Structured Settlements 4Real®Blog 2026

Domestic Non-Qualified Assignment with Funding Agreement

NQA-Flex Agreement is not constrained by IRC 72(u)

MetlIfe has introduced the Non-Qualified Assignment Flex Agreement (NQA-FA) The NQA FA solution provides anthe same reliability and strength you expect from MetLife, while offering enhanced payment flexibility beyond our traditional Non-Qualified Assignment solution. 

Key Highlights of NQA-Flex Funding Agreement

• Funding agreement product supports deferred payment start dates, lump sum benefits, annual increases, and other flexible payment features.
• New alternative and complementary settlement tool defendants/insurers can use to resolve non-physical injury claims and lawsuits through periodic payments while transferring those payment obligations to MetLife’s Assignment Company.
• Issued by MetLife Assignment Company, Inc. and Metropolitan Tower Life Insurance Company, both domestic US-based entities.
• Not Subject to IRC 72(u)
• Deferred Lump-sum payments are possible‒
• Annual increases and customized payment designs•
• Payments must be guaranteed and not life-contingent•
• May allow non-natural persons (e.g., businesses or corporations) as payees (requires MetLife home office approval)
• Maximum Deferral 15 years (compared to one year for the annuity funded non qualified assignment),
• Maximum certain period is 40 years

How Does Standard Non-Qualified Assignment Work?

• MetLife traditional Non-Qualified Assignment (NQA) product is an annuity-based solution designed to accept the transfer of a defendant’s/insurer’s periodic payment obligation for certain non-physical injury cases.
• Key Payment Characteristics of Traditional NQA
  • Subject to IRC 72(u)•
  • Requires immediate payments, to begin within one year from purchase
  • Must be made in substantially equal amounts
  • Life-contingent payments are permitted

Potential Uses for Both NQA and NQA-Flex

The NQA and the NQA-FA may be used to resolved non-physical injury matters including, but not
limited to:

• Employment Litigation
  ‒ Wrongful Termination
  ‒ Sexual Harassment
  ‒ Discrimination
  ‒ Mental Anguish
• Construction Defect Claims and Suits
• Contract Disputes
• Punitive Damages
• Environmental Claims
• D&O and E&O claims
• Intellectual Property
• Attorney Fees associated with these types of cases
• Wrongful Birth/Wrongful Life

Related Reading

What are Non Qualified Structured Settlements and Non Qualified Assignments for Tax Deferral March 16, 2025

Do Structured Settlement Payments Have to Be Equal Payments? – Structured Settlements 4Real®Blog July 8, 2024

Tax Issues in Settlements of Claims with Allegations of Sexual Misconduct and Sexual Harassment August 8, 2023

Non Qualified Assignment vs Qualified Assignment | The Difference April 2, 2018

Do Structured Settlement Payments Need to Be Equal Payments? – Structured Settlements 4Real®Blog May 10, 2023

Are Damages in Wrongful Life and Wrongful Birth Cases Taxable? – Wood LLP 06/27/19