by Structured Settlement Watchdog
Has a structured settlement broker or settlement planner altered a New York Life structured settlement quote in an attempt to gain an advantage over a competitor?
On January 20, 2023, a New York Life Vice President sent what appeared to be an industry wide email.
"As a reminder, please be advised that all licensed Structured Settlement brokers and their affiliated agents and support staff are strictly prohibited from making any changes, edits, or revisions to any quote illustrations generated by NYL's proprietary price quoting software. This prohibition also applies to any daily price quotes quotations that you receive from NYL.
Any changes to a NYL quotations without New York Life's prior approval are also strictly prohibited by applicable laws and regulations. Failure to abide by these rules could lead to action by New York Life including contract termination and/or commencement of legal proceedings".
Common Sense, But Why Now?
Seems like basic professional ethics and common sense to me. But was the New York Life memo inspired by the actions of a particular structured settlement broker? I'm afraid it appears to be so.
I have been supplied with a copy of correspondence addressed to board members of an industry trade association. The correspondence was copied from one of the first plaintiff brokers to (1) the board members and (2) to a representative of New York Life on January 18, 2023.
- New York Life Quote- "Book Rate" that that Broker B sent to the plaintiff attorney
- New York Life Quote-Book Rate that Broker A had sent to the plaintiff attorney
- New York Life (Daily) Quote that New York Life sent to Broker B
According to the observations of Broker A's Senior Case Manager it appeared that there was an alteration in the New York LIfe quote
- Changed the rate series
- Changed the Rate effective date
- Changed the cost of one of the lump sums
- Removed the IRR
- Changed the Quote ID (footer)
- Changed the Prepared by (footer)
All that to attempt to gazump another broker on a $100,000 premium case to get a piece of a $3,970 commission? I'm not going to out the individual broker or his firm. They know who they are, but I have to say that I'm shocked. Was it worth putting your license, appointment and reputation in jeopardy?
Code of Ethics National Structured Settlements Trade Association