Structured Settlement Broker
A Structured Settlement Broker is an individual or firm involved in the creation of a structured settlement, responsible for placing structured settlement annuities, which are typically funded through insurance products such as one or more annuities. This structured settlement broker must hold a valid insurance license in one or more states and maintain appointments with insurance companies that issue structured settlement annuities.
What is Not a Structured Settlement Broker
- A structured settlement factoring company is not a structured settlement broker
- A buyer of payment receivables is not a structured settlement broker
- A broker of payment receivables is not a structured settlement broker.
- A firm that does not possess an active insurance license or appoinment(s) with insurance companies that issue structured settlement annuities is not a structured settlement broker.
Structured Settlement Company
A Structured Settlement Company is a firm which acts as a structured settlement broker
What is not a Structured Settlement Company
A company that buys receivables, including structured settlement receivables is not a structured settlement company
Structured Settlement Funding–the act of paying consideration to an assignment company to take on a structured settlement obligation, under a IRC Section 130(c) qualified assignment, which then purchases a “qualified funding asset” to fund the structured settlement payments.
Structured Settlement Funding does not mean the act of a company that buys your rights to receive payments from your structured settlement.
Qualified Funding Asset (for a “Qualified Assignment”)-means “any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or
any obligation of the United States”
Structured Settlement Quote– A proposal for a structured settlement annuity or US government obligation based structured settlement to a resolve a physical injury or workers compensation claim or lawsuit. Because a structured settlement is a regulated product it can only be offered from a licensed structured settlement broker in the case of a structured settlement annuity. Insurance licenses are issued by the Insurance department in each state and territory of the United States. The web sites of many state insurance departments have ways that you can verify a license on line so you can tell if a person holding themselves out to be a structured settlement broker is in fact a structured settlement broker.
If you already have a structured settlement you cannot get another structured settlement quote unless you have another law suit or claim involving physical injury or physical sickness. A quote to buy the payment rights from your structured settlement quote is not a structured settlement quote. There are so called factoring companies out there advertising that they offer structured settlement quotes and such statements are highly inaccurate.
Settlement Structured-If you want your settlement structured then you must consult a licensed structured settlement broker. See above.
Be extremely careful if you run into this term on the Internet! Some individuals and companies use these words to trick consumers into thinking that they can have your settlement structured through them. Some of these individuals are computer geeks, college professors, factoring company representatives, “Internet entrepreneurs”, and otherwise unqualified to advise you on having your settlement structured. A good place to start is to see if the individual is licensed as an insurance agent or broker in your state. If not stay far away! It is also a good idea to check to see if the individual is a member of the National Structured Settlement Trade Association (“NSSTA“). Producer Members of NSSTA will be able to help you have your settlement structured.
Structured Settlement Expert– a person or firm with expertise concerning all issues concerning the placement of structured settlements and related areas.
A number of individuals are cited as experts by syndicators such as EZArticles,com. The owner(s) of EZArticles.com apparently do not check the qualifications of their “experts” as we have covered in this blog. They have allowed numerous articles containing factual errors to be published irresponsibly (among them “structured settlements are like ants“). Therefore my opinion is tha until it sets some meaningful standards for qualifying its authors, you should not consider EZArticles.com a credible resource on the subject of structured settlements. Ignore them if they come up in your Internet search for structured settlements.
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