As part of this author’s desire to establish best practices guidelines for structured settlement brokers and settlement planners this author and others have followed up the recent opinions of the New York State Insurance Department with similar requests to the insurance departments in other states. Eventually it is hoped that opinions will be obtained from ALL 50 states.
With respect to "no cost " qualified settlement funds I received correspondence this morning from Counsel for the Connecticut Insurance Department which, in response to a request concerning the possibility that they were faced with the same set of facts presented to New York, stated:
"For the same reasons provided by the NY Insurance Department, a life insurance producer is not allowed to pay expenses associated with a qualified settlement fund involving the sale of annuities, or give anything that would constitute valuable consideration to an insured or prospective insured. Please review section 38a-825 of the CT General Statutes." (underlined for emphasis)
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