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

Post Settlement Structured Settlement Underwriting | The Good and The Bad Explained

by John Darer® CLU ChFC MSSC RSP CLTC

What is Post Settlement Underwriting?

Post settlement underwriting is a legitimate business practice** that has been alleged to have been abused by some structured settlement brokers representing casualty and liability insurers. The gist of the allegation is that AFTER a plaintiff has agreed to a specific benefit stream from a structured settlement, on occasion, certain "actors" in the structured settlement brokerage community will see if they can get a better rate for the Defendant or Insurer and go to a further step of allegedly concealing this from the unsuspecting plaintiff and plaintiff attorney,  sometimes by allegedly barring the Plaintiff from retaining a broker of their own.

**one might consider post settlement underwriting  "legitimate" where the case has settled,  the global settlement funding amount has been determined,  final terms of the structured settlement are being negotiated and additional medical information is submitted to see if a better price can be obtained on the structured  annuity or annuities, with full disclosure to both sides. Whatever savings there is on the annuity price has no impact on the global settlement funding amount.  Where a Medicare Set Aside is being considered, a better rated age could mean less is needed to fund the MSA, an attractive solution for both sides.

Why The Bad Aspect of Post Settlement Underwriting Is Virtually Impossible in New York

This alleged bad aspect of the practice of post settlement underwriting,  is a virtual impossibility in states with structured settlement protection acts, like New York, Florida, Massachusetts and Minnesota, whose statutes mandate a disclosure of cost to be made by the Defendant or Defendant's legal representative at the time structured settlement is negotiated  (See New York General Obligations Law §5-1702 and comparable statutes in the other states) .  Were post settlement underwriting to take place in New York, wouldn't the Defendant and the Defendant's attorney have significant personal exposure for fraud?

New York General Obligations Law §5-1702 and How it as Intended to Add To the Integrity of Structured Settlement Transactions

Watch John Darer's podcast on New York General Obligations Law §5-1702 which discusses New York's Structured Settlement Protection Act as it applies to the establishment of structured settlements and the burden it places on the Defendant or Defendant's legal representative.

Undisclosed post settlement underwriting is career suicide for a structured settlement broker. The rogue broker who goes down this path will eventually be found out.

Attorneys for both plaintiff and defense can protect themselves and their clients by utilizing the services of a structured settlement expert.

 

 

Structured Settlement Website Rankings November 2009 ( including USA only stats)

Three Month Trailing Top 10 Global Traffic Rank (Alexa Rank as of 11/18/2009) of Structured Settlement and Settlement Planning Industry websites* (+ or- traffic from 10/19/2009 report). Lower number means more traffic (e.g. Google.com is ranked 1 in the overall scheme)

Who Are Ya?

1. Speaking of Settlements (Social Network)) 511,991+
2. Structured Settlements 4Real Blog (John Darer) 572,981- 
3. 4structures.com, LLC 683,031-
4. National Structured Settlement Trade Association (NSSTA) 940,606+
5. Beyond Structured Settlements Blog (Pat Hindert) 1,169,190-
6. Ringler Associates, Inc. 1,707,973-
7. Settlement Professionals 1,920,906- 
8. Structured Settlement Services, LLC 1,931,827+ (>50% is non US traffic)
9. EPS Settlements 2,297,281+
10. Millennium Settlements 2,672,129+

Three Month Trailing Top 10  USA Traffic Rank (Alexa Rank as of 11/18/2009) of Structured Settlement and Settlement Planning Industry websites*. Lower number means more traffic (e.g. Google.com is ranked 1 in the overall scheme)

Who Are Ya?

1. Speaking of Settlements (Social Network) 124,062
2. 4structures.com, LLC 232,807
3. National Structured Settlement Trade Association 281,631 
4. Structured Settlements 4Real Blog (John Darer) 315,255
5. Ringler Associates, Inc. 488,289
6. Settlement Professionals 496,641
7. Millennium Settlements 631,157
8. James E. Logan Associates 732.902
9. Structured Settlement Services, LLC 734,151
10. Beyond Structured Settlements Blog (Pat Hindert) 735,342

The USA data is meaningful because the USA is the country in which the predominant amount of structured settlements are written. Who is reaching those prospects and clients on the Internet?

This survey omitted from the search results any websites with ISPs that do not differentiate between them and the ISP itself.  It is worth noting that the leading web sites are dominated by those whose creators, individually or as entities, employ a settlement planning approach to their business.

FAST FACT: A November 5-6 2008 Zogby poll found that 37.6% of those asked consider the Internet the most reliable source of news.  Source: Media Bistro

Survey of structured settlement website traffic only covers USA websites of the creation side of structured settlements, including professional or associate members of the National Structured Settlement Trade Association (NSSTA) or Society of Settlement Planners, Inc. (whether individuals or firms), the association websites and alternative structured settlement periodic payment providers.  

ONGOING SURVEY OF STRUCTURED SETTLEMENT WEBSITE STANDINGS

( out of a possible 31 months-this structured settlement survey began in April 2007)

Times Ranked #1 in 3 month global structured settlement website traffic, as measured by Alexa: 

• Structured Settlements 4Real blog (John Darer) 16
• Beyond Structured Settlements blog (Pat Hindert) 12
• Ringler Associates 1
• Speaking of Settllements (LBN's industry social network) 2

Times Ranked #2 in 3 month global structured settlement website traffic, as measured by Alexa:

• Structured Settlements 4Real blog 15
• 4structures.com, LLC 5 
• Beyond Structured Settlements 5
• Structured Settlement Services 3
• Ringler Associates 1
• Speaking of Settlements (LBN's industry social network) 2

NEW! (out of a possible 3 months; survey began September 2009)

Times Ranked #1 in 3 month USA only structured settlement website traffic, as measured by Alexa.

Structured Settlements 4Real blog (John Darer) 2

Speaking of Settlements Social Network 1

Times Ranked #2 in 3 month USA only structured settlement website traffic, as measured by Alexa.

4structures.com, LLC 2

Speaking of Settlements Social Network  1

If your company is not ranked high enough, or consistently unranked, it's time to realize that nobody knows who you are on the Internet. Here's some motivational material courtesy with Roger Daltrey, John Entwistle, the late Keith Moon, Pete Townshend and the following Rock Star? CAN YOU KEEP UP?

Further survey criteria: Companies whose primary business is structured settlement factoring transactions are not counted in this survey because: (i) despite the propaganda and efforts of some to "frame" them otherwise, they are NOT part of the structured settlement industry- they are part of the cash flow, factoring or settlement purchasing industry; and (ii) the additional purpose of this survey is to identify legitimate sources of information for tort victims, their families, consumers, attorneys, judges or companies seeking structured settlements and the structured settlement brokers, certified structured settlement consultants, settlement planners, appointed structured settlement companies and agencies, United States Treasury structured settlement providers, or other financial professionals, who have the ability to deliver this information

Three Month Trailing Top 10 Global Traffic Rank (Alexa Rank as of 11/18/2009) of Structured Settlement and Settlement Planning Industry websites* (+ or- traffic from 10/19/2009 report). Lower number means more traffic (e.g. Google.com is ranked 1 in the overall scheme)

Who Are Ya?

1. Speaking of Settlements (Social Network)) 511,991+
2. Structured Settlements 4Real Blog (John Darer) 572,981- 
3. 4structures.com, LLC 683,031-
4. National Structured Settlement Trade Association (NSSTA) 940,606+
5. Beyond Structured Settlements Blog (Pat Hindert) 1,169,190-
6. Ringler Associates, Inc. 1,707,973-
7. Settlement Professionals 1,920,906- 
8. Structured Settlement Services, LLC 1,931,827+ (>50% is non US traffic)
9. EPS Settlements 2,297,281+
10. Millennium Settlements 2,672,129+

Three Month Trailing Top 10  USA Traffic Rank (Alexa Rank as of 11/18/2009) of Structured Settlement and Settlement Planning Industry websites*. Lower number means more traffic (e.g. Google.com is ranked 1 in the overall scheme)

Who Are Ya?

1. Speaking of Settlements (Social Network) 124,062
2. 4structures.com, LLC 232,807
3. National Structured Settlement Trade Association 281,631 
4. Structured Settlements 4Real Blog (John Darer) 315,255
5. Ringler Associates, Inc. 488,289
6. Settlement Professionals 496,641
7. Millennium Settlements 631,157
8. James E. Logan Associates 732.902
9. Structured Settlement Services, LLC 734,151
10. Beyond Structured Settlements Blog (Pat Hindert) 735,342

The USA data is meaningful because the USA is the country in which the predominant amount of structured settlements are written. Who is reaching those prospects and clients on the Internet?

This survey omitted from the search results any websites with ISPs that do not differentiate between them and the ISP itself.  It is worth noting that the leading web sites are dominated by those whose creators, individually or as entities, employ a settlement planning approach to their business.

FAST FACT: A November 5-6 2008 Zogby poll found that 37.6% of those asked consider the Internet the most reliable source of news.  Source: Media Bistro

Survey of structured settlement website traffic only covers USA websites of the creation side of structured settlements, including professional or associate members of the National Structured Settlement Trade Association (NSSTA) or Society of Settlement Planners, Inc. (whether individuals or firms), the association websites and alternative structured settlement periodic payment providers.  

ONGOING SURVEY OF STRUCTURED SETTLEMENT WEBSITE STANDINGS

( out of a possible 31 months-this structured settlement survey began in April 2007)

Times Ranked #1 in 3 month global structured settlement website traffic, as measured by Alexa: 

• Structured Settlements 4Real blog (John Darer) 16
• Beyond Structured Settlements blog (Pat Hindert) 12
• Ringler Associates 1
• Speaking of Settllements (LBN's industry social network) 2

Times Ranked #2 in 3 month global structured settlement website traffic, as measured by Alexa:

• Structured Settlements 4Real blog 15
• 4structures.com, LLC 5 
• Beyond Structured Settlements 5
• Structured Settlement Services 3
• Ringler Associates 1
• Speaking of Settlements (LBN's industry social network) 2

NEW! (out of a possible 3 months; survey began September 2009)

Times Ranked #1 in 3 month USA only structured settlement website traffic, as measured by Alexa.

Structured Settlements 4Real blog (John Darer) 2

Speaking of Settlements Social Network 1

Times Ranked #2 in 3 month USA only structured settlement website traffic, as measured by Alexa.

4structures.com, LLC 2

Speaking of Settlements Social Network  1

If your company is not ranked high enough, or consistently unranked, it's time to realize that nobody knows who you are on the Internet. Here's some motivational material courtesy with Roger Daltrey, John Entwistle, the late Keith Moon, Pete Townshend and the following Rock Star? CAN YOU KEEP UP?

Further survey criteria: Companies whose primary business is structured settlement factoring transactions are not counted in this survey because: (i) despite the propaganda and efforts of some to "frame" them otherwise, they are NOT part of the structured settlement industry- they are part of the cash flow, factoring or settlement purchasing industry; and (ii) the additional purpose of this survey is to identify legitimate sources of information for tort victims, their families, consumers, attorneys, judges or companies seeking structured settlements and the structured settlement brokers, certified structured settlement consultants, settlement planners, appointed structured settlement companies and agencies, United States Treasury structured settlement providers, or other financial professionals, who have the ability to deliver this information

Three Month Trailing Top 10 Global Traffic Rank (Alexa Rank as of 11/18/2009) of Structured Settlement and Settlement Planning Industry websites* (+ or- traffic from 10/19/2009 report). Lower number means more traffic (e.g. Google.com is ranked 1 in the overall scheme)

Who Are Ya?

1. Speaking of Settlements (Social Network)) 511,991+
2. Structured Settlements 4Real Blog (John Darer) 572,981- 
3. 4structures.com, LLC 683,031-
4. National Structured Settlement Trade Association (NSSTA) 940,606+
5. Beyond Structured Settlements Blog (Pat Hindert) 1,169,190-
6. Ringler Associates, Inc. 1,707,973-
7. Settlement Professionals 1,920,906- 
8. Structured Settlement Services, LLC 1,931,827+ (>50% is non US traffic)
9. EPS Settlements 2,297,281+
10. Millennium Settlements 2,672,129+

Who Are Ya?

This survey omitted from the search results any websites with ISPs that do not differentiate between them and the ISP itself.  It is worth noting that the leading web sites are dominated by those whose creators, individually or as entities, employ a settlement planning approach to their business.

FAST FACT: A November 5-6 2008 Zogby poll found that 37.6% of those asked consider the Internet the most reliable source of news.  Source: Media Bistro

Structured Settlement Lock-Ins | What Does a Structured Settlement Lock-In Mean?

by John Darer ® CLU ChFC MSSC CeFT RSP CLTC

What Does a Structured Settlement Lock-In Mean in Terms of Benefit? Responsibility? Commitment?

Structured settlement lock-ins offer valuable benefits to plaintiffs, defendants, their respective attorneys and insurers.

Structured settlement lock-ins enable settling parties to fix benefits that are being submitted for Court approval, where the court approval process make take months and where the Court needs to see actual not hypothetical benefits. A judge can approve benefits without the fear that they are no longer available

With a lock-in, and provided the structure funding is timely, the benefits submitted in the attorney's affirmation and plaintiff's petition are the benefits they plaintiff will receive.

A structured settlement lock-in enables settling parties to fix benefits where a period of time will pass before the defendant is legally required to pay

For example, you may fund that state and local governments have an extended period of time to pay claims from the time it receives its requirements. Another of many example is where certain insurers negotiate at mediation on large cases to pay the cost of settlement over a series of months. The settlement planning process may be complex, but the structured settlement element of the plan may be decided.

With a lock-in, and provided structured settlement funding is timely, adverse interest rate movement can be avoided.

It's important that judges, attorneys, insurers and litigating parties understand that lock-ins are a privilege granted by the structured settlement annuity issuer.

When Locking in a Structured Settlement, Are You Locking in Benefits or a Rate of Return?

There is sometimes confusion about whether you are locking in a rate or locking in benefits. The latter is true, although the rate (Internal Rate of Return) is a by product. You must have a benefit stream or benefit streams to lock-in. You cannot for example, say I'm going to lock-in the rate at 5.5%. 

Structured Settlement Lock-in Tips

1. In busy jurisdictions timing of Court approval is not easily predictable. Therefore one should employ a reasonable purchase date for structured settlement lock-ins that allows a reasonable buffer for any delay.
2. It is worth consideration to include language that permits a "date slide" in the settlement documentation which acknowledges that payment dates are to be moved the number of days between the anticipated and actual funding dates in the event of funding delay resulting from a protracted Court approval process.

The following excerpt from one life insurer's lock-in commitment form does an excellent job of explaining the commitment offered by the lock-in:

"The Broker acknowledges that the Settlement Parties understand and are in agreement with the following:

•  Investment commitments will be made in anticipation of the payment of the Premium to Prudential on the Purchase Date. As a result, once the attached quote is acknowledged and locked in by Prudential, if the cost for these benefits goes up, the Settlement Parties will not be responsible for the additional cost. Similarly, should the cost drop, the Settlement Parties are not entitled to any additional benefit or cost savings.
•  The quote is locked in on the current rate series indicated on the attached quote and no changes may be made unless acknowledged in writing by Prudential.
•  The lock in may not be canceled by any of the Settlement Parties. Should a Court disapprove this settlement, a written request must be submitted to Prudential for cancellation of the lock-in or refund of the Premium (if funding has already taken place).
• Any delay in funding may result in i) the movement of the quote payment dates by the same number of days as the delayed funding or ii) a higher annuity cost.

 *IMPORTANT NOTE: The submission of this form should only occur after a settlement has been reached. If the terms of this deal may change, this form should not be submitted and this case should not be locked in. If the quote is not locked in, the Settlement Parties should be aware that the benefits and/or purchase price under the quote in question might change due to changing market conditions and pricing of the annuity issuer".

A key point is "Investment commitments will be made in anticipation of the payment of the Premium to Prudential on the Purchase Date".

This is important because, if the deal goes South, the life insurer may lose tens of thousands of dollars, particularly if interest rates move in the wrong direction. Understand what a lock-in is and what at can do for you, your client or ward, BUT don't abuse the privilege.

Last updated May 12, 2024

How Long Does A Structured Settlement Last?

by John Darer CLU ChFC CSSC RSP

The question of how long does a structured settlement last is today's Structured Settlement FAQ. The answer is " a structured settlement lasts virtually as long as you want!" A structured settlement is fully customizable and there are many types of structured settlement payment streams available to match up to or suit an individual claimant's or family's financial needs. More than one type of payment stream can be combined in a single structured settlement. Different structured settlement plan designs can be set up for different family members in the same settlement. All payments under a structured settlement are income tax free. A non qualified assignment has similar properties to a structured settlement while taking advantage of tax deferral instead of the IRC 104(1) or IRC 104(a)(2) tax exemption.

New York Life Chief Investment Officer Says No Need For TARP

Gary Wendlandt

, chief investment officer and vice chairman of New York Life Insurance Company, said in an interview with Dow Jones Newswire on Friday May 15, 2009 that, with more than

$12 billion

in surplus capital at the end of 2008, "we have more than enough capital to achieve our strategic objectives."

April 6, 2009 Video of New York Life CEO Ted Mathas

New York Life Insurance Company remains the only structured settlement annuity company that has the absolute top ratings from A. M Best, Moodys, Standard & Poors and Fitch  (A++, Aaa, AAA, AAA)

Would you like to see a New York Life structured settlement quote?

Simply complete and submit this secure online form, or call toll-free 888-325-8640

"MetLife Has Adequate Capital To Sustain Further Deterioration in The Economy"-CEO

The following information  may be helpful to annuitants with MetLife structured settlements or those considering them.

On April 13, 2009 MetLife announced that it had elected NOT to participate in the US Treasury's Troubled Asset Relief Program (TARP).

In a May 7, 2009 press release concerning the Supervisory Capital Assessment Program, Met Life stated that it had been informed by the Federal Reserve that "it had completed the capital assessment process and that, based on its economic scenarios and methodology, MetLife has adequate capital to sustain a further deterioration in the economy,” said C. Robert Henrikson, chairman, president and chief executive officer of MetLife, Inc. “We are very pleased with this result, which we believe reinforces what we have been saying – MetLife is financially strong and well positioned for both the current environment and a potential further economic downturn.”

“MetLife has a strong excess capital position, ample liquidity and leading market positions in our
core group and individual insurance businesses, where our revenues continue to be healthy,”
added Henrikson. “The company remains well positioned to continue meeting the needs of
clients and has the capacity and financial strength to further solidify its leading position in the
industry.”

Click below to read the entire May 7, 2009 press release

Download MetLife CAPResultsRls5-7

I-35W Bridge Collapse...Now "Holden" Just a Minute!

The Minneapolis-St. Paul Star Tribune's Jim Foti reports on the task faced by the Special Master panel of lawyers to fairly allocate slices of the fund created by the Minnesota State Legislature to compensate survivors of the I-35W Bridge Collapse disaster of August 1, 2007 . A portion of the article contains misinformation about structured settlements that appears to be jointly attributed to Susan Holden Chairwoman of the Special Master Fund as well as Mr. Foti through his analysis which says:

"Settlements given to minors, such as the kids who were on the school bus, are put in special interest-bearing accounts that aren't available until the child is an adult, although some of the money can be used before then for medical expenses. Holden said some survivors had been wary of such "structured settlements" because of the troubles on Wall Street, but the companies that provide such settlements must meet strict requirements and settlements involving minors must be court-approved".

Section 540.08 of the 2008 Minnesota Statutes provides that upon petition of the parent, "the court may order that the property received be invested in securities issued by the United States, which shall be deposited pursuant to the order of the court, or that the property be invested in a savings account, savings certificate, certificate of deposit, or share certificate, in a bank, savings association, trust company, credit union in which either the depositor or beneficiary is a member, or an annuity or other form of structured settlement, subject to the order of the court". 

Rule 145 of the Minnesota General Rules of Practice for District Courts deals with Actions on behalf of minors and incompetents and Mr. Foti and the Star Tribune would have been well advised to read these rules prior to writing an article which provides misinformation.

FACT: A structured settlement is NOT "a special interest bearing account". Foti has mislabeled interest bearing depository accounts that are set forth in Section 540.08 of the 2008 Minnesota statutes and 145.05(d) and 145.05(e) of the above cited rules as structured settlements. Rule 145.06 deals with structured settlements for minors. Rule 145.06(b) requires that the company issuing the structured settlement be:

Licensed to do business in Minnesota

Possess an A.M. Best rating of A+, Class VIII or better

Has complied with applicable provisions of Minnesota statutes 549.30 and 549.34

If the annuity issuer is related to the settling party or its insurer then the structured settlement must be at least as favorable as at least one other competitively offered annuity obtained from a qualified insurer that is unrelated to the settling party or its insurer

Rule 145.06(b)(3) also permits a structured settlement trust making periodic payments funded by United States Government obligations (United Stated Treasury Bond Structured Settlement)