by Structured Settlement Watchdog®
Several structured settlement and settlement planning industry websites proudly proclaim that certain individuals hold the lofty and mysterious title of ” licensed structured settlement broker”-as if they’re part of an elite coffee-fueled secret society
Some structured settlement brokers hold life insurance broker’s licenses or agent’s licenses for life insurance, which in most states also cover non-variable annuities, along with carrier appointments in the states where they solicit annuity or insurance business. However, there is no such thing as a “structured settlement license.”
A valid life insurance license is one of the requirements to receiving an appointment from the top life insurance companies who write structured settlement annuities
- Generally structured settlement brokers are required, by the annuity issuer, to be licensed in their home state as well as the state where the qualified assignment company is based.
- A number of structured settlement consultants go further and are licensed in the states where they solicit business.
- Several individuals and companies that purchase structured settlement payment rights may misleadingly present themselves as “structured settlement brokers.”
- The individuals or entities in the last category do not actually place annuities; instead, they pay a discounted amount of cash in exchange for the right to receive an assignment of some (or all) of your structured settlement payment rights. They are most likely not licensed for life insurance or annuities, and are highly unlikely to have been appointed by any structured annuity issuer or alternative periodic payment provider involved in placing structured settlements funded by United States Treasury Bonds.(“Treasury Funded Structured Settlements”)
- You may also encounter
If you see an advertisement, or someone verbally claims they are a ” licensed structured settlement broker, lower your jaundiced eye and verify if they possess a valid life insurance license in your state. Most states make this available online. Here’s where to start…
- National Insurance Producer Registry (NIPR) Lookup
- If a state is not listed in the NIPR (again many, but not all of them are), then visit the website for the relevant state’s Department of Insurance, or Department of Financial Services
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