by Structured Settlement Watchdog
On January 4, 2021 Independent Life Insurance Company ("Independent Life") announced in a press release that it entered into a reinsurance agreement with Hannover Life Reassurance Company of America ("Hannover Re US"), rated A+ by A.M. Best. In accordance with this agreement, effective October 1, 2020 Hannover Re US will reinsure a percentage of Independent Life's in-force business and new business. Independent Life remains 100% responsible for the benefit payments to the structured settlement payees and will continue to administer these payments. Hannover Re US will reimburse Independent Life for the reinsured portion of these payments.
Despite the clear and undeniable message in the January 4, 2021 Independent Life press release, it has come to the attention of the Structured Settlement Watchdog that at least two settlement planners have mischaracterized the nature of the reinsurance in solicitations to clients and submissions to judges in settlements requiring court approval, while pitching Independent's iStructure, the industry's first uncapped undex linked structured settlement annuity. The common conflation is to imply or suggest that the A+ rating from A.M. Best earned by Hannover imputes to Independent and/or that the reinsurance is some sort of backstop.
There is simply no excuse for any settlement planners to conflate the facts that are clearly laid out in the Independent Life press release.