Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.
The STRUCTURED SETTLEMENTS 4REAL® Blog is a highly regarded source for structured settlement news, information, and commentary, led by structured settlement and settlement planning subect mater expert John Darer CLU ChFC MSSC CeFT RSP CLTC. With two decades of operation, the blog and 4structures.com are recognized as comprehensive resources, offering detailed guides and specialized insights. Established in 2005, the blog caters to a broad audience, including legal professionals, injured individuals, families, and various stakeholders, providing reviews and opinions on settlement planning. John Darer, President of 4structures.com LLC, is a seasoned structured settlement expert with over 40 years of financial services experience and 31 years specializing in structured settlements. Based in Stamford, CT, he is a Certified Financial Transitionist and Registered Settlement Planner, holding insurance licenses in 45 states and the District of Columbia. John Darer is dedicated to transparency and advocacy, he emphasizes the importance of engaging trained and licensed professionals for settlement planning, offering valuable insights through his investigative journalism and professional commentary.
Annuity.org is feeding its Yin by promoting annuities under the tagline “When Big Risk Big Rewards No Longer Make Sense.”
But here’s the Yang: at the same time, it’s encouraging structured settlement annuitants to sell their payments for pennies on the dollar and touting a 10‑year MYGA at 6% from a B++ rated insurer.
That’s a philosophical split wide enough to drive a fleet of factoring vans through. This contradiction becomes even clearer when you consider the B++ MYGA risk being marketed as a “low‑risk” solution.
What is a MYGA?
A multi‑year guaranteed annuity (MYGA) offers a contractually guaranteed interest rate for a fixed period. Straightforward enough.
But the guarantee is only as strong as the company making it, which brings us to the rating.
Why a B++ Rating Should Make Anyone Sit Up Straight
According to A.M. Best, a B++ rating means the company is “stable but has room for improvement” and its long‑term outlook “may be unsure.”
That’s the kind of phrasing that might lull the guy sleeping in the waiting room — but it shouldn’t lull anyone considering locking up money for ten years.
And if “may be unsure” sounds like something Mary Wells would never have sung about in My Guy, that’s because she wouldn’t. Her whole point was unwavering loyalty. A B++ carrier doesn’t exactly inspire the same chorus.
Is “May Be Unsure” a Risk? Ask the E&O Carriers
Here’s where the contradiction sharpens. The B++ MYGA risk isn’t theoretical — it directly intersects with how E&O carriers view insurer selection.
Professional E&O carriers routinely impose exclusions tied to insurer ratings. Why? Because choosing which insurers to place business with is squarely within the agent’s control. If an agent places business with a low‑rated or unrated carrier, the E&O carrier views that as a risk the agent voluntarily assumed.
And the exclusions can be severe:
Some policies exclude claims involving insurers rated below B.
Others set the bar at A‑.
Some exclusions apply even if the insurer is solvent.
Others apply if the insurer later becomes insolvent, regardless of whether the claim relates to the insolvency.
Many policies only carve out exceptions for insurers protected by a state guaranty fund.
Translation: If you place business with a B++ carrier and something goes sideways, your E&O policy may treat that as your problem — not theirs.
Why a B++ MYGA Risk Undercuts the “Low‑Risk” Message
In simple terms, Annuity.org’s marketing message doesn’t match the risk profile of the product it’s promoting.
Conclusion-The Message Collapses under Its Own Weight
You can’t warn consumers that “big risk no longer makes sense” while steering them toward a decade‑long commitment with a B++ carrier — the kind of rating that should wake even the guy sleeping in the waiting room. And Mary Wells may have sung about unwavering devotion, but no one is writing love songs about “may be unsure.”
If you’re going to preach risk avoidance, start by avoiding it yourself.
