by Structured Settlement Watchdog®
Annuity Straight Talk does more "mixing and mingling" than Happy Hour in trying to explain the parties to a structured settlement annuity transaction.
The "Assignee" Sashay
I really hope that my industry brethren who use the folks behind Annuity Straight Talk as a source for "Secondary Market Annuities" (which are receivables not annuities) pay attention to the company that uses a scam label because by its own admission "it easier to say".
"In a typical structured settlement annuity transaction, there will be an annuity issuer or obligor, an annuity owner, and a payee. The payee is the person to whom the payments are being made. This is the person who is injured in the suit or settlement, who is receiving the money.
In a lawsuit, typically the losing party will settle the claim against them by either purchasing an annuity to fund the future claims, or by assigning their obligations to pay the future payments through what is known as a qualified assignment. In a qualified assignment, the assignment company will then purchase an annuity to fund the future claims.
In both an assigned case and an unassigned case, you have the same parties, namely, the payee, the annuity issuer, and the annuity owner.
As a buyer of structured settlement payment rights, you become the new assignee of the original payments. Your payment rights are guaranteed by the annuity issuer, and in the secondary manner guaranteed by the annuity owner, who may either be an assignment company or the original losing party in the lawsuit".
Annuity Straight Talk bills the above among its FAQ "to Stay Ahead of the Crowd", BUT
- The payee is not "injured in the suit", unless he/she was wearing a suit and slipped on a banana peel due to someone's negligence or, technically speaking, an infant with a child birthing injury could have been injured in his/her "birthday suit".
- The payee is not "injured in the settlement" unless they got a nasty paper cut while leafing through the settlement agreement for claim #1, but that would give rise to a brand new claim.
- Sequentially speaking, first comes the injury, then comes a claim or suit, then comes the settlement.
- For over 24 years, the majority of structured settlements are established using qualified assignments.
- IRC 5891(C)(3)(a) states that the term “structured settlement factoring transaction” means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration. Arguably the term "transferee" is the fairer term to use, given that it is a structured settlement transfer. Patrick J. Hindert the author of a seminal text on structured settlements and the 2012 of the Alexander Hamilton Award from the National Association of Settlement Purchasers has consistently used the term "structured settlement transfer"
- The structured settlement factoring intermediaries and their SEO people are the only ones who benefit from the factoring industry "mixology".
Frequently Seen "A Rated Carriers"
Annuity Straight Talk misrepresents A.M. Best A++ rated Berkshire Hathaway (Life Insurance Company of Nebraska) and New York Life as " A' rated carriers
Annuity Straight Talk misrepresents A.M. Best A+ rated (Prudential Insurance Company of America), Metropolitan (Life Insurance Company), John Hancock and Allianz Life as " A' rated carriers
Really FAQ'd Up
Annuity Straight Talk refers to Secondary Market Annuities as "a note receivable bought at a discount". So why does Annuity Straight Talk use the scam label Secondary Market Annuity instead of note receivables? That's as easy to say as nose bleed.
"Insurance companies are not issuing contracts that yields 6% in this marketplace. Rather, sellers are willing to sell their existing annuities at a discount that allows you to achieve …yield"
Sellers are not selling their existing annuities, they are selling the right to receive atructured settlement payments. Buyers are buying a structured settlement receivable.