Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary

Structured Settlement Annuities Close to ALL TIME RECORD in 2022 Primary Market Production

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Structured settlement annuities had a RECORD 4th quarter of 2022, as increasing awareness of rising interest rates looking good against a volatile stock market, plummeting crypto and hard work by industry members, catapulted industry production to close to its all time record achieved in 2019.  The structured settlement primary market produced  $779.5M in December 2022 to end Q4 2022 with $2.075B in production. The total for 2022 was $6,037,899,790 according to industry sources.  The number does not included non qualified strucured settlement products.

1. The industry placed $2,090,161,453 of premium in Q4 totaling $6,037,899,790 for the year.

·        This represents an increase of $939,304,942 or +81.6% Q4 YOY

·        YTD this represents an increase of $1,807,552,714 or +42.7%

2. Industry case count totaled 5,979 in Q4, totaling 21,341 for the year.

·        This represents an increase of 1,526 cases or +34.3% Q4 YOY

·        YTD this represents an increase of 1,843 cases or +9.5%

3. Average case size was $349,584 in Q4, averaging $282,925 for the year.

·        This represents an increase of $91,139 per case or +35.3% Q4 YOY

·        YTD this represents an increase of $65,961 per case or +30.4%

How Structured Settlement Industry Was Affected in Covid Era

Despite a return to structured settlement production highwater mark to the north of $6B in 2018 and the all-time record in 2019, the  rapid deceleration in interest rates in the early part of the Covid-19 pandemic, together with court closures that constricted the supply line of cases coming up for trial, played a role in the drop in structured settlement industry wide production.  

Last updated February 19, 2023

Structured Settlement Annuities Are Not Tax-Free Insurance Contracts | Wait! What?

by Structured Settlement Watchdog

There is No Such Thing as a Tax-Free Structured Settlement Annuity

You may encounter the term "tax-free structured settlement annuity" on the Internet. Be mindful that there is no such thing. Don't worry annuitants, there is a tax exemption, but not exactly the way it's being presented in many cases by competent settlement practitioners and reputable settlement companies that should know better.

Examples:

• One settlement planner's website says "Structured settlement annuities are not taxable — they're completely tax-exempt"
• Another settlement planner's website says "Tax-free Income: 100% of structured settlement annuity is tax-free – including the settlement award, principal, ongoing payments and interest earned".
• "a tax-free structured settlement annuity to meet medical and living expenses, or other financial planning tactics".
• "A tax-free structured settlement annuity qualifies for special tax treatment under IRC §§104(a)(2) and 130(c)"
• "A claimant cannot accept a cash settlement and then purchase an income tax-free structured settlement annuity on his/her own"
• The best time to start preparing for your financial future is right now. Consider the many advantages of a Tax-Free Structured Settlement Annuity.*"
• " I work with the Tax Free Structured Settlement Annuity Product and Various Trust products"
  

The Damages That the Structured Settlement Payments Represent is The Key

While some of these statements may seem plausible, the nature of damages that the payments represent is a critical factor, not the annuity contract itself. 

Think about the applicable tax code sections cited in every settlement agreement that involves a structure.  The word "annuity" does not appear in IRC Sections 104(a)(2) or IRC 130(c). Furthermore, a structured settlement annuity is a versatile insurance contract that can be used for a variety of applications, including structured settlements being used as a funding vehicle for settlements involving periodic payment of taxable damages and structured installment sales. 

I encourage my industry colleagues to take greater responsibility, hopefully with the recognition that inaccurate statements end up getting parroted or cited by others.

See my comprehensive write up "What is a " Tax Free Structured Settlement Annuity?" on the Settlement News Network

Last updated April 8, 2023

 

Are Structured Settlement Annuities Taxable?

by John Darer CLU ChFC MSSC CefT RSP CLTC

“Is a structured settlement annuity taxable? And is the initial amount that I get from the settlement taxable?”, asks a settlement planning firm.

Here is their response:

"If the origin of the claim is based on a personal physical injury, Section 104[a][2] of the Internal Revenue Code states that the initial principal amount on the settlement that the client receives is not taxable. It is tax-exempt at the state, local, and federal levels. however, if the client decides to invest their settlement funds, then the interest that grows from the investment is taxable. One way to avoid this is to establish a structured settlement annuity for the client to receive their settlement funds. All of the interests (sic) that grow inside of the structured annuity will also be tax-exempt. Payments received from a structured settlement annuity do not need to be reported on any tax return form (1040) or any tax document. Both the principal amount and interests (sic) in the annuity are completely tax exempt".

Here's the thing...

1. The Internal Revenue Code is Federal tax code. While there may be state and local tax laws that are modeled after federal tax law, those are the dominion of the individual states or local governments and their respective departments of revenue. 
2. IRC Section 104 (a)(2) permits a taxpayer to exclude from gross income "the amount of any damages (other than punitive damages) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or physical sickness" Source: Internal Revenue Service irs.gov
3. The key take away is that it is the damages that are tax exempt. With a properly established structured settlement, that starts with an obligation to make future periodic payments as damages on account of personal physical injury, where the obligation is generally assigned by way of a qualified assignment, and then funded with a structured settlement annuity or structured settlement annuities as a qualified funding asset, each of the future payments is tax exempt.

 

Prudential Suspends Structured Settlement Rate Book Pricing Due to Extreme Rate Volatility

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Due to extreme interest rate volatility, Prudential Insurance Company of America has announced that it has suspended its structured settlement rate book

Prudential ad from 1909   Image: Wikipedia

pricing until further notice, effective March 6, 2020.

What Does This Affect?

Just new structured settlement quotes from Prudential from March 6, 2020.  

Why is This Necessary?

Insurers must have assets to match against liabilities under state insurance regulations.  Large volumes of business coming in under book rates present challenges that are increasingly difficult to manage when rates are shifting at warp speed.  It is actually smart risk mangement on the part of Prudential.

Is This Unusual?

Not at all, Berkshire Hathaway Life of Nebraska and First Berkshire Hathaway Life do not have a published rate book and use daily price quotes for everything.  Berkshire is usually there or thereabouts at the top of the production ladder for structured settlement annuity issuers along with others.

How long has Prudential Been in Business?

The Prudential Insurance Company of America  (PICA), based in Newark, New Jersey,  has been in business since 1875. 

As of September 30, 2019 PICA had $1.5 trillion is assets under management, $286 billion in admitted assets and approximately $4 trillion in life insurance in force worldwide. In January 2020 Prudential Financial was ranked the most admired life insurance company in the world by Fortune Magazine for the second consecutive year. As of year end 2018 it had over $831 Billon in assets.

 

 

 

What is A Structured Settlement Broker? Structured Settlement Broker 2023

by John Darer CLU ChFC MSSC CeFT RSP CLTC

What is a Broker?

A broker is a person who serves as a trusted agent or intermediary in commercial negotiations or transactions. Brokers are usually licensed professionals in fields where specialized knowledge is required, such as insurance, finance and real estate.

A structured settlement broker should hold one or more active insurance licenses and carrier appointments

A broker's rate of compensation (called brokerage or commission) is determined according to custom of the particular trade or by law, and is computed commonly either as a fixed percentage of the value of the transaction or on a sliding scale (higher the value, lower the percentage or the reverse).

Read more about What is a Broker? 

What is a Structured Settlement Broker?

A structured settlement broker is someone that holds at least an active life insurance license in one or more states and carrier appointments, who provides professional advice and places structured settlement annuities and other qualified funding assets. Structured settlement brokers may hold other professional licenses and provide settlement planning advice and placement of financial vehicles pursuant to their professional licenses.

How is a Structured Settlement Broker Compensated?

A structured settlement broker is paid by commission, either as a licensed and appointed agent of a life insurance company and/or as a licensed broker or producer. In a letter posted on the website of the New York Department of Financial Services, the Office of General Counsel opined that it would be unlawful for a licensed broker to pay a licensed agent who was not appointed by the annuity issuer.

Who Regulates Structured Settlement Brokers?

As a licensed insurance agent, licensed broker or producer, a structured settlement broker who places structured settlement annuities as part of the consideration for the release of legal claims, is regulated by the  laws of the states in which he/she/they are licensed. The states control the sales and solicitation process and have the power to fine, suspend or revoke licenses. The annuity issuer can pull appointments as well.

What is a structured settlement annuity?

A structured settlement annuity is a contract issued by a life insurance company,  the primary use of which is as a qualified funding asset to fund obligations to pay future periodic payment obligations under a settlement agreement and pursuant to a qualified assignment agreement.  Qualified assignment agreements are governed by the rules set forth in IRC Section 130.  In rare circumstances, where are future periodic payment obligations are unassigned, the structured settlement annuity may be owned by the Defendant or its insurer.  Structured settlement annuities can only be placed by individuals and entities (1) holding an active life insurance license and (2) appointed/authorized by the annuity issuer for structured settlement annuities. Read more about structured settlement annuities 

Can a structured settlement annuity be sold?

No, a structured settlement annuity cannot be sold. A structured settlement annuity purchased as a qualified asset is owned by a qualified assignment company. The terms of the settlement agreement when the structured settlement was established do not grant the annuitant any ownership interest in the annuity contract. Only the rights to the structured settlement payments may be sold, subject to the structured settlement protection act in the state of domicile.

Is JG Wentworth a Structured Settlement Broker?

No, simply buying an expensive Google paid ad does not make an individual or company a structured settlement broker.   It has been observed that JG Wentworth also uses the term structured settlement consultant in its Google paid ads for JG Wentworth or its other entities that buy people's structured settlement payment rights for pennies on the dollar. 

Last updated January 20, 2023

 

Who Owns a Structured Settlement Annuity?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Who Owns a Structured Settlement Annuity?

The majority of structured settlement annuities are owned by qualified assignment companies not the payees of the structured settlement.  The structured settlement annuities are purchased as a qualified funding asset subject to the terms of IRC 130(d). All structured settlement annuities used to fund taxable damages or attorney fees purchased are purchased by a non-qualified assignment company as part of a non-qualified assignment. As such they may be owned by a company specializing in non-qualified assignments.

A case in point would be American General Life Insurance Company and United States Life Insurance Company in the City of New York, subsidiaries of Corebridge Financial (formerly AIG Life & Retirement), which use AGL Assignment Company LLC for non qualified assignments. Where a qualified assignment is to be utilized, American General Annuity Services Corporation is the qualified assignment company. Another example is Independent LIfe Insurance Company which uses different assignment companies for qualfied and non-qaualified assignments,

In the case of MetLife Assignment Company, Inc, MetLife's assignment company owns structured settlement annuities funding both tax-exempt and taxable damages. 

Merchants of Factored Structured Settlement Payment Rights/Receivables Often Get It Wrong

Merchants of factored structured settlement payment rights mislabel factored structured settlement payment rights to prospective investors and to financial advisors, who may then market the mislabeled receivables to investors incorrectly as annuities.

Immediate Annuities (Dot) Com, a New Jersey broker of structured settlement payments and one of several companies that conducts such business using the debunked label Secondary Market Annuity, which is not an annuity at all.  

Immediate Annuities (dot) com states, inaccurately, that  "A Secondary Market Annuity (also called an 'SMA') refers to a transaction in which the current owner of an income annuity sells his future income steam to a third-party in exchange for a lump-sum payment. Annuity income streams most commonly originate from lawsuit settlements, lottery winnings, or immediate annuities".

Immediate Annuities (dot ) com is not correct because it inaccurately suggests that a structured settlement payee is the owner of the income annuity funding a structured settlement. In fact, nothing could be further from the truth when it comes to structured settlement ownership.

It's hard to believe that Immediateannuities.com continues to use the debunked term "Secondary Market Annuity" or its plural "Secondary Market Annuities" when

1. The National Association of Insurance Commissioners does not recognize acquired structured settlement payment rights as annuities or insurance product.  See Statutory Issue Paper No. 160, which was finalized April 6, 2019.
2. There is no protection for investors in the event of insolvency in the 37 states that have adopted the 2017 Revisions to the Life & Health Guaranty Associations Model Act (#520). Investors should not feel comfortable in the 13 states that have yet to adopt, because the Model Act has a reach back provision that applies to such acqusitions before or after the adoption of the 2017 Revisions in a state.
3. Past and ongoing litigation that in some cases HAS resulted, and in pending cases MAY result in losses for investors in structured settlement payment rights. 

Read the Settlement Agreement and Release!

A settlement agreement establishing the structured settlement will expressly state that the assignment company has all rights of ownership of the annuity. The structured settlement payee only owns the right to receive payments. The payee does not own the structured settlement annuity. It is the structured settlement payment rights that are transferable as long as the transaction complies with state and Federal law.

Last updated November 5, 2022

 

 

New Domestic Non Qualified Structured Settlement Option Coming in January 2018.

by John Darer CLU ChFC MSSC CeFT RSP CLTC

MetLife will offer a domestic non qualified structured settlement option for employment, environmental, breach of contract and other types of taxable damages in early 2018. The underwriting company will be Metropolitan Tower Life Insurance Company. Full details to follow during the roll out which expected in or about mid-January 2018.

Metropolitan Tower Life Insurance Company Structured Settlements

MetLife announced on May 3, 2017 that Metropolitan Tower Life Insurance Company  ("MetLife Tower Life"), a Delaware company and wholly owned subsidiary, would become the primary underwriting company for structured settlement annuities.  Metropolitan Tower Life was the successor-in-interest to Metropolitan Insurance and Annuity Company ("MIAC)" that was the qualified assignment company used by MetLife structured settlements  until about 13 years ago. At the time it was announced April 26, 2005, MetLife stated that "structured settlement annuities in-force and/or issued prior to December 1, 2004 are the responsibility of Metropolitan Tower Life Insurance Company", which held an A+(Superior) rating from A.M. Best as it does today, with a current size category XV.  The company is rated Aa3 (High Quality) by Moodys.

Under the qualified assignment program, MetLife Assignment Company Inc., (MACI) is the qualified assignment company.  Upon information and belief the MACI facility will be expanded to take on non qualified structured settlement cases. The periodic payment obligations assigned MACI are guaranteed by Met Tower Life under an Evidence of Guarantee.  With $4B+ in assets, Metropolitan Tower Life is a considerably smaller underwriting company in terms of assets than Metropolitan Life Insurance Company. It does however have a strong surplus position of 16.5% of general account assets and a Comdex rating of 96, that exceeds Metropolitan Life Insurance Company  [Source: Vital Signs].  

Read more about Non Qualified Structured Settlements |  Using Structured Settlements to Help Resolve Taxable Damage Lawsuits

 

Independent Life Insurance Company | Structures Only Life Insurer New Structured Settlement Option

by John Darer® CLU ChFC MSSC CeFT® RSP CLTC

Independent Life Insurance Company is a new structured settlement annuity provider, in creation for four years, that has been designed with valuable input from structured settlement industry leaders.

Introducing a new structured settlement annuity issuer run by seasoned professionals

Independent Life Insurance Company is exclusively focused on providing annuities for the structured settlement market. As a newly formed and capitalized life insurance company, Independent Life does not have legacy structured settlement annuities on its books with pricing out of alignment with today’s low investment environment, factors which contributed to certain companies leaving the structured settlement marketplace in the last decade.

A formal announcement will be made in San Antonio during the Fall Meeting of the National Structured Settlements Trade Association the week of October 18, 2017 with an opportunity to meet the Independent Life executive team:

• James D. Atkins, Chief Executive Officer 
  
• Donald J. Herrema, Chief Investment Officer
• Daniel P. Durbin, VP of Marketing and Sales
• Patrick J. Hindert, VP of Business Development
• Christopher M. Bua, VP of Internal Sales

Independent Life's structured settlement value proposition is:

• Annuities only for the structured settlement market
• Comprehensive medical underwriting for qualifying cases
• Competitive upper-tier pricing
• Unparalleled service and support
• Ongoing financial support for broker and planner initiatives that promote the growth of our industry for the benefit of all stakeholders
• An executive team with previous structured settlement experience totaling over 100 years in marketing, sales, training, and annuity pricing
• Domiciled in a major state with an excellent regulatory reputation

Who is James D. Atkins?

James D. Atkins is the Chief Executive Officer of the Independent Life Insurance Company. Atkins is the former CEO of Legal & General America. Prior to this position Atkins spent 25 years under the GE Financial Services umbrella (First Colony Life Insurance, GE Financial Assurance, and Genworth). During this time he acted in a variety of capacities including the roles of Chief Actuary and Capital Markets Leader. When he joined First Colony it was new in a fledgling structured settlement niche. During his tenure First Colony became one of the largest writers of structured settlement annuities. At its peak First Colony managed in excess of $10 Billion of Structured Settlement contracts. Atkins has broad relationships with the leading reinsurance companies active in the U.S. market and is an experienced insurance company  executive.

Who is Donald J. Herrema?

Donald J. Herrema is the Vice Chairman and Chief Investment Officer for Independent Life. Mr. Herrema held a variety of senior leadership positions including being CEO of several, in asset and wealth management, banking, mutual funds, banking and real estate. He began his career at Wells Fargo Bank in his native California, rising through the ranks to become President of Wells Fargo Securities and Head of Mutual Funds. Moving to New York City, Don joined Bessemer Trust, becoming COO and then CEO, leading a period of strong growth in revenues and profitability. Later, he was the Founder, Chairman and CEO of Atlantic Trust, now a subsidiary of CIBC (Canada). Additionally, Don served as Managing Director and Head of Private Wealth Management at Morgan Stanley. He culminated his active working career as Executive Vice Chairman of Kennedy Wilson, a NYSE listed global real estate firm.

Mr. Herrema's Director and Advisor roles include being Independent Chair and Director of TD Bank's US Mutual Funds, Independent Director of AbelNoser Holdings LLC., Independent Director of Lepercq, de Neuflize (both New York City and Luxembourg), Advisor to the Board of Fund Evaluation Group, Senior Advisor at Stone Point Capital, Past President of the Bank Securities Association, Independent Director of Cedars Bank, and an Advisory Board member of Education Equity and NYPPEX.  [ Source:  LInkedin]

Who is Daniel P. Durbin?

Daniel P. Durbin is Vice President of Marketing and Sales for Independent Life. Durbin is a former lead national sales manager of Allstate Life’s structured
settlement division. In this role, he was responsible for relationships within a distribution channel of structured settlement agencies and their independent contractor producers. Allstate’s structured settlement annuity distribution channel produced in excess of $3 billion of premiums during his tenure at Allstate Life. Durbin is also a former structured settlement broker and a former Director and President of the National Structured Settlements Trade Association

Who is Patrick J. Hindert?

Patrick J. Hindert is Vice President of Business Development for Independent Life. Hindert has been a leader in the structured settlement industry since 1977. He previously served as President of Benefit Designs, a national structured settlement intermediary, which he owned and managed for 22 years. He has also served as President of the National Structured Settlement Trade Association (NSSTA) and as Executive Director of the Society of Settlement Planners (SSP). Hindert is co-author of Structured Settlement and Periodic Payment Judgments, a legal treatise updated semi-annually since 1986, which is utilized by NSSTA and SSP in their certification programs. Hindert previously authored the blog “Beyond Structured Settlements” and has been a frequent speaker at national conferences sponsored by NSSTA, SSP, NAMSAP, ASNP, NASP and NAELA. Hindert served as keynote speaker at the first national structured settlement conference in Australia in 1994. He provided expert testimony to the United States House Ways and Means Committee in 1981 prior to enactment of the Periodic Payment Settlement Act of 1982.

Note: Independent Life Insurance Company is not related to Independent Life & Accident, of Jacksonville, which was merged into American Genera Life Insurance Company in 1997.

 

 

 

 

New York City Structured Settlements 2022 | Structured Settlement Annuities in NY State

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

Last updated February 13, 2022

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

The onerous acceleration provision for late payments in Articles 50A and 50B is the primary reason for why only three carriers write structured judgment annuities in New York.

Periodic Payment Reinsurance is available through National Indemnity Company (Berkshire Hathaway).

Structured settlement annuities are only offered through appointed structured settlement managing general agencies by their insurance licensed employees, or through affiliated insurance licensed independent agents and brokers.

Current as of July 3, 2022

Note that structured settlements can also be funded with United States Treasury Obligations. Market based options are also available.

What You Need To Know About Structured Settlement Quotes in New York

Structured Settlement quote form online.

Click left or call 646-849-1588 for New York City structured settlement quotes, employment structured settlement quotes, divorce structured settlement quotes, periodic payment reinsurance structured sales quotes for business installment sales and real estate installment

New York Structured Settlements

 

by John Darer CLU ChFC CeFT MSSC RSP CLTC

 

Which New York life insurance companies issue structured settlement annuities to fund New York structured settlements in Bronx, Brooklyn (Kings), Queens, Staten Island (Richmond) and New York (Manhattan), Nassau, Suffolk, Westchester, Orange, Putnam and Rockland Counties in 2022?

 

New York City Sunset

These insurance companies are the primary issuers of structured settlement annuities for the New York City area to fund NY personal injury, NY medical malpractice, NY wrongful death, auto accident, NY workers compensation settlements and to fund Structured Medicare Set Asides in 2022.

1. First Berkshire Hathway Life Insurance Company Home Office: Flushing, NY
2. Metropolitan Life Insurance Company   Home Office: New York, NY
3. Metropolitan Tower Life Insurance Company Home Office: Wilmington, DE
4. New York Life Insurance Company Home Office: New York, NY
5. Pacific Life and Annuity Company   Home Office: Newport Beach, CA
6. The Prudential Insurance Company of America Home Office: Newark, NJ
7. United States Life Insurance Company in The City of New York Home Office: New York, NY
8. USAA Life Insurance Company Home Office: San Antonio TX (where parties consent to using non admitted carrier)

Cases in surrounding counties such as Fairfield County, CT and Bergen County, NJ would substitute, Berkshire Hathaway Life Insurance Company of Nebraska, Pacific Life Insurance Company and American General Life Insurance Company for numbers 1, 6 and 8 respectively. Please note that a limited number of insurance companies underwrite structured settlements compared to other types of annuities.

For New York cases that go to a structured judgment, pursuant to CPLR Article 50A or Article 50B, the following of the above structured settlement annuity issuers will write annuities to fund 50A or 50B structured judgments:

 

1. Metropolitan Life Insurance Company
2. Pacific Life and Annuity Company
3. United States Life Insurance Company in The City of New York

What Factors Affect Structured Settlement Annuity Rates? Structured Settlement Users Guide

by John Darer® CLU ChFC MSSC CeFT RSP CLTC

Here are primary factors that affect the structured settlement annuity rates.  

Putting together the structured settlement jigsaw puzzle for you

1. DATE OF BIRTH (If Lifetime Benefits are being considered)

The cost per $1,000 of payments for life is less expensive at the older ages

2. RATED AGE

A review of medical records by a medical underwriter for a life insurance company that (1)  issues structured settlement annuities and (2)  issues rated ages assigns an older age to you for pricing purposes and this lowers the cost per $1,000 or boosts the yield per $1,000 cost on lifetime benefits for that annuity issuer.  The rated age assigned may vary from company to company. A higher rated age does not automatically translate into higher benefits. A rated age does not affect the cost of benefits that are paid for a fixed period certain.

3. LENGTH OF CERTAIN PERIOD

Life contingent payments are only paid if you are living. Certain payments will be paid whether or not you are living when a payment is due. So if you choose a 30 year certain and life, payments will be made for the rest of your life or 30 years, whichever is longer. You can choose how long or short you want. A longer certain period means you receive fewer payments while you are alive, but means you may leave more to your beneficiary if you die before the certain term is over.  If you are young the adjustment is fairly modest. At older ages the spread can be more significant. In some cases a multiple product arbitrage can make a difference  (contact me for details).

4. THE USE OF ANNUAL INCREASES

Increases have a meaningful effect on the amount of payments you initially receive but if you are willing to wait, it can pay out more over time.  That is balanced against your needs and wishes now since you must be willing to accept a lower starting amount when compared to level payments.. It's important to do a cross over comparison so that you can see how long it will take for payments on the increasing option to (1) exceed the level payments and (2) how long it will take for the aggregate payments from the increasing plan to exceed the aggregate payments on the level plan.

5. DAILY RATES

Many companies offer daily rate pricing which may or may not be better than their general pricing.  The threshold for offering daily rates varies by company.  One company only offers daily rates.  Note that daily rates are typically good until the end of the business day quoted however, some carriers will give a nominal additional amount more time, for example to the next day or in one case 2 days.

6. INSURANCE COMPANY PREMIUM LIMITATIONS

Some companies have low premium limitations before they require daily rate pricing which for them may be worse. 

7. DIVERSIFICATION

Diversification is a good idea, but it may impact the price/yield due to variations in price between insurance companies.   We have longstanding relationships with the leading insurance companies that underwrite structured settlements.

     8. PUTTING TOGETHER “THE JIGSAW PUZZLE”

Sometimes we can get a better price by combining two or more companies by their strengths. One  life insurance company issuing structured settlement annuities may be better for earlier payments and another for later payments. One may handily beat the competition for premium up to $1,000,000.

Sometimes there are unique considerations  (1) some companies will not participate unless you have a US tax ID number (2) some companies will not mail payments to another country (will require US bank deposit account) (3) taxable damages case have options in a more limited universe.

A SIMPLE WAY TO DEAL WITH THE STRUCTURED SETTLEMENT PRICING VARIABLES

1. Consider if stable income important to you?   If yes...
   
2. Consult a structured settlement expert. 
   
3. Review current sources and uses of funds, determine where the gaps are.
4. How much stable income do you need each month?  Or quarter or year?
   
5. Do you want to provide for beneficiaries?
6. Review and select a plan design
7. Explore diversification options with structured settlement expert.
   
8. Your structured settlement expert will daily rate shop.

Note that a structured settlement is a core settlement planning tool or option. There may be other important considerations. Always work with someone with proper credentials and experience.

 Other related information that may be helpful

Types of Structured Settlement Payments