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Certified Structured Settlement Consultants Should Elevate the Profession

by Structured Settlement Watchdog

I was highly disappointed to see fellow Certified Structured Settlement Consultant Tory Owens fumble his attempt to explain a structured settlement in a promotional YouTube video. 

Says Owens according to the transcript:

"There was a tax code passed by the IRS called 104( a)(2 )that allows for all of the annuity payments to be tax-free and that also includes the compound interest that that annuity earns yes the compound interest is also tax-free and guaranteed what's better than that if you ever have any more questions feel free to reach out to me because we're in this together"

6 Ways That Tory Owens Was Deficient in His Explanation of Structured Settlements Posted on YouTube  (as of March 10, 2021)

1. The Internal Revenue Service (IRS) does not pass tax codes.  The IRS enforces the tax laws
2. In the United States, the Congress passes the Federal tax laws subject to the powers granted in the United States Constitution. Article I, Section 8, Clause 1: "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States". 
3. IRC 104(a)(2) is not a tax code, it is a section of the tax code, specifically the Internal Revenue Code of 1986, as amended.  It is comprised of only a few sentences. In contrast, according to a 2015 article by Scott Greenberg, published at TaxFoundation.org, the tax code is over 10 million words long. This figure includes the federal internal revenue code (2,412,000 words long) and federal tax regulations (7,655,000 words long). It does not include the substantial body of tax-related case law that is often vital to understanding the tax code. 
4. IRC 104(a)(2) is a tax exemption under the code that says "Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include— 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 physical injuries or physical sickness;
5. The word "annuity" does not appear in IRC 104(a)(2). The word annuity appears in IRC 130(d)  which defines the term " qualified funding asset". It's important to understand the interplay between these two code sections to have a true appreciation of how structured settlements work
6. The term "compound interest" does not appear in IRC 104(a)(2).

A settlement planner who uses a professional credential in advertising but cannot articulate structured settlement fundamentals, diminishes the value of the credential by unacceptably lowering the standard, in my opinion

It's up to other holders of the same credential to maintain a high bar and to call them out to "know your "sh^t!"   After all, as Owens likes to say "we're in this together".

Owens appears to be a glib, fun loving guy who on the same YouTube Channel shows that he can hob nob with lawyers from the Consumer Attorneys Association of Los Angeles on a private jet, drinking and getting sprayed with champagne.  May he raise the standard in the future and, if he chooses, raise a glass while he's at it.

 

The Boomers Ruined Everything | Lyman Stone's Outrageous Judgment About Professional Licensure

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Strict licensing rules make existing workers richer by reducing competition in their fields asserts Lyman Stone, a research fellow at the Institute for Family Studies (Stone blames Baby Boomers). And while some industries clearly need licensing rules for health and safety reasons  he says, most of the growth in licensure has been in fields where health and safety justifications are less salient: Do you really need hours of course work and special exams to be a florist, an interior designer, or an auctioneer?

By privileging existing workers, writes Stone,  "licensure rules increase income inequality, and they do so specifically by shifting income toward older workers. When licensure standards exclude felons, they also disproportionately affect minorities. Young people, and especially minorities, are increasingly being legally prohibited from work".

I received my first professional insurance licenses in New York and Connecticut at age 21 and my first securities license at age 22. 

Lyman Stone obviously has not studied the structured settlement secondary marketplace in which:

• There is no licensing standard. There is no way to measure even basic core competency, knowledge of state laws related to the profession, to exclude felons. and to deal with the hundred of on registered aliases used by some of the companies those associated with them.
• There is no means to  fine, suspend or revoke licenses.
• There is no way for consumers to seek redress without it taking years.
• There is no requirement to carry professional liability insurance.
• Investors in factored structured settlement payments streams have lost their money or are in jeopardy of losing all of their investment in what was touted as extremely safe.
• In most states where structured settlement factoring companies do business without first registering to do business with the Secretary of State when they solicit business from citizens of that state
• Many such unlicensed companies are holding themselves out using terms that implies credentials when those making the claims do not possess them. 
• Many such unlicensed companies operate using multiple fictitious names making it difficult for people to know who they are dealing with. 
• Richart Ruddie, a millennial from Owings Mills Maryland and Ft Lauderdale Florida, associated with a series of companies banned from doing business in Maryland for 7 years for fraud, had to plea bargain with the Rhode island District Attorney for filing bogus Court  documents featuring fictional defendants for his reputation management business, that transmitted documents to a process server using one of the banned company (AnnuitySold)  emails.
• On November 9, 2022 Raffi Boghosian, Charles E. Smith, Jr and Anuj Sud, minorities, were convicted of structured settlement theft. Most of the victims were minorities. 
• Two unlicensed entities who attempted and may have instigated pennies on the dollar sale of assets using investment projections which wouldn't have passed securities regulators.
• There have been Pennies on the dollar asset liquidations to place in unsuitable investments such as in a rap star's record. Any of the victims of the structured settlement secondary market are disproportionately young minorities, the very people that Lyman Stone is trying to give opportunity, who are targeted  and then ripped off by unlicensed sales people who are dispensing awful financial advice.  One unlicensed company referred to selling a structured settlement ( for literally pennies on the dollar)  as a windfall.
• A convicted felon named Todd Dyer was in the process of setting up a purported marketplace called Income Stream Exchange (for the exchange of structured settlement payments rights)  when he was convicted and sentenced to 15 years for another fraud.

It's not so clear what research Lyman Stone performed to form his opinion that course work and special exams to be a florist, an interior designer, or an auctioneer are less salient. Licensing standards not only benefit consumers but employers as well.  Frankly if I'm spending money do re-do my kitchen I want someone who knows what they are doing.  And do you want someone putting a straight edge razor to your throat to shave you without a license? The fees charged help fund the cost of administration.

Last updated December 7, 2022

 

 

 

 

 

What is A Certified Structured Settlement Consultant?

by John Darer® CLU ChFC CSSC MSSC CeFT RSP CLTC

John Darer reviews the Certified Structured Settlement Consultant professional designation.

What is a Certified Structured Settlement Consultant?

Certified Structured Settlement Consultant, also known by the acronym CSSC, is a professional designation or credential that is earned as the result of successful completion of a professional credentialing program established by the National Structured Settlements Trade Association (NSSTA) in conjunction with the University of Texas at Austin.

Where is CSSC Training Held?

The CSSC training program has been hosted at the University pf Texas at Austin (since 2023). Previously the CSSC program was held at the Stayer Education Center, at the University of Notre Dame in South Bend Indiana. NSSTA has been awarding the CSSC to NSSTA members who qualify since 1994.

John Darer, President of 4structures.com LLC in Stamford CT earned his CSSC in 1995, the third of his 8 professional designations.

What Does It Take To Be A Certified Structured Settlement Consultant?

A Certified Structured Settlement Consultant should possess the fundamental body of knowledge required for success in the structured settlement profession having completed more than 60+ hours of study, having met a work experience requirement and having successfully passed a comprehensive examination.

Advanced Structured Settlement Consultant Credentials Available

An advanced structured settlement professional designation, the Master Structured Settlement Consultant (MSSC), was established in 2014.

I have been a Certified Structured Settlement Consultant for almost 30 years and was one of the first 25 members of the structured settlement industry in the inaugural 2014 Master Structured Settlement Consultant certification class who earned the MSSC designation.

Last updated August 22, 2024

4structures.com LLC AM Best Recommended Structured Settlement Expert 2016 | 4th Consecutive Year

by John Darer®, CLU ChFC MSSC RSP CLTC

A.M. Best has named 4structures.com LLC a Recommended Structured Settlement Expert Service Provider for 2016, the 4th consecutive year that it has earned the BestMark.  As part of its screening process A.M.Best asked for and independently validated 8 client references, people who had actually done structured settlement business with 4structures.com LLC.  Furthermore, only professionals whose credentials have been verified by A.M. Best receive the BestMark.

The independent validation and the number of required references and credential verification is  is what sets A.M. Best apart from many other commercial review sites, that can be manipulated.

A.M. Best Company started out in financial reporting in the 1899 and has grown to more than 50 publications and services that meet the diverse demands of the ever-changing insurance industry. Today, more than 400 analysts, statisticians and editorial personnel are dedicated to providing the insurance industry with the most complete, accurate and up-to-date financial and operating information.

Touchdown Notre Dame For Master's Structured Settlement Certification (MSSC)

by John Darer CLU ChFC MSSC RSP CLTC

The Stayer Center for Executive Education at the University of Notre Dame hosted the inaugural class of NSSTA's Master's Structured Settlement Certification (MSSC)' an advanced credential,  at its campus in South Bend, Indiana October 15-18 2014.  I was one of the candidates in attendance in a class that was composed of a select group of the most experienced members of the structured settlement industry. Most attendees had at least 15 years of experience with many  having in excess of 20 or more years of experience as structured settlement consultants or insurance company executives associated whose companies underwriting annuities or purchasing structured settlement annuities to help settle claims

It's always good to reinforce that what you do really works and the kick off session did just that with "A Family Affair | The Settlement Success Highway", featuring the remarkable success story of Cody Shively.  What structured settlement consultants and settlement planners do is about real people. It was meaningful to see and hear his story, including among other things, how our core financial solution and associated settlement planning  positively affected this impressive young man who has come such a long way and achieved so much from a time when he was clinically dead from injuries sustained in a bus accident.  The program was especially strong in that it shares, in real time, the experience through the respective lenses of Cody Shively, both his mother and father, the financial advisor and the settlement consultant.

The MSSC program featured a series of presentations by tax and economic experts, including  Jeff Kummer Director of Tax Policy, Washington National Tax Deloitte Tax LLP,   Mark Alan Prater  Chief Tax Counsel for the Senate Finance Committee and Michael Pries Associate Professor of Economics University of Notre Dame and Michael Montemurro, branch chief of the Office of Associate Chief Counsel (Income Tax & Accounting) of the IRS.  Montemurro's presentation was especially engaging in an audience participation talk show format featuring Hogan Lovells' partner John Stanton as host.   One cannot underscore enough, the invaluable benefit of being able to personally interact one on one with an important lawyer whose IRS branch works on issues concerning whether the payments that  taxpayers receive are gross income or can be excluded from income under current tax law, including IRC 104 and IRC 130 as well as issues related to structured settlement factoring transactions in IRC 5891.

Further curriculum included sessions on The Psychology of Grief featuring Dr. Leo Flanagan Managing Director of the Center for Resilience in Stamford CT and Sudden Wealth Syndrome featuring Robert Pagliarini a wealth advisor from Mission Viejo, CA. As a member of the Sudden Money Institute and a Sudden Money Advisor, I have great interest in these topics and the deeper relationships and increased effectiveness that results from being knowledgeable in these areas. There was an excellent pre-read text entitled The Psychology of Disability that should be a must-read for anyone with a settlement consulting practice.

One of the most useful and entertaining sessions was the lecture and Harvard negotiation simulation led by  Dr. Rita Kosnik Professor of Management and Negotiations at Trinity University in San Antonio, TX.  The energetic and spunky Dr. Kosnik has developed and planned seminars on Advanced Negotiations for among other places, the United States Army Senior Executive Education Program.  So "generally" speaking we had to be on our toes!  Attendees were given a legal case to review and then assigned a role within the case that could be claims adjuster, plaintiff attorney or plaintiff and a time limit to attempt to negotiate a settlement.

Another very useful session was Karen Meyer's presentation on the Affordable Care Act.

The ethics session led by Father Oliver Williams was also very engaging. Father Williams is very good at what he does and in my opinion was as engaging as when I met him 19 years ago at the ethics session that was part of the  Certified Structured Settlement Consultant certification program.

The on-campus sessions may be over, but MSSC candidates are required to produce a 15 page academic paper on a structured settlement/settlement planning related topic.   I am in favor of the paper assignment because it forces the candidates to dig deep and research facts that serve a dual purpose.  The research and presentation of the paper will elevate the body of knowledge of the MSSC candidate as well as increasing the library of knowledge for the structured settlement industry to pass on to clients and to generations to come. 

The recent session was worth the price of admission in my opinion and with a few tweaks, could be improved to add even more value.

Image: © Brentmelissa | Dreamstime.com - Touchdown Jesus Photo

 

 

Settlement Broker Misrepresents "He Attended the University of Notre Dame"

by Structured Settlement Watchdog®

Does taking a 4 day professional designation course sponsored by your trade association count as attending the University of Notre Dame?

Apparently a structured settlement industry veteran holds himself out in this manner even today February 11, 2014, in contravention to the facts about the designation long posted on NSSTA(dot)com, the website of the industry trade association.

The structured settlement broker's behavior is at best an embarassment to the industry,  at worst unethical , possibly violates NSSTA's bylaws and possibly violates state insurance advertising laws. It makes a mockery of those past and present who academically earned the right to attend University of Notre Dame through scholarships or pay its tuition.  It also demeans the value of the CSSC designation itself for those who accurately promote it because of their association with the errant colleague.

The National Structured Settlements Trade Association (NSSTA) expressly states on its website that the industry's professional designation program is the NSSTA CSSC program and "by hosting the NSSTA CSSC Program at Notre Dame, one of the most recognized institutions of higher learning in the world, participants have an opportunity to learn together and build lasting relationships that will last throughout their careers".  

I've long recommended that structured settlement advice be sought solely from those with proper financial credentials, however those with credentials should not be permitted to exaggerate and mislead consumers of their services about the credentials they have.

Because I care about the structured settlement industry and what it represents,  I began  in October 2007 with 4 Days in the Vicinity of Touchdown Jesus Does Not make You One of The Fighting Irish,  calling out people in my  industry who misrepresented the CSSC designation, including in 2009, certain NSSTA Board members. In 2009 It was observed that some industry participants were even making the ludicrous claim that the 4 day NSSTA CSSC course was part of an Executive MBA program. At the present time a large selection of members of the firm of the current NSSTA President state on the website of the firm, that  they have earned  the professional designation from The University of Notre Dame, or Notre Dame University (which is actually a Lebanese university that does not host the NSSTA CSSC program at all), with no mention of NSSTA.

At what point does it become necessary to start informing state insurance regulators? If this was the securities industry, or West Point Academy,  the answer would be easy, you have a duty to inform.

Perhaps NSSTA could enforce its own guidelines and suspend the authority of those who have earned the designation if they do not promote it within the guidelines.

 

 

NSSTA Structured Settlement Mastery Course Lifts off in October 2014

by John Darer CLU ChFC CSSC RSP CLTC

After several years of anticipation,  the National Structured Settlements Trade Association (NSSTA) will be introducing an advanced level professional designation program in the Fall of 2014. The advanced program will be open to existing holders of the Certified Structured Settlement Consultant (CSSC). Like the CSSC, the advanced level designation, Master Structured Settlement Consultant (MSSC) will be offered by NSSTA, in conjunction with the Executive Education team at the University of Notre Dame. Preliminary information suggests that the curriculum will be comprised of a 3 day curriculum in South Bend Indiana followed by a project.

This is a positive development for NSSTA and those served by its members and a testament to the hard work of the NSSTA Education Committee.

 

 

 

 

 

Defense Structured Settlement Company | Defense Only?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Is it necessary for a structured settlement consultant to be defense only, or plaintiff only, to be effective to meet your needs?  Is it not more important that the structured settlement consultant be a credentialed expert, with experience in his or her field?

One of my industry colleagues from California has just registered the domain name defensestructuredsettlement.com and on another website is taking at least a decade old sales pitch to plaintiff lawyers, to defense lawyers and adjusters (i.e. why you need a exclusively oriented structured settlement broker).  How ironic it is that the owner of defensestructuredsettlement.com, structured settlement broker, Jeff Anderson, is listed on the roster of Settlement Planners, Inc., which states on its website as of this morning:

"In all other aspects of a personal injury case, you call in experts to support your position or counter the defense. Why would you then hand your client over to the opposition (or their agents) when it comes time to plan and structure their settlement?"

"Historically, the defense has structured the settlement in a personal injury case. In many of those cases the interests of the defendant were served over the needs of the injured plaintiff. No longer. At Settlement Planners, the plaintiff comes first. We are solely retained by the injured party to create settlement plans that are tailored to meet the needs of your client. Not the defendant".

It is also ironic considering that the head of Jeff Anderson's brokerage is known to do both plaintiff and defense work. in California. 

Mr. Anderson is an industry veteran of over 20 years. In my opinion his approach [and that of a few others with a similar bent] of "exclusive orientation" makes for nice marketing, but is meaningless in reality.

While both parties benefit from and should have a professionally credentialed structured settlement expert, if I was a claims adjuster or attorney I'd seek out the best expert I could find. That being said the structured settlement business is, and always has been a relationship business and trust is something that must be earned over time, through experience.

 

 

 

 

 

 

 

 

Chartered Special Needs Consultant™ Designation Rolls Out

by John Darer CLU ChFC CSSC RSP CLTC

The Chartered Special Needs Consultant™ professional designation program is finally rolling out from The American College!  I just enrolled today on the website of The American College Bryn Mawr PA.

The Chartered Special Needs Consultant^™ provides financial professionals with the technical, collaborative, and quantitative skills necessary to help clients with special needs. The ChSNC^™,  is exclusive to The American College, is a new program designed to provide people with disabilities and other special needs with a more competent advisor. Financial planning professionals who want to take their existing expertise and apply it to this curriculum to enhance the quality of life of families with special needs.

The curriculum requires two self-study courses with proctored exams, followed by a three-day residency, with reading requirements prior to attendance. Successful completion of this course requires a graded project and presentation, and written examination.

The ChSNC^™ requires an extensive and multi-disciplinary background. All Students entering into the program must hold a CLU^®, ChFC^®, CFP^®, PFS credential, or master's degree in financial planning (or equivalent areas of study). That robust planning foundation is expanded through the specialized content of three courses, which narrow and sharpen their focus on the needs of people with disabilities and other special needs.

I encourage my fellow settlement professionals that qualify, to enroll in the ChSNC program and help raise the bar in the settlement industry.

Structured Settlement Brokers Should Not Mischaracterize Professional Credentials

by Structured Settlement Watchdog®

Structured settlement brokers who cite an industry certification program (that DID NOT require matriculation at the University of Notre Dame) as if they attended the University of Notre Dame are misleading.

Examples found on the Internet

A.  from Linkedin profile of a structured settlement broker from Texas

"University of Notre Dame - Mendoza College of Business

CSSC, Tax, Annuities

2004 – 2004"

B.  from a LinkedIn profile of an individual associated with the firm of an executive officer of NSSTA 08/17/2013. 

"CSSC, Insurance Law

2009"

In fact, at the time of publication, a startling number of the associates of the structured settlement firm of the NSSTA executive officer make no mention of NSSTA in connection with the CSSC on their profiles on that firm's website. Some listings even cite the incorrect university where the CSSC was hosted.

What is a Certified Structured Settlement (CSSC) ?

The National Structured Settlements Trade Association (NSSTA) Certified Structured Settlement Consultant (CSSC)** is the industry’s oldest and most respected designation, establishing educational standards for structured settlement professionals throughout the nation. NSSTA reports that "nearly 550 structured settlement consultants have earned the distinguished CSSC designation". The program, developed in conjunction with the University of Notre Dame, consists of more than 80 hours of classroom and study culminating in a comprehensive examination. 

The important point to note is that the CSSC is a non-matriculating certification program and that NSSTA confers the designation. 

My advocacy on this seemingly simple point began in October 2007

4 days in the vicinity of "Touchdown Jesus" DOES NOT make you one of " The Fighting Irish"!   October 18, 2007

**NSSTA itself DOES NOT use University of Notre Dame (or the inaccurate Notre Dame University) in its promotion of the Certified Structured Settlement Consultant (CSSC) Professional Certification Program!