Litigation

Settlement Professionals Inc. (SPI) continues to use outdated "props" to support solicitation to hire the company for lucrative insurance business from plaintiff lawyers. It has dedicated an entire web page to what it calls the AIG "Smoking Gun" memo.  Here are some comments on the memo:

1. The memo is 4 1/2 years old.
2. The management structured of the AIG structured settlement operation has changed.
3. Kharyne Neptune is no longer AIG's National Director of Structured Settlements, Ismael Acevedo is the current director. SPI has apparently neither made an effort to contact Mr. Acevedo nor made an effort to cite the current practice of the company.
4. The distributor of the AIG "smoking gun" memo, Nacado D. King, is no longer involved with the management of AIG structured settlement program.
5. Alfred W. Bodi is neither on the AIG panel of structured settlement brokers, nor President of Structured Financial Associates, Inc. (SFA)
6. The management of AIG has changed twice since the memo. Maurice R. Greenberg stepped down on March 14, 2005. He was replaced by Martin Sullivan who recently resigned and replaced by Robert Willumstad.
7. Maurice R. Greenberg's nickname is "Hank" not "Mo"
8. Since the "recent (2006) headlines" that SPI continues to highlight concerning Maurice "Hank" Greenberg, Eliot Spitzer was elected Governor of the State of New York, was revealed to have participated in a high end prostitution ring, including the now infamous tryst with prostitute Ashley Alexandra Dupre and resigned as Governor due to the scandal.

9. While being the lone swimmer in shark infested waters is a powerful metaphor, the fact remains that more than one swimmer may not be enough...ask the survivors af the USS Indianapolis June 29, 1945.

In my opinion the memo could have been written more clearly. As it was written there is a mixed message:

• The memo stated a recommended  or preferred practice at the time not a mandate. I strongly suggest that anyone who has a question about AIG structured settlement program contact Ismael Acevedo for the current facts rather than relying on SPI.
• Given that most structured settlement brokers are independent contractors working on commission, Illustrating a structured settlement quote that is not competitive is likely to reduce the likelihood that a savvy plaintiff or plaintiff attorney will accept a structure and meet the perceived 2004 goals stated in the memo.
• The "unless compelled" statement  selectively emphasized by SPI, contradicts the statement below.
• The memo states "Do not simply give AG or AI Life the last right of refusal but also the FIRST right of refusal. This can be achieved by running a cost per thousand (of the non AIG company) when you quote a case or by calling AG or AILife to see if they will match the other company by providing a day rate (daily rate) or by improving their rated age".  Diversification question aside, if AG or AILife match the best rate in the market place where is the harm?

Message

• Aggressively pawning off an old memo as current fact just undermines the credibility of your argument.
• In the opening lines to a subsequent video on Approved Lists (Part 2) posted on Speaking of Settlements, SPI President Jack Meligan also mischaracterizes what the the United States Constitution says. In the video Meligan says we should "listen to the founding fathers" and states "the problem with approved lists are it's a violation of all of our constitional rights to freedom of choice" . While I agree with Meligan that choice is desirable for plaintiffs I'm not sure it rises to the level of a constitutional question. It's also safe to say that in the year 1791 neither James Madison or the rest if the Founding Fathers had any idea what a structured settlement was.