by Structured Settlement Watchdog
A Qualified Assignment and Release which includes the following, raises more questions than answers. If you see one it probably deserves a second opinion.
QUALIFIED ASSIGNMENT AND RELEASE
Assignor:___________________ Qualified Settlement Fund, ( QSF may be adminstered by company related to settlement planner)
Assignee: Qualified Assignment Company related to the settlement planner.
Qualified Funding Asset: Annuity
Issuer of Qualified Funding Asset : Metropolitan Life Insurance Company
12. In exchange for "legal payment rights" pursuant to 5891 of the IRC, to the Periodic Payments specified in Paragraph 15. Claimant hereby releases and discharges the defendants and/or respondents with regard to the Periodic Payments, and agrees to only look to (name of Assignment Company owned by settlement planner firm holding company)
SIDE BAR (sponsored by "What's Your Vector Victor?")
Why is the Clamaint releasing and discharging "Defendants and/or Respondents" in the settlement planner's Qualified Assignment and Release document from a QSF? Wouldn't the "Defendants and/or Respondents" have been released and discharged when the money was deposited in the QSF under the "resolve or satisfy" clause in § 1.461-2(c)(2)?
Claimant is to Respondent as Defendant is to Plaintiff. See my September 18, 2014 post, What's the Difference between Plaintiff or Claimant, Defendant or Respondent?
13. In the event of notice of an application to any court for the transfer of the payment rights under this agreement, (name of Assignment Company owned by settlement planner firm holding company) reserves the right to effectuate an immediate transfer of ownership of the "Qualified Funding Asset"
Metropoltan Life Will Not Issue a Structured Settlement Annuity to a Settlement Planning Firm's Assignment Company
This author has confirmed with Metropolitan Life Insurance Company, that Metropolitan Life Insurance Company WILL NOT issue a structured settlement annuity to a qualified assignment company other than its own. Furthermore, since MetLife spun off its retail division to form Brighthouse, a transition which was finalized August 7, 2017, MetLife does not issue retail annuities.
Factored Structured Settlement Payments Bought as an Investment Are Not An Annuity
The acquistion of someone elses' structured settlement payment rights is not the purchase of a structured settlement annuity, in accordance with National Association of Insurance commissioner (NAIC) Statutory Issue Paper No. 160, or an annuity under the laws of most states. In 37 states, investors in other people's structured settlement payment rights do not have the same statutory protections.
What is a Qualified Funding Asset?
According to IRC 130(d)
"For purposes of this section, the term "qualified funding asset" means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if—