by Structured Settlement Watchdog
The words “Structured Settlement Quote” appear to be blatantly misused in Internet advertising by unlicensed individuals for personal or business gain. It is high time that state regulators did something about it
Structured Settlement is a defined term in the United States’ Internal Revenue Code
(1) Structured settlement
The term “structured settlement” means an arrangement –
(A) which is established by –
(i) suit or agreement for the periodic payment of damages
excludable from the gross income of the recipient under
section 104(a)(2), or
(ii) agreement for the periodic payment of compensation
under any workers’ compensation law excludable from the gross
income of the recipient under section 104(a)(1), and
(B) under which the periodic payments are –
(i) of the character described in subparagraphs (A) and (B)
of section 130(c)(2), and (ii) payable by a person who is a party to the suit or
agreement or to the workers’ compensation claim or by a
person who has assumed the liability for such periodic
payments under a qualified assignment in accordance with
section 130.
The only definition of structured settlement that formally exists in the Internal Revenue Code of 1986, as amended
- In order to quote a structured settlement, you must be licensed to sell an insurance product, an annuity, by at the very least your home state and then the state that the annuity will be owned in.
- Some structured settlement brokers are also licensed in the states they solicit in as well.
- Quoting a purchase of periodic payment rights is not a structured settlement quote.
- If you are discussing an insurance product, or advertising, holding yourself out or implying that you are quoting a product that is an insurance product, and you don’t hold a valid insurance licenseyou may be violating the law. Beware!
- A number of factoring companies that pay “cash now” in exchange for invoice receivables, periodic payment rights and other receivables hold themselves out as providing structured settlement quotes.This is outrageous!
If you go to either the Google or Yahoo search engine and type in “Structured Settlement Quote“
you get among other things:
Structured Settlement Quote. Free Structured Settlement Quote-www.note city.com
you also get:
Now here’s one of the most egregious:
Structured Settlement Quote Structured Settlement Quote Information. Structured Settlement Quote Done right at Northeastern Capital.com. Structured Settlement Quote…www.northeasterncapital.com
Quote from Northeastern Capital Funding’s website “From it’s conception in 1997, Northeastern Capital has only handled lump sum payoffs“. The inappropriate use of the word “payoff” aside , by its own admission on its website, Northeastern Capital only does “lump sum payoffs”. It does not quote structured settlements. It does not create or sell structured settlements. It is obvious that its use of structured settlement quotes 4 times in its programmed meta description is solely to try to achieve the maximum Google search engine result. And to a consumer trying to find out about structured settlements it only adds to the clutter.
Is this a violation of New York State Insurance Law, where Northeastern Capital Funding, LLC maintains an office in the Empire State Building, or Delaware where Northeastern Capital Funding, LLC is domiciled? An opinion letter will be sought to find out.
Northeastern Capital Funding was associated with notorious lifetime FINRA banned Dan Cevallos
- Advance Funding and Dan Cevallos | Was It a Ponzi Scheme? – Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews
- Melissa Diego case 2022.05.26-1-diego-v-advance-funding-summons-and-complaint-808043_2022e.pdf
The practice of using the words ” Structured Settlement Quote” is a bad business practice for companies that seek to purchase the periodic payment rights of others.
If you hold yourself out to be something that you are not, through your own ignorance, and/or with a profit motive, it will eventually come back to bite you.
I ask settlement and legal professionals to be increasingly vigilant, to seek opinion letters if appropriate and to report violations to state insurance departments and regulators.
Leave a Reply