Just because you are a Chartered Financial Analyst doesn't mean you have "street cred" when it comes to structured settlements as Tom Cochrane CFA 's April 12, 2011 article "Structured Settlements and Annuities" shows.Tom Cochrane is the founder and publisher of Annuity Digest.
The Chartered Financial Analyst(CFA) designation is an international professional certification offered by the CFA Institute to financial analysts who complete a series of three examinations. To become a CFA Charterholder candidates must pass each of three six-hour exams, possess a bachelor's degree from an accredited institution (or have equivalent education or work experience) and have 48 months of qualified, professional work experience. CFA charterholders are also obligated to adhere to a strict Code of Ethics and Standards governing their professional conduct
Well Snooty Dooby Do, who are you…? The Certified Structured Settlement Consultant designation, awarded by the National Structured Settlements Trade Association (NSSTA) merely requires "4 days in the vicinity of Touchdown Jesus". Judging solely by the Annuity Digest "disaster" shown below, the structured settlement watchdog submits to you the CSSC is a FAR BETTER measure than the CFA when determining someones street credibility on the subject of structured settlements.
Here's what the Chartered Financial Analyst says about structured settlements
"a basic structured settlement scenario might look something like the following:
- Injured person A is awarded $1 million in damages as a result of a personal injury.
- The insurance company that provides liability coverage to the party responsible for the injury of person A is the defendant in the tort suit.
- Instead of paying a lump sum (and in exchange for person A agreeing to dismiss the suit and accept the settlement), the insurance company opts to award damages through a series of periodic payments to person A—the “structured settlement.”
- Assuming that the structured settlement meets certain IRS guidelines, the payments to person A may be excluded from gross incomefor income tax purposes.
- The insurance company may choose to fund the structured settlement through the purchase an annuity from a life insurance company".
Comments
- An award IS NOT a settlement.
- Unless you are in a direct action state such as Louisiana, the insurance company IS NOT the Defendant.
- An insurance company DOES NOTaward damages. If an insurance company is subject to an award it pays money to resolve a law suit it's likely that it has been ordered by a Court or arbitrator to do so. Alternatively it may make an offer of settlement, or it may respond to a settlement demand made by the party suing or claiming against its insured. If it agrees to settle The payment of money, in such cases, is the result of a compromise or meeting of the minds. It is not an award.
- The exclusion from income (for damages on the account of physical injury or physical sickness (or workers' compensation)is set forth in the Internal Revenue Code.
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