by Structured Settlement Watchdog®
Adler’s Insurance Agency hilariously twisted in knots trying to untangle the Baltimore Sun’s absurd claim that” “structured settlements are like an annuity”
Adler’s is all tangled up about what happens with a qualified assignment in a March 1, 2016 blog
Adlers Insurance is the Rockland County NY Insurance Agency that publicly ridiculed a black amputee burn victim, with a tasteless and offensive caricature af a man with a charred head in a doctor’s office, posted the following statement on March 1, 2016 (errors highlighted)
“Figure 2 show a snapshot of Baltimore Sun’s website writes in a report published on Feb 25 that “structured settlements are like an annuity…”
More accurately, a structured settlement contract is funded by an annuity. The defendant’s insurance is assigning the reliability to a company who’s buying an annuity from a life insurance company to issue periodic future payments to the recovery claimant. See Figure 4.”
Nit-picky comments
- Figure 2 shows
- Websites do not write
How the heck did Adler get this wrong?
- Defendant’s insurance (policy) does not assign, the Defendant or Defendant’s insurer does
- Adler’s poor attempt to describe a qualified assignment comically refers to “assigning the reliability (of what?) to a company who (or is it which) is buying an annuity…“. So read literally, if one has to piss every day like clock work every morning as soon as one’s feet hit the floor from the bed at 6am, that’s pretty reliable and you can assign that “reliability” of that yellow stream to a company which is buying an annuity”? Stream v stream of payments?
- The following chart shows the correct sequence of a structured settlement transaction. First there is a liability established to make future periodic payments. Then the liability is transferred, subject to the conditions of IRC 130(c), to a qualified assignment company along with funds, which the qualified assignment company uses to purchase an annuity (or, in some cases, united states treasury obligations) as a”qualified funding asset”.
It’s a shame that the Spring Valley based Adler’s Insurance Agency, like many in the structured settlement secondary market, does not appear to care enough to get it right. What a pity!
