Misinformation About AIG Bailout Feed

October 23, 2012

The "Structured Settlement Industry Liquidity Crisis of 2008" Was A Misnomer

by Structured Settlement Watchdog®

Why has structured settlement blogger and text co-author Patrick Hindert blatantly mischaracterized the bailout of AIG as a component of a "structured settlement industry liquidity crisis" in a blog post putatively about the annual meeting of the National Association of Settlement Purchasers?  The post is a very good read, in my opinion, until Hindert's squeaky "brain fart".

Hindert states:

 "Both the primary and the secondary structured settlement markets were devastated by the 2008 financial crisis which:

  • Temporarily shut down asset-backed securities markets including securities backed by structured settlement payment rights.
  • Created an industry liquidity crisis which resulted in:
    • J.G. Wentworth, the largest secondary market company, entering bankruptcy in 2009.
    • AIG, the largest primary market company, receiving a financial bailout from the U.S. government in 2008 and 2009.  (emphasis ours)
    • Both Wentworth and AIG have subsequently recovered and regained their respective market leadership roles".

Characterizing the AIG entity which received a bailout as a "primary market company" is misleading. The educational materials distributed by AIG's annuity issuing subsidiaries to settlement industry professionals (presumably including Pat Hindert) made the relationship between companies clear, with particular emphasis on the security of the long term promises made to structured settlement annuitants.

Neither American General Life Insurance Company, American International Life Assurance Company of New York (now United States Life Insurance Company in the City of New York) received a bailout. The structured settlement annuity issuers continued to write business, albeit at a lower volume due to public fears, both rational and irrational.  Some of the irrational fears were stoked by predatory solicitation of AIG annuitants by opportunists in the structured settlement secondary market/ factoring industry. History has proven that those that got sucked into that "cash now for AIG" vortex likely made very bad decisions.

 

Posted at 09:19 PM in AIG Bail Out 2008 | Contemporaneous Observations, Corebridge/American General Structured Settlements, Misinformation About AIG Bailout, National Association of Settlement Purchasers (NASP), Patrick Hindert Narashkeit, Structured Settlement History | | Comments (0)

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Guide to Structured Settlements 2023

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    Structured settlements and what you need to know about them including a helpful introductory video featuring 2023 A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer® of 4structures.com® LLC
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    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
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    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
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    Which life insurance companies issue structured settlement annuities going into 2023? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information.
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
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    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
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    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
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  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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    iStructure is an innovative game changing fixed index structured settlement annuity for plaintiffs or attorneys. with an intermediate to long term horizon

Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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