Litigation

Qualified Assignment, Is the Assignee an Insurance Company?

By John Darer

In a discussion about qualified assignments an NSSTA member's website reads:

"From the plaintiff?s perspective, an assignment to a financially secure insurance company gives them the assurance that future payments will be made as promised. For many plaintiffs, this assignment to the life company alleviates the stress of future contact with the defendant, their insurer, or any party responsible for the injury".

Is the above statement correct?

Looking at the qualified assignment programs of current structured annuity companies

Use NON-insurance special purpose shell company as qualified assignee

The qualified assignees for the structured settlement programs of Allstate Life Insurance Company and Allstate Life Insurance Company of NY, Pacific Life and Annuity Company, The Prudential Insurance Company of America, American General Life Insurance Company, John Hancock Life Insurance Company, Liberty Life Assurance of Boston

Use NON insurance company as qualified assignee

The qualified assignees of Hartford Life Insurance Company, Metropolitan Insurance Company

Use insurance company (non life) as qualified assignee

The qualified assignees of American International Life Assurance Company of New York

Use life insurance company as qualified assignee

The qualified assignee of New York Life Insurance Company

Thus the NSSTA member's statement would only be true IF and only IF the structured settlement is placed with New York Life Insurance Company

Other articles inspired by  Qualified Assignment bloopers published by members of the settlement profession

December 14, 2008  IRC 130 Blooper By Forge Consulting
November 11, 2008 Alarming Number of Attorneys Unwittingly Exposing Their Clients By Not Having Fundamental Understanding of Structured Settlement Documents. Some Settlement Consultants Too!
September 17, 2008 Structured Settlement Industry Teachers Must Demonstrate Superior Financial Literacy and Command of Facts to Inspire Confidence

Full post as published by Structured Settlements 4Real on January 03, 2009 (boomark / email).