by Structured Settlement Watchdog
Higher Percentage Commission Sharing Conditioned on Placement of Related Life Insurer’s annuity
The structured settlement watchdog has become aware of a structured settlement broker representing an insurer, who recently tried to shakedown another structured settlement broker representing an injured plaintiff, wherein a higher percentage sharing of commissions was conditioned on the placement of the annuity with the casualty insurer’s related life insurance company. The structured settlement watchdog is not aware of any such conditions being placed by the casualty insurer in question.
Insurer’s Settlement Broker Copied Plaintiff Lawyer
As if that wasn’t dumb enough, in the aftermath of Spencer v Hartford, the insurer’s settlement broker sent it out from his/her agency’s email server and copied the plaintiff attorney (the insurer apparently WAS NOT copied). Naturally, the plaintiff attorney was angry and the insurer’s settlement broker’s unfortunate and self-serving actions jeopardized the settlement for his principals, the insurer.
Such a structured settlement broker must realize the impact that his/her selfish actions could have on (1) his or her relationship with the insurer, (2) the relationship between his or her agency and the insurer; (3) the perception of the insurer by drawing unwanted negative publicity when the plaintiff attorney tells his colleagues; (4) the perception of our profession by the insurer and the plaintiffs’ bar
The consultant’s agency principals have been informed. The next step is to advise the insurer. Those that can’t seem to operate in within the realm of civility in the structured settlement profession may eventually find their names in lights in this forum.
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