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Rated Ages and Structured Annuities, Structured MSA and Structured Judgments - Part 2 Video Podcast

by John Darer CLU ChFC CSSC RSP

In second part of a two part series which explores rated ages and the challenges of impaired risk underwriting for structured settlement annuities John Darer's special guests include Rosemary Brindamour, Chief Medical underwriter for John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Comapny of New York, and Robert Shavelle PhD of the Life Expectancy Project. The podcast was stimulated by the Ron Houben case in which the patient was initially diagnosed as being in a persistent vegetative state for many years but later was discovered to be in a locked in syndrome.

Link to Part 1 of our podcast series on Rated Ages and Structured Settlement Annuities, Structured MSA and Structured Judgments

More on Rated Age and Structured Settlements

Learn more about the Ron Houben, the Belgian man misdiagnosed for 23 years as being in a persistent vegetative state

Rated Ages and Stuctured Settlement Annuities, Structured MSA and Structured Judgments

In this video, John Darer and Mark Wahlstrom discuss the subject of structured settlement rated ages and impaired risk underwriting as it applies to structured settlements and structured judgments. Attorneys, judges, plaintiffs and claims adjusters can all benefit from the information in this podcast, which is the first of a two part series. How do you benefit from a rated age?

Terminated Structured Settlement Brokerages Need to To Update Websites

We understand that, In December 2009, one of the structured settlement annuity insurance companies has terminated the appointments of 5 structured settlement general agencies. The purported reason for the terminations was to assure the continuation of a higher level of service amidst staffing cutbacks.

While it is possible that such  terminated structured settlement agencies will be able to establish "pipeline agreements" with other appointed general agencies. on the date of termination  it became inappropriate for the terminated general agencies to advertise that they are directly appointed with (a list of life) insurance companies" that includes the one that they have been terminated from. To continue to say so would be inaccurate in light of the developments.

Plaintiffs and plaintiff lawyers must  also be aware of and seek a disclosure from these companies that confidential medical information submitted for rated age determinations from the terminating annuity issuer must see an additional set of eyes in order to happen. In other words the terminated broker will no longer be able to submit the information directly to the annuity issuer and must instead submit these documents through its pipeline partner.

This author looks to the relevant company or companies to update their websites forthwith, to bring them in compliance with state insurance advertising statutes, the code of ethics of the National Structured Settlements Trade Association and the Standards of Professional Conduct of the Society of Settlement Planners.

Liberty Life Offers Program to Ease Structured Settlement Rated Age Underwiting Back Log

In April 2009  Liberty Life Assurance Company of Boston introduced its Concierge Underwriting Program. This new program allows for underwriting on any case that you submit for a rated age, regardless of carrier.

To qualify for Concierge Underwriting, a broker must place $500,000 in non-Liberty Mutual Group premium with Liberty Life per quarter, and Liberty Life Assurance Company of Boston will underwrite any case that you submit for rated age throughout the following quarter. 

Liberty Life Assurance Company of Boston is a members of Liberty Mutual Group. Structured settlement annuities placed with Liberty Life Assurance Company of Boston are guaranteed by Liberty Mutual Insurance Company.

Longer Rated Age Response Times From Structured Annuity Issuers

by John Darer® CLU ChFC CSSC RSP

Rated age requests are trending tiwards a longer response times following submission of medicals  . What was once the matter of several hours is now taking 24-48 hours in some cases. Whether the cause is a matter of a trimmed work staff, or a flood of workers comp medicals clogging up the system, the delays are something that now needs to be planned for in advance.

A rated age is an important component of a structured settlement pricing when there are life contingent payments such as:

• Pricing out a life care plan
• Providing a back stop to a special needs trust or  to an investment strategy
• Funding the deferred component of a Medicare Set Aside Trust (MSAT) at the maximum discount
• Funding the temporary life elements of a New York 50A or 50B Structured Judgment
• Funding lifetime retirement benefits or any other lifetime payment stream

Brokers and their staff are encouraged (if they do not already do so) to take the time to review the medicals that they send before they send them. This helps to eliminate redundant reports and may identify salient points for the underwriter's consideration. Perhaps there will be enough resulting time saved to help speed up response times.