by Structured Settlement Watchdog
“Insurers also participate in the structured settlements and structured notes markets, but these markets have nothing to do with the structured annuity market”, writes befuddled Cyril Tuohy for an insurance industry publication on registered indexed annuities. For that statement Tuohy gets smacked with a figurative ” two-y by four-y”
What a pity that Cyril Touhy didn’t do his homework before publishing an article that misinforms. Is there any editorial review at Insurance News Network?
Insurance News Net missed THREE notable things about Structured Settlements, according to credentialed expert:
1. The term structured settlement is defined under Section 5891(c)(1) the United States Internal Revenue Code of 1986, as amended. Specifically the term “structured settlement” means an arrangement—
(A) which is established by—
(i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or
(ii) agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1), and
(B) under which the periodic payments are—
(i) of the character described in subparagraphs (A) and (B) of section 130(c)(2), and (ii) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
2. Qualified funding assets for structured settlements under IRC 130(d) include annuities, which for over 40 years have been known as structured annuities or structured settlement annuities. There’s even a company in Fort Worth Texas called Structured Annuities Inc run by Don and Dirk Weeks.that has been in business for 38 years. Where have you been fella?
3. Pacific Life Insurance Company and Pacific LIfe and Annuity earned a favorable Private Letter Ruling 2014435006, in 2014, and have been offering an Indexed Linked Annuity Payment Adjustment Rider (ILAPA) . Read more here