On September 18, 2008 Woodbridge Investments opportunistically and prematurely danced on the graves of "major insurance giants like AIG" in a Press Release which stated:
"Recent financial troubles and bankruptcy scare for insurance giant AIG has created opportunity for structured settlement factoring company Woodbridge Investments. Woodbridge Investments LLC is a leading structured settlement factoring company who has seen explosive growth in the purchasing of settlements backed by major insurance giants like AIG...
"...Our customers are dealing with an inherent fear, and anxiety that naturally comes when you are expecting to receive payments for the next twenty or thirty years from companies like AIG that are linked with unprecedented real and rumored cases of bankruptcy.
Fact: . Not a single "major insurance company , like AIG" that is writing structured settlements "went bankrupt" or was taken over by a state insurance department during the 2008-2009 financial crisis.
Fact: Insurance companies are exempt from bankruptcy laws and cannot go bankrupt. See 11 U.S.C. §109(b)(2),(3) which states, in pertainant part, "a person may be a debtor under Chapter 7 of this title only if such person is not (2) a domestic insurance company (3) a foreign insurance company engaged in such business in the United States". Note also discussion in Protecting the Catastrophically injured Plaintiff's Recovery by Michael W. Kessler, Esq.§1.45 p 36 and footnote 71.
ON THE OTHER HAND... 9 MONTHS LATER...ALL writing structured settlement companies are still around and...
Woodbridge Investor Package soliciting 7-9% returns includes Articles on the Safety of Investing in Structured Settlements includes the following
"Even in a worsening economic climate, life insurance companies are likely to retain investment grade ratings according to a new report from Moody’s, as reported in The Wall Street Journal. This is important news for anyone settling a physical injury or wrongful death claim because many of these companies issue structured settlement annuities.
According to Dow Jones, the Moody’s report concludes that life insurance carriers it has surveyed “are considered to be fit enough to weather the financial and economic crisis because of their solid balance sheets.” Moody’s reports that its reviews of these companies suggest that insurers are most likely to retain investment grade ratings.”
from June 4, 2009 Moodys report that Life Insurers Are Likely to Maintain "Solid Balance Sheets" cited as from NSSTA.com and even quotes former NSSTA President Dan Durbin of Allstate Life insurance Company.
What sort of ethics does a company like Woodbridge have when on the one hand it scares the crap out of annuitants about the safety of insurance companies and on the other hand brags about the financial security of the same companies to get investors to buy the deals.
Perhaps we could learn something from the Romans..