In a September 18, 2008 Press Release Woodbridge Investments opportunistically and prematurely danced on the graves of “major insurance giants like AIG”
“Recent financial troubles and bankruptcy scare for insurance giant AIG has created opportunity for structured settlement factoring company Woodbridge Investments. Woodbridge Investments LLC is a leading structured settlement factoring company who has seen explosive growth in the purchasing of settlements backed by major insurance giants like AIG…
“…Our customers are dealing with an inherent fear, and anxiety that naturally comes when you are expecting to receive payments for the next twenty or thirty years from companies like AIG that are linked with unprecedented real and rumored cases of bankruptcy.
“Real and Rumored” was essentially an admission of manipulation, by Woodbridge. It made just 2 days after the Federal Reserve Board announced the $85B credit facility for AIG on September 16, 2008
Fact: . Not a single “major insurance company , like AIG” that is writing structured settlements “went bankrupt” or was taken over by a state insurance department during the 2008-2009 financial crisis.
Fact: Insurance companies are exempt from bankruptcy laws and cannot go bankrupt. See 11 U.S.C. §109(b)(2),(3) which states, in pertainant part, “a person may be a debtor under Chapter 7 of this title only if such person is not (2) a domestic insurance company (3) a foreign insurance company engaged in such business in the United States”. Note also discussion in Protecting the Catastrophically injured Plaintiff’s Recovery by Michael W. Kessler, Esq.§1.45 p 36 and footnote 71.
Beware certain “hyenas” within the factoring industry , predators who use their powerful jaws to rip hunks out of your financial security.
On the other hand…9 Months Later…ALL writing structured settlement annuity companies were still around
The Woodbridge Duplicity out in the Open
Woodbridge Investor Package soliciting 7-9% returns includes Articles on the Safety of Structured Settlements which includes the following:
“Even in a worsening economic climate, life insurance companies are likely to retain investment grade ratings according to a new report from Moody’s, as reported in The Wall Street Journal. This is important news for anyone settling a physical injury or wrongful death claim because many of these companies issue structured settlement annuities.
According to Dow Jones, the Moody’s report concludes that life insurance carriers it has surveyed “are considered to be fit enough to weather the financial and economic crisis because of their solid balance sheets.” Moody’s reports that its reviews of these companies suggest that insurers are most likely to retain investment grade ratings.”
from June 4, 2009 Moodys report that Life Insurers Are Likely to Maintain “Solid Balance Sheets” cited as from NSSTA.com and even quotes former NSSTA President Dan Durbin of Allstate Life insurance Company.
Flip Flopped more times than a Some Politicians
Woodbridge scares the crap out of annuitants about the safety of insurance companies to induce them to sell for pennies on the dollar while also bragging to inevstors about the financial security of the same companies to get investors to buy the cash flows
And it happens because there was no regulation of sales practices, no licensing, registered transferees were years away. In Maryland for example, structured settlement transferees have only been required to register in Maryland since October 1, 2016, under Senate Bill 734, which established the current registration and bonding framework for structured settlement transfers in the state.
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