by Structured Settlement Watchdog
It goes without saying that paying bribes, kick backs and rebates in the process of soliciting insurance is illegal!
Ostensibly, such rebate restrictions aim to safeguard consumers from engaging in transactions with businesses whose primary appeal lies solely the rebate itself, while also helping to prevent larger, more dominant entities from overpower smaller, more ethical competitors.
Structured settlement professionals are overseen by state insurance departments in each of the states where they conduct business. To engage the solicitation of structured settlements, an individual must hold a life insurance license in each state where solicitation occurs and comply with the corresponding laws governing such activities.
A significantgap exists between the regulation of sales practices the primary and secondary structured settlement markets.
Companies that structured settlement payment rights often operate without regulation, enabling them considerable latitude to employ misleading tactics at persuading individuals give up their long-term financial stability.
The following appeared on the website of "financial crack" dealer Woodbridge Investments at time of original publication:
"Financial consideration that is tied to the sale of insurance, including structured settlement annuities is illegal, however the fact that politicians and regulators are either not aware or not doing anything about this factoring company loophole is a national tragedy. Or is it?
By the reasoning applied through political and regulatory inaction in on this issue, why should insurance producers not be permitted to offer rebates, bribes, or kickbacks, or in repeated false advertising an incentive for business?
- Why shouldn't an insurance agent be allowed, for example, to buy a TV for a client (like Woodbridge)?
- Why shouldn't a structured settlement consultant, for example, be able to pay the mortgage for a client (like Imperial structured Settlements- factoring company says) or
- Why shouldn't an insurance agent be allowed to make fraudulent advertising promises (like many factoring companies baiting with "cash now").
HOW ABOUT SIMPLY SUBMITTING TO TOTAL FRICKIN' ANARCHY IN THE INSURANCE BUSINESS?
Now of course I'm not serious about anarchy. I'm trying to illustrate a point and increase awareness of the regulatory dischotomy that exists. Think about it regulators and legislators.
Yeah right, rainbow Mohawk topped insurance agents and a mosh pit, that is is all we need! "A little Sid Vicious in my life, A little Johnny Rotten by my side" (apologies to Lou Bega for the "bastardization" of his mambo)
The status quo however, is patently unfair in view of what Woodbridge Investments is doing, is it not?
How is it that such companies are referred to as "vultures" by a Rhode Island judge (Netti C. Vogel) and others yet the "vultures" marketing practices continue to be unregulated?
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