by Structured Settlement Watchdog
Allstate Life announced that it was discontinuing medical underwriting for both qualified and non-qualified business. Allstate's decision to no longer issue rated ages was said to be due to high underwriting volumes and low placement rates.
A rated age is an important cost factor in a structured settlement which includes a lifetime annuity as one of its components. Allstate's decision affects plaintiff's of all types, attorneys who wish to structure attorney fees, structured sales with a life annuity component and other non qualified structured settlements.
The use of rated ages in MSA submissions to CMS has handicapped the underwriting departments at many structured settlement annuity issuers where they must pay medical staff for what ends up as low ROI business.
Several years ago Allstate Life Insurance Company was the first structured setlement annuity isssuer to state that it would not take any rated age requests for workers compensation cases.
In a release to appointed brokers Allstate Life stated that contracts will be issued for cases with rated ages only if:
The request for a new rated age or the request for a renewal of an expiring rated age or the request for a second look had to have been received by Underwriting no later than Tuesday, March 31, 2009
Despite this development Allstate Life stated that it remained committed to the structured settlement industry and it continued to write new structured settlement business until Q1 2013.
In March 2021, Allstate divested Allstate Life Insurance Company of New York, its New York undewrriting company, to Wilton Re and its non-NY operation became Everlake Life Insurance Company.
Leave a Reply