by Structured Settlement Watchdog®
Bulbrook Drislane, a structured settlement receivables intermediary, to individual investors, and an annuity general agent, recently rebranded as Income Stream Funding Partners, LLC
In lieu of Secondary Market Annuities and In-Force Annuities, IFSP refers to Previously Owned In-Force Payments and Secondary Market Payments. The company recent began a massive online marketing campaign. Well done. John Bulbrook and his partners get it.
I’m not the only one who sees things this way
Ken Nuss, Founder of Annuity Advantage, Gets It
Ken Nuss, The Founder of Annuity Advantage came to the following conclusion about the Secondary Market Annuity scam label:
” It is a completely unregulated industry. No licensing whatsoever is required in order to sell SMAs. That is the opinion of several of the largest marketers of the product. It is possible to have completely unregulated and inadequately trained individuals making claims and promises that may or may not be accurate. There is currently no regulatory body making sure things are handled in an appropriate way…Unlike primary market (directly issued) fixed annuity products, your state guaranty association provides NO coverage for secondary market annuities (SMAs)”.
___________________________________________
SIDE BAR
The 2017 modifications to the Life & Health Guaranty Associations Model Act recognizes that acquired structured settlement payment rights (i.e. structured settlement receivables) are not annuities by expressly excluding coverage. While it will take time for all states to adopt the 2017 modification to the model act, a crucial provision that affects investors in structured settlement receivables is that the changes (i.e. no coverage) will apply whether or not the payment rights were acquired before or afther the changes are adopted in the state.
___________________________________________
Investopedia has a bogus definition of Secondary Market Annuity
Investopedia has a bogus definition of Secondary Market Annuity at the time of posting..
“A secondary market annuity (SMA) is a transaction in which the present owner of an income annuity trades his or her future income payments in favor of a lump sum payment”. Three things are notable in Investopedia’s bogus definition:
- Structured settlement receivables are not a transaction. A transaction is not a product.
- The Investopedia link in the definition to the term “annuity” (see below) slits the throat of the Secondary Market Annuity scam label.
- The owner of a structured settlement annuity is generally a qualified assignment company. It is still the owner of the annuity contract and it is not the one transferring its future income payments in a structured settlement factoring transaction.
What is an Annuity? ( according to Investopedia)
An annuity is a contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. The period of time when an annuity is being funded and before payouts begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase.
Even More Nonsense
Recently I read on its website that Somerset considers Life Settlements and Viatical Settlements as a type of Secondary Market Annuity. Absolute rubbish. Somerset suspended sales of structured settlement derivatives following the filing of a lawsuit by the Maryland Attorney General and in its announcement then stated in bold print ” factored structured settlements are not annuities”. It does however continue to maintain the site “secondarymarketannuities(dot)com”
The Altium Group, which was using Secondary Market Annuity at the time of posting, and was an intermediary in the Wall case, said the following on its website
“Despite best efforts to comply with the SSPA, Secondary Market Annuity transfers possess a risk of criminal fraud and violations that can be committed by any party involved in the transaction. As such, a Secondary Market Annuity may result in a reversal or vacation of its underlying court order if it is determined that the original sale was approved under false pretense.
A Vacated or Reversed Order would result in the termination of future annuity payments to the investor
You don’t see those types of warnings on real annuities because they are sold by licensed and regulated agents and brokers, and issued by licensed and regulated insurance companies.