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.
Structured Settlement Factoring Companies Strike Innovation Using a Familiar Playbook
Heard Something Fishy Was Going On
The Structured Settlement Watchdog recently got a frantic call from “Tuxedo Junction,” Antarctica, courtesy of Pippa, the Penguin of Penguins and three-time Olympic 5-Meter Iceberg Diving Champion. Her signature move was the “Triple Pengy”.. She had a brilliant tip about some of the fringe-of-the-fringe players in the structured settlement secondary market and what they’ve been up to—thinking it was all under wraps. Or so they thought.
Knowing What Your Customers Are in the Market For
Penguins are hitting the underwater buffet with seafood galore! Their menu features krill, fish, and squid, but it’s all about the species’ preferences. Emperor penguins dive in for fish and squid, while Adélie penguins are the ultimate krill enthusiasts, living for that “krill thrill.” Source: What Do Penguins Eat and How Do They Hunt? A Guide to Their Diet
Penguins Are a Huge Market Segment for Fish
Plenty of penguins, means there is a need for piles of fish, heaps of krill, and absolutely no tuxedo rental required!
Get Fish Now, Feed the Family and Avoid Predators
Penguins offer a solid value proposition: they can snag fish on impulse, handle family duties like pros, and skillfully dodge terrifying predators like the Leopard Seal—all while looking dapper in their tuxedos.
Only time will tell, but all the “ingredients” for success are in the mix. Meanwhile, I trust readers, including peeps in the structured settlement secondary market have savored this delightful dish of signature satire.
In late August, bloggers on the Typepad platform were informed that Typepad was shutting down and that content would no longer be available after September 30, 2025. With an enormous body of work 70 days from the 20th anniversary of my first blog post of November 12, 2005, I faced the Herculean task of exporting 20 years of content, around 5,500 blogs, with many links, images and unique signature memes in a very busy time of the year.
The transition of Structured Settlements 4Real® to WordPress was a rewarding challenge, and I’m proud to have successfully preserved what many consider a valuable resource for structured settlements and settlement planning consumers and our readership.
As with any move, everything is functional now, but it will take a little time to “plug in every last plug”, “hook up every last appliance” and “hang every picture on the wall”, figuratively speaking. So bear with me. Alot of stories evolve over time and we have links to tie together aspects of the story.
Should you encounter what appears to be a deadlink that says “Typepad”, rest assured the content is there, but a plug needs to be “plugged-in”. Working through it. If you encounter something feel free to shoot me a note or call.
I aim to continue developing a platform that provides consumers with a clear starting point to explore important topics of interest in depth, while ensuring they do not miss the key points.
I have built and will continue building a place that people can go and read contemporaneous observations of the structured settlement and settlement planning industry through my eyes and ears and recording what I have seen, heard, read and/or researched.
Thank you, readers. Stay tuned for the engaging look and feel of the Structured Settlements 4Real blog at its WordPress home, the innovative research features currently in development, and upcoming enhancements, including a shorter, more convenient, and easy-to-remember site address (structuredsettlements.blog).
Let’s discuss structured settlement quotes and focus on some common structured settlement funding issues that should be of importance to plaintiff attorneys, plaintiffs, insurance adjusters, defense attorneys and other interested parties or stakeholders in the structured settlement process.
The validity of a structured settlement quote depends on the type of quote
A book rate structured settlement quote might be valid for 5-7 days
A daily rate structured settlement quote could be good for 24 hours or less, or the close of the next business day..
If you’re making or accepting an offer based on a quote, always check for an expiration date.
Some brokers include a disclaimer stating, “Rates are subject to change unless the case is locked in with a commitment to accept.”. If the quote is based on a rated age, the rated age must be valid. Generally rated ages are good for 6-12 months (depending on the annuity issuer). If a case has been pending for sometime, the rated age request must be renewed or the quote may not be valid. A request for renewal or reconsideration of the rated age determination is a good business practice. Occasionally a rated age has been based on aged medical information. New information can be helpful in improving the rated age if there has been a change in the plaintiff’s medical condition.
Timing of structured settlement funding is important. What are the factors that could affect the timing of structured settlement funding?
The timing of structured settlement funding may vary by:
who is funding the structured settlement (“the payor”)\
the statutory requirements of the jurisdiction as to timing of payment (e.g in New York, a defendant usually has 21 days to pay from the time he/she/it has been delivered the release of liability;
the nature and business practice of the payor (some stretch it out to the last possible day, others pay very quickly, or will even pre-fund the structured settlement prior to receiving a release);
whether Court approval of the settlement, or approval of the plan of distribution of the settlement proceeds, is required before releases can be executed;
whether the payor is a government entity that has special funding consideration as to timing of payments;
anything that may be stipulated by and between the parties;
The purchase date plays a major role in determining the pricing of any structured settlement quote
This is the date that the annuity issuer expects the structured settlement funding. If the structured settlement funding arrives later than the purchase date it can affect the cost of the annuity. Why does it affect the cost of the annuity? As an example, consider an obligation to pay $150,000 in 10 years. If this has been priced based on a purchase date of August 1, 2008 with the payment date on August 1, 2018 it will have a particular price. If the structured settlement funding is not received on time and is instead received one month later on September 1, 2008 it is 9 years and 11 months until the payment date. Thus it makes sense that the cost could be higher. Of course if interest rates were to rise in the interim then the price could be the same or better.
There is always speculation that interest rates will increase in the near future*. Some say “how low can they go”? Playing interest rate trends with your or your client’s money is a dangerous game. If you are taking such calculated risks, you need to continuously evaluate whether those risks are working for or against you.
What are Structured Settlement Lock-ins?
Fortunately a legitimate licensed and appointed structured settlement consultant creates structured settlements (i.e not the factoring company representatives masquerading as structured settlement brokers) have lock-in privileges with the annuity issuers. In exchange for the agreement to fund on a certain purchase date in the future the annuity issuers will generally agree to lock-in the interest rate associated with that quote. This is particular useful when Court approval is a required for the settlement.
It’s important to note that agreeing to a lock-in is a commitment.
The annuity issuer actually goes out and secures investments to balance the liability created by the periodic payment obligation (as is required under the insurance laws of most states).
If interest rates rise in the interim and the plaintiff attorney, who previously agreed to the lock-in commitment, goes somewhere else to get a better rate the annuity issuer agreeing to the lock-in is left screwed
Occasionally an insurance company may be willing to extend the lock-in provided the annuity payment dates are moved a number of days commensurate to the days delay in funding.
The key takeaway is to be cautious when agreeing to a lock-in commitment. It’s a valuable tool when used appropriately, but if you or your structured settlement broker misuse this privilege, the annuity issuer might refuse to offer lock-ins in the future.
Robocallers Calling in “From Medicare” Tripped Up Spectacularly
Robocallers from India and Pakistan inundate American phone lines claiming to be calling from Medicare. When I’m in the mood to engage, I respond “So you’re calling from CMS, eh?” The invariable response is ” no I’m calling from Medicare”. Their script doesn’t contemplate that Medicare is part of the Center for Medicare and Medicaid Services and their charade is thwarted in less than a half a minute.
WithStructured Settlement Payment Transfers AreTwo Judges’ Heads are Better than One?
When it comes to structured settlement payment transfers, maybe two judges’ heads are better than one—after all, it’s harder to miss the fine print when you’ve got double the wig power.
Structured settlements are often preferred in cases involving minor plaintiffs, as they provide financial security over time.
Court approval is typically required when structured settlements are arranged for minors.
In some instances, multiple courts may need to be involved. For example, in a wrongful death case in New York where a minor is the payee, the settlement might be addressed by the Supreme Court, while distribution approval could fall under the jurisdiction of a Surrogate Court judge.
Protective measures to safeguard structured settlement payees became increasingly common following reports of abusive sales tactics by certain participants in the secondary market, which drew attention from both local and national media. These measures generally required that any transfer of structured settlement payment rights also receive approval from the original court, where judges were more likely to be familiar with the payee and the circumstances surrounding the original settlement.
Moving Right Along…
There might come a time when a minor relocates with their family multiple times for various reasons.
Parent change of job
Divorce of parents
Parent remarriage
Rehabilitation or injury to sibling requires specialized care in another states
Death of one or both parents
Child moves away for advance schooling
Child moves for an employment opportunity
Marriage
Natural Disaster
Fire
Underlying Court Approval is Required
For example, if you were a minor born in New York and living in Westchester County when your structured settlement was established, but later as an adult you move to Charleston, South Carolina, and choose to sell part of your structured settlement payments, you would need court approval in your current county of residence in South Carolina and also need to secure Underlying Court Approval (UCA) in Westchester County, New York. While this process might seem inconvenient, this “speed bump” is a safeguard against rushing through a transaction when potentially encountering unethical actors in the secondary market.
Aon plc, a global professional services firm specializing in risk, retirement and health solutions, has been conducting the Ward’s 50 analysis for over three decades
The list is a product of Aon’s Ward benchmarking service, which evaluates nearly 3,600 insurance companies nationally and selects those that meet stringent safety, consistency, and financial performance criteria. This service helps insurers improve profitability by comparing operational practices and metrics.
The 2025 Ward’s 50 Life & Health list was published in July 2025. Unsurprisingly, several life insurers that offer structured settlement annuities featureon this year’s list. This marks the 35th year of the Ward’s 50. AON’s analysis includes nearly 700 companies, according to the report,
Life insurers with structured settlement annuity units that made the 2025 Wards Life & Health Top Performers
Corebridge Financial (which includes structured settlement annuity issuers American General Life Insurance Company and United States Life Insurance Company in the City of New York)
Metropolitan Life Insurance Company
Mutual of Omaha (which includes structured settlement annuity issuer United of Omaha Life Insurance Company)
The Prudential Insurance Company of America
All of the life insurance companies named in the 2025 Wards 50 that issue structured settlemant annuities have been in the insurance business since the 19th Century!
With respect to Corebridge and Mutual of Omaha, this statement expressly refers to noted subsidiaries in brackets.
Describe the Testing Performed for AON Ward’s Benchmarking
Safety and Consistency Tests Each company must pass primary safety and consistency tests, including:
• Surplus and premiums of at least $50 million for each of the five years analyzed
• Adjusted net income in at least four of the last five years
• Compound annual growth in premiums between -10 percent and +40 percent
Performance Measurements Companies that pass the safety and consistency tests are measured and scored on the following: elements:
• Five-Year Average Return on Average Equity
• Five-Year Average Return on Average Assets
• Five-Year Average Return on Total Revenue
• Five-Year Growth in Revenue • Five-Year Growth in Surplus
It’s important to consider information from a variety of credible and trustworthy sources
Ward’s 50 benchmarking is among several key benchmarks in the insurance industry. Others include A.M. Best, Standard & Poor’s, Fitch, Moody’s, and additional Tier One rating services, along with Weiss Research. Peer reviews such as Fortune’s Most Admired Companies and the Ethisphere offer further valuable insights. Supplementary studies, including those by Newsweek/Statista, can also provide helpful perspectives.
Protective Life Corporation, a subsidiary of Dai-ichi Life Holding, actively manages structured settlement annuities through its operating subsidiaries.
Structured settlements provide recipients with periodic payments over time and are often used in legal settlements such as personal injury cases. Protective Life ensures the administration these settlements, offering customer and handling of policy details.
When Liberty Life Assurance Company of Boston was sold to Lincoln Financial Group in 2018, the structured settlement book of business was then reinsured by Protective Life, which handles structured settlement customer service for former Liberty Life Insurance Company of Boston annuitants. See Structured Settlements Customer Service | Protective Life
Recently, Protective Life entered a significant reinsurance agreement with Resolution Life, ceding $9.7 billion in reserves, including structured settlement annuities, to mitigate market risks and free up capital
The agreement will see Protective’s operating subsidiaries, Protective Life Insurance Company and West Coast Life Insurance Company, ceding specific blocks of structured settlement annuities as well as secondary guaranteed universal life policies to Resolution Life.
Protective will retain the administration of the policies.
The move is set to mitigate market risk and free up capital for Protective, enabling the company to invest in growth opportunities.
Protective plans to expand through acquisitions and strengthen its core retail businesses, which include protection, retirement, asset protection and employee benefits, while continuing to offer its “no-lapse” guaranteed universal life policy.
All of us get bombarded with robocalls everyday. Structured settlement payees are in a different class altogether. If you’re a structured settlement payee and you’ve made an inquiry, or filled out an online form or a petition to transfer has been filed on your behalf in
The goal of the FCC’s rule is to “strengthen consumers’ ability to revoke consent” by giving them more reign over their ability to withdraw consent from marketing communications. Instead of businesses requiring consumers to use a specific method to revoke consent, they must allow them to be able to withdraw consent using “any reasonable manner that clearly expresses a desire to not receive further calls or text messages.”
What is Considered Reasonable Opt-Out under the Telephone Communications Protection Act (TCPA) Update?
New Opt Out Rules Took Effect April 11, 2025 under the TCPA. The Bryan Cave law firm has done an excellent job of summarizing
Under the Opt-Out Rule, consumers may revoke prior express consent to robocalls and robotexts “in any reasonable manner…” which means that businesses can no longer specify an exclusive means to revoke consent to receive automated calls and or text messages.
Although the FCC did not provide an exhaustive definition of “reasonable” in its ruling, it provided guidance that reasonable means of revocation may include texting the words “STOP,” “QUIT,” “END,” “REVOKE,” “OPT-OUT,” “CANCEL,” or “UNSUBSCRIBE” in response to a robotext.
Additionally, consumers may revoke consent using an automated, interactive key press-activated mechanism on an automated call or through a website or telephone number provided by the business to process revocation requests.
The FCC also noted that if a consumer revokes consent using a method prescribed by the business, such revocation is definitively reasonable.
However, a “reasonable manner” may also include non-traditional methods of opting-out, such as a “voicemail or email to any telephone number or address at which the consumer can reasonably expect to reach the caller.”
Even if the consumer uses a non-prescribed method of opting out, there is a rebuttable presumption that the method was reasonable.
For instance, if the consumer calls a business’s headquarters and states that they wish to opt-out, or tells a cashier at a business’s brick-and-mortar location that they no longer wish to receive messages, it is presumed that the consumer opted-out in a reasonable manner. Ultimately, it will be the business’s burden to demonstrate why the opt-out request was not reasonable.
Why does MJ Settlements feel the need to lie to make money?
A. Falsely advertised structured settlement receivable as an annuity on Linkedin
“MJ Settlements occasionally posts its “Deal of the Day” on LinkedIn, which highlights a specific structured settlement annuity for sale, providing details like payment amounts, future dates, and the fixed interest rate. For example, one recent post featured a “MetLife-backed deal” with a 7.00% effective interest rate, offering monthly payments for a period of years”.
What MJ Settlements has been promoting to investors as an annuity on Linkedin is not actually considered an annuity under state insurance law
If you’re a senior and think MJ Settlements is selling you an annuity, think again.
If you’re a senior thinking you’ve just scored a real structured settlement annuity from MJ Settlements, CEO Todd Lesk, or marketing maestro Dan Shaff, it might be wise to holster that pen and moonwalk out of the room.
Following is a sample of the Definition of annuity under state laws so you can see for yourself, if you wish
CONNECTICUT Sec. 38a-432b. Regulations concerning solicitation and sale of life insurance and annuities to senior citizens. Disciplinary action. (a) The Insurance Commissioner shall adopt regulations, in accordance with the provisions of chapter 54, to (1) prevent misleading and fraudulent marketing practices with respect to the solicitation and sale of life insurance or annuities sold to senior citizens, and (2) set standards for the use of senior-specific certification and professional designations used in the solicitation and sale of such life insurance and annuities.
There is no wiggle room.
Helpful Tip If ANYONE is still trying to sell you a structured settlement receivable masked as “an annuity”, ask them to certify in writing that you are buying an annuity under state law and then verify independently. Don’t act and ask questions later, Chances are that they won’t certify..
In Florida and many other states, laws prevent businesses from making false claims about a product’s quality or purpose, or from giving consumers a misleading idea of what they’re purchasing.
WHAT IT IS, IS WHAT IT IS
B. MJ Settlements Lies about Return on Investment
What is Return on Investment?
Return on Investment (ROI) is one of the most basic of financial calculations. See the formula in the illustration to the right.
MJ Settlements on the otherhand presents the return as the total amount that you receive including your original investment in a pitch to investors on LinkedIn (see screenshot image* below). The investment is $13,477 and the investor must wait until December 10, 2033 to receive a single lump sum of $23,000.
Gee whiz! Is the ROI $23,000 or is it $23,000 minus the original investment of $13,477 which equals $9,523?
Funnily enough the “Interest Rate” corresponds to the Internal Rate of Return IRR
Let’s dive back into the mystery of MJ Settlements’ inaccuracies, where facts seem to take coffee breaks!
To make things even more absurd, MJ Settlements keeps playing a losing game of “Guess Who?” with the life insurance company. They repeatedly refer to the company that issued the annuity—where the structured settlement payment rights (the receivable investment) originated—as “Prudential Life Insurance Company.” But does “Prudential Life Insurance Company” even exist? Nope.
If MJ Settlements’ CEO Todd Lesk took a moment to check out the Prudential website for structured settlements, the facts might hit Todd Lesk like a “piece of The Rock.”Structured settlement products are insurance contracts provided by The Prudential Insurance Company of America (PICA), based in Newark, NJ. Annuity Structured Settlements | Prudential Financial.
MJ Settlements previously used the trademarked logo of The Prudential Insurance Company of America and other life insurer trademarked logos to perpetuate the false narrative. Following the posting of my prior blogs and notice to the insurers MJ Settlements removed the trademarked logos.
*screenshot image, captured August 26, 2025, used solely for critical commentary. No copyright claimed.
Related reading about why receivables are not structured settelment annuities or annuities at all.
