by Structured Settlement Watchdog
While many types of financial companies can sell annuities, only an insurance company can issue an annuity because annuities are insurance products.
So says Annuity.org in parallel with the opinion of the National Association of Insurance Commissioners. NAIC’s Statutory Issue Paper No 160 implies that factored structured settlement payment streams are neither annuities nor insurance products. Institutional investors cannot carry them on their books as annuities or insurance products.
Annuity.org Sticks a Fork into Tertiary Market Militants
Alanna Ritchie, a writer for Annuity.org, has faced her fair share of criticism from me over the years, but she certainly nails an essential truth while taking a stand against the payment rights buying community and the remaining die-hard market militants who misleadingly defend the term “secondary market annuity” or misrepresent factored structured settlement payment streams as annuities.
When a structured settlement factoring transaction is initiated, those who operate such companies fully understand that the annuity funding the structured settlement payments is NOT transferred to them or their investors; only the structured settlement payment rights are transferred. If the annuity were transferred, there would be no need for a questionable Merriam-Webster “defense.”