by Structured Settlement Watchdog
It was inaccurate for SPI to imply that the assignee and the life insurance company are one and the same on the website of Settlement Professionals, Inc. West Linn, Oregon , as of October 16, 2010.
Following is a flow chart which explains how a structured settlement works
FACT: Generally, qualified assignment companies are special purpose companies not life insurance companies.As you can see from the above chart, after the obligation to make payments is assigned to the qualified assignment company in step 2, the qualified assignment company purchases a structured annuity from a life insurance company as a "qualified funding asset". Of the current structured settlement annuity writers only the assignee where a New York Life Insurance Company annuity is used as a "qualified funding asset" is a life insurance company. Moreiver, MassMutual has not offered structured settlements for several years. Even when they did the qualified assignment company was not a life insurance company.
I was embarrassed as a Registered Settlement Planner ("RSP") that a member of the RSP board, that passes judgment on those seeking the RSP professional designation (a professional designation that I respect and worked hard to achieve) has failed to accurately articulate a foundational structured settlement concept (i.e. "Structured Settlements 101").
Settlement Planners Who Make a Meal of Settlement Orientation
Even if they frame themselves as "plaintiff loyal", "plaintiff exclusive", "plaintiff-centric", a centrist or defense oriented, they've only got a dollop of egg salad past its sell by date if their information isn't good.
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