Rogers City Structured Settlements Feed

January 03, 2025

SuttonPark NEGLECTS to Pay Life Insurance on Life Contingent Payments | SuttonPark Victim Impact Story

by Structured Settlement Watchdog

The SuttonPark sparked humanitarian crisis continues. An irreplaceable Prudential life insurance policy used to hedge an investment in life contingent structured settlement payments is in on the precipice and set to lapse on January 5, 2025 because SuttonPark has not paid the premium when it was due December 5, 2024. And you guessed it, SuttonPark is not communicating with the annuitant who has a structured settlement being serviced by SuttonPark. 

SuttonPark Victim's Structured Settlement Established in early 1980s

Cindy Lou from Kalamazoo (Alias) entered into a structured settlement funded with a annuity issued by Metropolitan Life in the early 1980s. The settlement arose out of litigation for the wrongful death of her first husband in a work related explosion on October 29, 1978 in Rogers City in Presque Isle County Michigan .  Those were the days of super high interest rates and payments wre designed to pay monthly payments for the life of Cindy Lou, with a 4% increase each year. Cindy Lou is now 72 years old.

Over the course of time Cindy Lou from Kalamazoo entered into several structured settlement factoring transactions, selling all of her remaining certain payments and a portion of her life contingent payments through 2035. When she sold her life contingent payments, a life insurance policy was purchased from Prudential to hedge the position. The Prudential life insurance policy is owned by Cindy Lou and collaterally assigned to SuttonPark to the extent of its (or its investor's) interest. 

She had been dealing with Wanda Velasquez at SuttonPark for many years, and there had been no proper problem with SuttonPark's timely payment of the nanual premoum, but Wanda Velasquez is no longer there.

The life insurance policy serves a dual purpose

  1. to protect SuttonPark and/or investor(s) in the event of Cindy Lou's premature death prior to receipt of all of the acquired structured settlement receivables they have an interest in; and
  2. to leave the remainder of the insurance proceeds to Cindy Lou Kalamazoo's current husband in the event she dies prematurely.

The life insurance is irreplaceable at this stage. In addition,  overlooking the payment by SuttonPark could create a greater risk for the investor in life contingent structured settlement receivables on the other side of the Cindy Lou Kalamazoo deal, if Cindy Lou dies and also short Cindy Lou's husband. As I understand it, the annual premium due Prudential is $1,080.

Cindy Lou cannot afford the $1,080 on an already tight budget. She will be able to when the payments resume in 2035 (if living) and they will be over $4,000/month. I suggested she try and see if the premium mode can be changed to quarterly and make it more manageable.So far Prudential has said there is only a single payment mode. I've reached out to my contacts at Prudential.

SuttonPark and whoever is in charge, if there is anyone left who has a heart, please help the 72 year old lady out and pay the annual bill that was due December 5th, 2024 (as you always have until 2024). This is not a good look for SuttonPark and the structured settlement secondary market. 

What Are Life Contingent Structured Settlement Payments

Life contingent structured settlement payments are structured settlement payments that will cease upon the death of the Measuring Life.

What is a Hedged Position in Relation to Life Contingent Structured Settlement Receivables?

A hedged position is where an investor buys or is collaterally assigned an interest in a life insurance policy as collateral for their interest in life contingent structured settlement receivables.

What is a Collateral Assignment of a Life Insurance Policy

Collateral assignment of life insurance is a type of financial arrangement where a life insurance policyholder uses their policy as collateral for a loan. In this case, the life insurance policy is used to help raise cash from life contingent structured settlement receivables. 

 How it works

  1. Loan/Structured Settlement Transfer Agreement: The policyholder and lender/factoring company/investor enter into a loan agreement/payment transfer agreement.

  2. Assignment: The policyholder assigns the life insurance policy to the lender/factoring company/investor as collateral.

  3. Death Benefit: If the policyholder passes away before repaying the loan, the lender/factoring company/imvestor receives the death benefit (or a portion of it) to cover the outstanding loan, payments tranferred to amount.

  4. Remaining Benefit: Any remaining death benefit goes to the policy's beneficiaries after the loan is repaid.

If you are an investor in hedged life contingent structured settlement receivables being serviced by SuttonPark you will want to stay ahead of life insurance premium due dates, to avoid stumbling into an unhedged position due to SuttonPark's shambolic rooted humanitarian crisis.

Posted at 09:35 AM in Presque Isle Structured Settlements, Rogers City Structured Settlements |

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Guide to Structured Settlements 2025

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    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 2025
    In 2025, you can structure your settlement payments in various ways. A structured settlement allows for multiple payment types within one agreement. You can tailor and merge different structured settlement payments to suit your individual needs, either alone or alongside other financial instruments. If desired, diversify your structured settlement by utilizing multiple annuity issuers, treasury-funded structured settlements, index-linked structured settlement payments, and market-based structured options.
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    Structured attorney fees offer a financial strategy that provides a unique method for deferring taxes for attorneys and their firms. Attorneys can structure or defer their legal fees independently of whether the plaintiff structures their settlement. There are various ways to structure attorney fees, including capped or uncapped index-linked structured settlement annuities with payments adjusted according to the S&P 500 or another index's positive changes. Trial lawyers might also opt for a special deferred payment/compensation arrangement if they seek market-based returns without a cap. As the year-end approaches, consider adding structured attorney fee specialist John Darer® to your settlement planning team for 2025.
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  • 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.
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
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