Litigation

New York Licensed Structured Settlement Broker

By John Darer

THERE IS NO SUCH THING AS A NEW YORK "LICENSED STRUCTURED SETTLEMENT BROKER CONSULTANT"!  It's marketing B.S.

Consider these facts:

1. Structured settlements are often funded an annuity.
2. A structured settlement annuity is a form of annuity that permits one or more types of customizable payment streams to the payee.
3. To place annuities in New York** you must possess an active life insurance license.
4. Therefore, to place structured settlement annuities in New York requires an active life insurance license.
5. There are two types of life insurance licenses in New York: (a) a life agent's license which requires appointment with the annuity issuer and (b) a life broker's license which does not.  The type of license you hold will depend on the nature of the licensee's practice.  Some licensees possess both a life agent's AND a life broker's license.
6. It is important to note that from a licensing standpoint New York State DOES NOT MAKE A SEPARATE DISTINCTION between life insurance agents or life brokers and structured settlement brokers, agents, or "broker consultants".
7. Furthermore, structured settlements using United States Treasury Bonds as the alternative permissible qualified funding asset, DO NOT REQUIRE any sort of life insurance license.

Courts will insist on New York admitted structured annuity companies where structured settlement annuities are used in minor's cases or other matters requiring Court approval.  If you are an adult contemplating a structured settlement annuity as a New York resident, you will also want to only use New York admitted structured annuity issuers.

The New York "Licensed Structured Settlement Broker Consultant" who inspired this article also continues to advertise the Life Insurance Guaranty Corporation of New York. The insurance law is clear in regard to a prohibition on use of the LIGCNY in advertising. A website is considered advertising.

Term "Licensed Structured Settlement Broker Consultant" Is a Canard  September 20, 2008

** and elsewhere.

Full post as published by Structured Settlements 4Real on January 28, 2009 (boomark / email).