by John Darer CLU ChFC MSSC CeFT RSP CLTC
What are Structured Settlement Daily Rates?
Structured settlement daily rates are the Chef’s Kiss of structured settlement annuity pricing. A little something extra in pricing consideration. Daily rates are not available every day with every annuity issuer.
Good structured settlement brokers make it look easy but circus juggling talents come in handy when rates are in flux. 
The implementation of structured settlement daily rate pricing is a powerful tool that may help bridge the gap in negotiations over contentious damage items. Furthermore, it can significantly enhance the value of a policy limits offer in situations where the defendant has restricted coverage and lacks substantial assets.
Structured Settlement Daily Rates: An Important Part of the Pricing Process for:
- Creating and finalizing new structured settlements
- Structured installment sales of real estate or businesses,and
- Non qualified structured settlements/ non qualified assignments and
- Annuity funded structured attorney fees,
Common Considerations
- Market trends
- Minimum premium for structured settlement daily rate pricing is common, varying by structured settlement annuity issuer.
- Structured settlement daily rates may be extended until noon of the next business day to up to 10 days depending on the carrier with most being good “until the end of the next business day”
- If case negotiations are ongoing some will consider an extension on a case by case basis, if market conditions permit. Some annuity issuers will give greater extensions on cases with structured settlement annuity premium (to that annuity issuer) in excess of a certain premum threshold.
What Affects Structured Settlement Annuity Rates?
Structured settlement annuity rates will vary by annuity issuer criteria which may include (1) nature of payment stream (2) spot rates on investments (3) annuity issuer investments (4)statutory guidelines for reserves,(5) surplus position (6) overall business appetite and philosophy and (7) rated age (for life contingent payment streams) (8)size of premium
Structured settlement brokers and settlement planners that have access, can shop the market of structured settlement annuity issuers for the most competitive rates. Structured settlement book rates must be set responsibly considering the large and varying flow of premium income and the fact that statutory guidelines of most states require the matching of assets to liabilities.
What are Book Rates?
Structured settlement annuity issuers circulate book rates (name “book rates” originated from “the old days” when a manual rate book or rate sheet and calculators were used) to structured settlement brokers on a regular basis. Book structured settlement rates change from time to time reflecting the general market conditions.
Artist Emil Rothengatter (a/k/a E. Ro or E.P. Roe). Images taken from “Art of The Circus”exhibit and used with permission of the Witte Museum, San Antonio, TX
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