qualified funding assets for structured settlements. The A.M.Best  "A+" rating action concerning First Berkshire Hathaway Life Insurance Company is great news for New York plaintiffs, particularly minors, incompetents or other cases where Court approval is required before a structured settlement can be finalized and the Court requires minimum third party ratings. It adds further diversification opportunities for large structured settlement cases and structured attorney fees. A.M. Best assigned a stable outlook according to our sources.

Summary of Berkshire Hathaway Structured Settlement program for New York personal injury and wrongful death settlements

• Annuity Issuer: First Berkshire Hathaway Life Insurance Company.Home Office:Flushing, NY
• Assignee: BHG Structured Settlements Inc.
• Guarantor:First Berkshire's assignment company, BHG Structured Settlements Inc., is provided a guarantee from Columbia Insurance Company (Home Office:Omaha,NE), a well capitalized affiliate rated A++by A.M. Best AA+by S&P and Aa1 by Moodys at time of publication.

Call John Darer® for a structured settlement quote or consultation to explore your settlement planning needs at 888-325-8640. 

A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

The Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance policy and contract obligations. The rating is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder.For more information please refer to http://www.ambest.com/ratings/notice.asp

Structured settlement annuity issuing life insurance companies,along with applicable assignment companies. Click on column headings for each rating agency to read about their methodology.

 

New York CPLR § 5003-a Prompt Payment of Settlement :The Structured Settlement Broker is Not Defendant

by John Darer® CLU ChFC MSSC RSP CLTC

The structured settlement broker for the Defendant on a recent case got their nose out of joint after I instructed the plaintiff lawyer to send directly to defense lawyer, one original of the settlement agreement  and release, qualified assignment agreement and Stipulation of Discontinuance by Certified Mail, with the remaining originals to be routed through me and then on via my counterpart.  But why?

New York's CPLR 5003-a was enacted in 1992 to encourage prompt payment of settlements (see Cunha v Shapiro, 42 AD3d 95, 101; Siegel, Practice Commentaries, McKinney's Cons Laws of NY, Book 7B, CPLR C5003-a: 121). The statute requires any settling defendant, subject to certain exceptions (set forth in CPLR 5003-a[b], [c], [d]), to pay all sums due to any settling plaintiff "within twenty-one days of tender, by the settling plaintiff to the settling defendant[s], of a duly executed release and a stipulation discontinuing [the] action executed on behalf of the settling plaintiff"(CPLR 5003-a[a])   When the release and stipulation of discontinuance are tendered by mail, the 21-day period is measured from receipt of the documents (see Leipold v Arnot Ogden Med. Ctr., 46 AD3d 1299, 1300; Cunha v Shapiro, 42 AD3d at 101). If the settling defendant fails to pay the sum due under the settlement agreement within 21 days of tender of the required documents, the statute authorizes the plaintiff to enter, without further notice, a judgment in the amount of the settlement, which is to include interest, costs, and disbursements (see CPLR 5003-a[e]).     Source: David M. Gottlieb, Esquire.

I'm certainly willing to be corrected if I'm wrong, but the statute does not appear to have any provision for the "21 day clock" starting to run when the documents are received at the office of the structured settlement broker. Some structured settlement brokers conducting business that involves cases with New York jurisdiction have their paperwork handled by remote independent contractors to the structured settlement broker, who are not even based in the same office; in some cases not even from the same state.

Is the structured settlement broker the agent of the Defendant for purposes of "tender" or is it an agent of the insurance company? How about the independent contractor who is handling the administration for the broker?

Typically structured settlement brokers when working for defendants are retained by an adjuster for the insurer. In some cases the defense attorney retains them with the knowledge and approval of the insurer or market leader.

It is clear that the defense attorney is an agent of the Defendant and thus, in my personal opinion, one original set of documents should be delivered there. Looking for a parallel, with the disclosures that must be made under the New York Structured Settlement Protection Act, the obligation is on "the Defendant or the Defendant's legal representative", NOT the structured settlement broker or the defendant's insurer.

Delays which result in failure to comply with the statute can prove costly for the defendant or insurer and thus, in my personal opinion, noses ought to stay in place.

For more information here is a good article about New York's statute concerning prompt payment following settlement. In a 2nd department case decided in 2010 and discussed in the aforementioned article, the Appellate Division overturned a lower court ruling that supported the defendant's contention that the completion of a IRS Form W-9 was a condition precedent for payment of the sum due in a settlement of a personal injury claim.

 

 

 

Non Qualified Structured Settlement Benefits Magnified By Tax Hikes

by John Darer® CLU ChFC CSSC RSP

A deal reached in the New York State legislature will hike state income taxes by an astounding 31% for all New Yorkers making more than $500,000 a year reports Sunday's New York Post

A second, slightly lower tier would increase state income taxes by 14.5% for singles earning $250,000 to $500,000 annually and for married and joint filers earning $300,000 to $500,000. 

Tax increases increase the intrinsic value of non qualified structured settlements as a tool for resolution of employment cases (e.g. wrongful termination, sexual harassment, qui tam), divorce, structured attorney fees and other settlements which where a non qualified assignment may be used.

New York based celebrities, athletes, actors and actresses may have more incentive to structure their endorsement fees.

Other factors which should stimulate use of non qualified assignments are:

• Inevitable federal tax increases
• Proposed end to sliding scale attorney fees in medical malpractice cases in New York, if enacted.