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May 23, 2024

Independent Life Presented as Equal to "AIG" in Structured Settlement Receivables Market

by Structured Settlement Watchdog
 
Independent Life Insurance Company structured settlement receivables and "AIG" structured Structured settlement receivables conundrum settlement receivables are presented as virtual equals in an offering on a tertiary market website that markets structured settlement receivables to investors through financial advisors
 
"AIG" - 15.3 yrs - In Stock

$61,867.73 purchase price - 5.765% yield - $92,000.00 total payout

- 184 monthly payments of $500.00 starting on 06/26/2024, ending on 09/26/2039

 
Independent Life - 14.9 yrs - In Stock

$163,379.42 purchase price - 5.745% yield - $240,715.80 total payout

- 180 monthly payments of $1,337.31 starting on 06/01/2024, ending on 05/01/2039

Source: DCF Exchange, retrieved May 23, 2024

Key points for consideration

  • Note that per the above third party comparison as cited above, each of the structured settlement receivables are of virtually equal duration of at or about 15 years.

  • Structured settlement receivables are not annuities. See NAIC Statutory Issue Paper No.160 finalized April 6, 2019.

  • No premium is paid to an insurance company, no insurance application is taken. No policy is issued.

  • Investors enter into a Receivables Purchase Agreement.

  • Likely no coverage for investors in the event of insolvency. See Life & Health Guaranty Association Model Act (#520),where adopted.

  • The risk profile of a structured settlement receivable is not equivalent to that of a structured settlement annuity. 

  • Although not specified, the assumption is that the "AIG" structured settlement receivables originated out of a structured settlement funded with annuities issued by American General Life (founded 1926 or United States Life in the City of New York (founded 1850). Annuities do not transfer in a structured settlement factoring transaction.
  • The immediately aforementioned companies are Corebridge Financial subsidiaries. Corebridge is a company and brand created when AIG spun off AIG Life & Retirement in 2022. As of June 9, 2024 (the “Deconsolidation Date”),  AIG owned 48.4% of Corebridge  Source: AIG Financial Supplement Recast Corebridge as Discontinued Operations.
  • The Corebridge subs have rating agency opinions of A.M. Best A , Fitch A+, S&P A+, A2 Moodys and Weiss Ratings B (AmGen) and B- (USL), at time of publication.
  • Structured settlement receivables sold to investors emanate from the transfer of structured settlement payment rights, pursuant to IRC 5891 and applicable state structured settlement protection acts.
  • The structured  receivables that were the subject of this commentary (and some others in the industry) have historically been subject to servicing agreements with unrelated third parties from the first structured settlement factoring transaction. 
  • Independent Life (founded 2018) has rating agency opinions from two Tier 1 ratings from Kroll Bond Rating Agency A- (KBRA) and  A Egan-Jones and Weiss Ratings D+, Payee Protection Policy | Independent Life

Last updated June 27, 2024

 

 

 

 

 

 

Posted at 11:01 AM in Structured Settlement Factoring News, Structured Settlement Receivables, Structured Settlement Watchdog®, Tertiary Market Commentary |

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Guide to Structured Settlements 2024

  • What is a Structured Settlement? What You Need to Know
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  • Rated Ages and Structured Settlement Cost
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  • Top Structured Settlement Annuity Companies 2024
    Which life insurance companies issue structured settlement annuities in 2024? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information. Last updated June 14, 2024
  • Treasury Funded Structured Settlements
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  • Compare Structured Settlement IRR to Other Settlement Alternatives
    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements 2024
    Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
  • Structured Attorney Fees for Tax Deferral for Attorney Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as capped or uncapped index linked structured settlement annuities where payments are adjusted based on upside changes in the S&P 500 or another index, Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team in 2024.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life), oran annuity issuer has changed its name and you're trying to track them down. Here you go! The list is regularly updated. Last updated May 20, 2024.
  • Structured Settlement Quote Lock-Ins | What You Need To Know
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  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
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    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
  • iStructure |Uncapped Fixed Index Structured Settlement Annuity
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  • Structured Settlements and Longevity Risk| What Are the Odds?
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
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