by Structured Settlement Watchdog Is a structured settlement annuity ours, yours, or theirs? The image was captured on January 8, 2026. It i
Is a structured settlement annuity ours, yours, or theirs?
The image was captured on January 8, 2026. It is part of an online ad from a structured settlement factoring company. This ad is awkwardly placed in a news story about a fatal shooting in Minneapolis, Minnesota on January 7, 2026.
The tag line “Cash Our Your Annuity” presents a easily rebuttable presumption:
Key Points
Structured settlement annuities are not owned by structured settlement payees.
Structured settlement payees can’t sell what they do not own.
Structured settlement payees can sell structured settlement payment rights. The sale must follow IRC 5891 and applicable Structured Settlement Protection Acts.
Investors in structured settlement receivables do not own structured settlement annuities,
” Secondary Market Annuities” are not annuityies at all. They are receivables.
Is Buying a Structured Settlement Receivable “Like Buying a Barely Used Luxury Car” ?
The Misleading Claims about Structured Settlement Receivables https://settlements-structured.com/f/the-misleading-claims-about-structured-settlement-receivables
Is Buying a Structured Settlement Receivable “Like Buying a Barely Used Luxury Car” ?
Unravel the meanings behind 'Bad to the Bone' in structured settlements, where we dissect backbones and misplaced metaphors.
A company called Faster Capital has recently published article that refers to qualified assignments as the “backbone” of a structured settlements, flip flopping between “backbone” and “cornerstone”.
DCF Annuities- No backbone or Cornerstone. Blue circles with arrowed inward arcs.
Negotiating a Structured Settlement, by CBC Settlement Funding factoring company lead generator Annuity.org., No backbone or cornerstones, Circles and Arcs. No arrows
Techmirrow.Net Blue Circles and Green Arcs,
Are Unassigned Structured Settlements Spineless Jellyfish?
Hardly! Did you know that many structured settlements entered into by the United States of America under the Federal Torts Claims Act (FTCA) are owned by the United States. There is no qualified assignment. But you know what? The United States government has often opposed factoring of structured annuities owned by the United States of America. And does anyone know of any of those people who suffered the SuttonPark NIghtmare as a result?
What is a Qualified Assignment?
A qualified assignment is a contractual transfer of a liability to make periodic payments in a to a third party (qualified assignment company). The qualified assignment company company may earn a minimal fee for taking on the obligation (ranging from $0-$750 for assignment companies related to annuity issuer)
For a deeper dive into the subject of qualified assignments, please visit 4structures.com at the following link What is a Qualified Assignment?
Trick or Tweet? Structured Settlement Cash Now Ghouls Tell You to Take a Pay Cut and Relax
Stone Street Capital’s Perfect Metaphor for Financial Exsanguination
Why Does “Little SYSS” Dis The Elderly and Disabled While Bashing Competitors?
Structured Settlement Social Media Road Kill on Qualified Assignment
Qualified Assignments 101, What is a Qualified Assignment?
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Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
How do you obtain a structured settlement quote? What to Look For?
Structured Settlement Quotes | Guide to Structured Settlement Quotes How do you obtain a structured settlement quote? What to Look For? by John Darer® CLU ChFC MSSC CeFT RSP CLTC https://structuredsettlements.substack.com/p/structured-settlement-quotes-guide
Make Sure That You Are Seaking to a True Structured Settlement Expert, Broker or Consultant
First, make sure that you are speaking to a true structured settlement broker, expert or consultant and not a factoring company or cash flow company representative masquerading under any of these terms. Check that the personal you are speaking to is licensed in your state and verify credentials.
If You Decide to Move Forward With a Structure, Be Sure That the Annuity Issuer is Licensed to do Business in Your State
Most state insurance departments in the United States have consumer protection regulations which require actuaries at insurance companies to certify that each liability has an asset to match it on an annual basis. Therefore, the insurance companies issuing structured settlement annuities must be careful in rate setting to assure that they have a balance of assets to meet their obligations. Should it take on too much premium and the corresponding liability, without assets to match, an insurance company could find itself in hot water with the regulators.
What are the types of structured settlement quotes?
On a very basic level there are several types of quotes: Book Rates, Daily Rates and either of the two with a Rated Age or special impaired risk pricing .
Book rates are the published rates of the structured settlement annuity issuer. The “book” refers to the fact that in the pre-computer era, rates literally came from a rate book or rate sheet. Today most companies make such rates are available for download online to its appointed agents/brokers so that your structured settlement broker, expert, consultant or settlement planner should have in his/her office or installed on his/her note book computer. Book rates change periodically. Generally book rates are good for a certain number of days
Daily rates, as you might assume, are generally good “for the day of quote only”, a ” blue plate special”. Given that bond markets fluctuate daily there may be bonds out there on a particular day that will permit the annuity issuer to issue a more aggressive rate. In part because of the asset/liability matching requirement most annuity issuers require daily rate pricing on very large cases (definition of “very large” varies by company). Note that some structured settlement annuity issuers will hold daily rate pricing for 24 hours.
Rated age pricing applies to book rates or daily rates.
A rated age only affects the cost of any life contingent structured settlement annuity benefit.
Rated ages are opinions based on medical information concerning the annuitant that causes the underwriter to believe that the plaintiff or annuitant has a shorter than normal life expectancy. Based on this opinion the annuity issuer is wiling to issue the annuity at a lower cost/higher yield and absorb the mortality risk.
A rated age can either reduce of the cost of providing a known life contingent benefit or it can boost the yield per claim dollar if buying a life contingent benefit and the contribution is known.
Rated ages vary by annuity issuer and the effect of the rated age on the pricing of the annuity will vary by company and even by the type of benefit desired.
If you are seeking a benefit that is for a certain period of years or is a guaranteed lump sum payment then the rated age has no effect on the cost of the structured settlement.
Structured settlement annuity issuers specialize in different types of cash flows
Some structured settlement annuity issuers may be better short term. Some may be better long term. Some may specialize in lump sums. Others may be more competitive at older ages or with deferred start dates. It seems complex, but a good structured settlement broker, expert, or consultant should be skilled at weaving the best plan/offer together for you or your client. Such plan/offer may involve one or more structured settlement annuity issuers.
Most structured settlement brokers today have the ability to send you structured settlement quotes via email for speed, ease of storage and re-transmission (to clients or other advisers) and reduce your paper clutter.
A quote for “selling your structured settlement annuity payment rights” is not the same as a “structured settlement quote.”
To clarify any confusion caused by factoring company internet advertising, it should be referred to as a “factoring quote.”
Beware charalatans that try to position structured settlement receivables as annuities and take your investment dollars under false pretenses.
Structured settlement receivables, which have been marketed to investors under a variety of terms, sometimes scam labeled terms such as “secondary marklet annuity” or “secondary annuities”, sometimes enahcing the deception by using insurance company logos and company names.
The receivables are not annuities and do not have the protections that annuities have.
If you buy a structured settlement receivable there is a strong chance that your payments will be subject to payment servicing agreement. For a deep dive into the subject of Structured Settlement Receivables, consider this blog I posted on The Settlement News Network and and the following additional blogs
Investing in Structured Settlements A Guide for Unwary Investors
SuttonPark Payment Servicing Nightmare | Why is the Industry Still Dealing With 15 Year OId Questions? – Structured Settlements 4Real®Blog 2025
Search Results for “josh wander” – Structured Settlements 4Real®Blog 2025, withs repect to his recent indictment
Updated October 29, 2025
How Do Structured Settlements Work | Structured Settlements Explained (4structures.com)
While the terms "guaranteed" and "certain" are often used synonymously by those holding an insurance license, including some settlement planners and structured settlement brokers and even lawyers, such use is inaccurate and can lead to misinterpretation and/or misunderstanding by Payees.
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
Brain Injury
Burn Injury
Car Accidents
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Daycare Injury
Disability
Dram Shop Liability
Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
Employment Practices Liability
Environmental and Toxic Injury
Funding Agreements
Injury At Work
Life Settlements
Mass Tort
Medical Malpractice
Medicaid
Motorcycle Accidents
Personal Injury
Product Liability
Real Estate
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Structured Installment Sales
Special Needs Trusts
Settlement Trusts
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Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Examine the challenges and opportunities presented by the Affordable Care Act for insurance claims and settlement negotiations.
In 2016, I noted that “while the Affordable Care Act aimed to make health insurance more affordable, “recent market developments and projected rate increases for upcoming renewals present challenges to using ACA policies as a means to mitigate damages during settlement negotiations.” Affordable Care Act Blog August 22, 2016
Less than a decade later, the political climate continues to validate my cautious assessment of the challenges of the strategy..
Claims and Litigation Management Suggested Use of ACA to Mitigate Damages in Your Personal Injury Case at Mediation
“Even before trial, the availability of insurance through the ACA may be more effectively raised in settlement discussions. Defendants should prepare multiple cost scenarios, including the annuity cost of the plaintiff’s life care plan, the annuity cost of the plaintiff’s life care plan with insurance, the annuity cost of the defendant’s life care plan, the annuity cost of the defendant’s life care plan with insurance, and the annuity cost of the plaintiff’s life care plan utilizing the proper paid rates for the medical goods and services identified in the life care plan. Additional savings can be realized on these annuitized cost projections by utilizing medical underwriting. The structured settlement consultant will ascertain rated ages from the life insurance carriers. From these analyses, you can then work with your defense team and annuity broker to develop settlement options. The guaranteed income tax free annuities that are used to fund the structured settlements add a protective layer to the plaintiff knowing that they cannotoutlive their settlement. Those options can include utilizing special needs trusts and Medicare Set Asides as further vehicles to provide for a plaintiff’s future needs at more realistic values. In the end, the goal is to demonstrate to plaintiff, utilizing all available insurance and public benefit options, how their medical care can be maximized using the amounts being offered in settlement” [ Source: CLM 2016 Orlando Florida]
The CLM piece argued in 2016 that the ACA is here to stay having survived multiple high court challenges and the longevity of insurers. [ Poignant comment.. How is that working out in late 2025?]
Impact of ACA Policy Rate Increases on Use in Settlements
I observed that settlement offers which trade the cost of future medical care for a structured settlement that pays for an ACA compliant medical insurance policy do not completely solve the problem for the following reasons:
Uncertainty of continued insurer participation in the marketplace. Several major health insurers are leaving exchanges. These include big names such as AETNA United Healthcare and Humana.
Uncertainty of cost of premiums. Without premium rate stability it is impossible to accurately fund medical insurance premiums with a structure. One will often come up short. If you have a structured settlement that pays $600 /month with a 3% COLA and then premiums go up by 10%, I asked ” where does that leave you?” Then run that deficit out 10 years or longer, perhaps to where we are today. The Milwaukee Journal Sentinel reported August 21 2016 that proposed increases could range from 5.44% to 37.88% statewide, according to filings with the federal government. In Milwaukee County, the smallest proposed increase is 9.06%. Some will be eligible for subsidies, but those ineligible for the subsidies are facing increases of 20% or more!
Subsidies, in the form of credits, are available to people with incomes up to $47,520 for one person and $97,200 for a family of four. The subsidies scale back for those with incomes close to the thresholds. How about today? See Some Americans are getting sticker shock as they shop for ACA insurance, a November 3, 2025 CBC News report by Aimee Picchi “the average premium for a mid-level insurance plan surging 26% this year.
Why are premiums on ACA policies rising so much?]
The market is smaller than projected, I wrote, in 2016. The people who have bought health plans overall are sicker than predicted. And health insurers have incurred larger losses than anticipated. Health care costs continue to rise. Fast forward to 2025 and a deeper and more indelible underscore to the question of How About Now?
In my November 10, 2011 blog commentary Making a Settlement Offer in the Form of a Supplemental Needs Trust – Structured Settlements 4Real® Blog, I made the contemporaneous observation that “sometimes defendants make offers combining structured settlement and supplemental needs trust (or special needs trusts). While there is nothing inherently wrong in making an offer in this manner (the defense can make a settlement offer in whatever form it likes), and the strategy may prove beneficial on a case by case basis, the question is, can a defendant “force” a supplemental needs trust (or an ACA Plan or an HMO) on an adult plaintiff with whom the defendant is in litigation where there is good liability for the plaintiff?
Staten Island NY Obstetric malpractice case
GIVENTER v. REMENTERIA 184 Misc.2d 744 (2000) 705 N.Y.S.2d 863 Full caption” EVAN GIVENTER, an Infant, by His Mother and Natural Guardian, DONNA GIVENTER, et al., Plaintiffs, v. JOSE L. REMENTERIA et al., Defendants. Supreme Court, Richmond County (February 18, 2000) .
In a medical malpractice action, the jury awarded the plaintiffs, a severely brain damaged child and his parents, a verdict of $53,735,955.The defendant doctor and hospital have petitioned this court, pursuant to CPLR 4545 (a), to reduce the amount of that award by applying collateral sources to pay for the future cost of medical care and therapies (rehabilitative services) to be received by the child.The defendants seek to apply the mother’s employee health insurance plan and the benefits received while the child is in school pursuant to the Federal Individuals with Disabilities Education Act (IDEA) to offset the financial burden placed upon the defendants by the large jury award.They also seek to have the plaintiffs enroll in a managed health care plan (HMO) where the defendants would pay the premiums.
In rejecting the HMO argument, the Giventer court reasoned that insurance which the plaintiffs do not have can never be reasonably certain to replace what the jury awarded and cannot be considered a collateral source offset.
“The defendants also suggest that the infant plaintiff can purchase his own health insurance in order to provide them with a collateral source offset. Mr. Pessalano, the defendant’s rehabilitation expert who testified at the collateral source hearing, stated that Evan Giventer could purchase insurance through Blue Cross of New Jersey for $3,000 to $3,500 per year, which after a one-year waiting period would pay out literally hundreds of thousands of dollars per year for Evan’s extensive nursing care. However, when cross-examined on this point, Mr. Pessalano’s testimony was vague and speculative. He responded that: “[i]t would pay for a significant amount” but that he could not say how much without seeing a policy. When asked if he could provide a copy of such a plan, he responded that he did not have one.
The defendants also suggest that Evan be required to become a member of a managed health care plan, an HMO. Evan currently lives at home with his family. It was never proven to this court that any insurance company would approve home nursing care as opposed to care in a residential institution. No one testified as to what level of care an insurance company would permit. The jury’s awards will permit Evan and his parents to obtain the care that they choose, from doctors and nurses of their choice, without any limitations such as preapproval or being on a list for treatment or any other constraints which accompany managed care. An HMO would not replace what the jury awarded and cannot give rise to a collateral source offset. Nor can the infant plaintiff or his guardians be required to join an HMO which may or may not accept Evan and his preexisting condition”. (Emphasis ours)
Since Giventer many questions have arisen
Have healthcare insurance policies become more liberal or more restrictive?
How restrictice are they likely to be in the future?
Is it possible to predict the increase in premiums on these policies?
What will be the impact of low interest rates on health insurers (during periods of low interest rates)
Are more companies entering the long term care insurance market, or leaving it?
There are many benefits to a Supplemental Needs Trust, but there also many restrictions and /or limitations.
A New York Defense Perspective in October 2024
“The Appellate Division, Second Department recently encountered a question of first impression regarding the interplay between the ACA and CPLR: “whether a defendant may be entitled to a collateral source hearing pursuant to CPLR 4545 for the purpose of establishing that an uninsured plaintiff’s future medical expenses will, with reasonable certainty, be covered in part by a private health insurance policy, as long as the plaintiff takes the steps necessary to procure the policy.”i
In Liciaga v. New York City Transit Authority, N.Y. Slip Op. 04257 (2d Dep’t August 21, 2024), the plaintiff sought to recover damages for injuries he sustained while conducting a track replacement project on an elevated subway line. The defendants were found negligent and the case proceeded to a trial on damages where the plaintiff was awarded, among other things, $40 million for future medical expenses. The defendants moved to set aside the verdict or, in the alternative, for a collateral source hearing on the issue of future medical expenses. The trial court denied the defendants’ motion and the defendants appealed.
Citing Nunez v. City of New York, 85 A.D.3d 885, 887¬–88 (2d Dep’t 2011… “To be entitled to a collateral source hearing, a defendant “must [merely] tender some competent evidence from available sources that the plaintiff’s economic losses may in the past have been, or may in the future be, replaced, or the plaintiff indemnified, from collateral sources.” The defendants in Liciaga argued that they were entitled to a collateral source offset because, though the plaintiff was uninsured at the time of his accident, he was eligible for insurance coverage through the ACA”.
The court relied on the plaintiff’s common law obligation to mitigate damages and the “minimum essential coverage” mandate under the ACA as further support for its conclusion.
See Second Department: Defendants Are Entitled to Collateral Source Hearing for “To-Be Obtained” Insurance Coverage Under the ACA | Barclay Damon October 17, 2024
Even if You Can Jump, there is the Question of ” How High?”
It’s not particularly credible to simply say you can buy a health insurance policy without thoughtful consideration and analysis of items such as:
1. Premiums. The ability to pay premiums however high they go. If you can’t afford the premium or lack the resources to do so that isn’t very helpful. Annual premium inflation is one issue. Mitigation through using a structure is helpful to a degree.. Premium increases generally exceed the fixed COLAs available with structured settlement annuities, Indexed linkedin options may help to a degree but there needs to be a New York admitted company that both has indexing from from the start and and does not terminate when benefits start. Pacific Life hopes to introduce a solution that may be helpful in 2026.
2. Lack of competition on pricing in many states for the most comprehensive of coverage
2. The continued availibilty of subsidies and the ability to qualify for the subsidies.
3. Coverages, Exclusions and Utilization Review
4. Benefit caps, both for certain types of treatments and aggregate5
The Senate deal allows for a December 2025 vote on whether to extend ACA subsidies The outcome will determine if Obamacare coverage remains affordable for millions of Americans.
Is Obamacare ending? What government shutdown deal means for health care Newsweek November 10, 2025
“the shutdown deal temporarily reopens the government, but the long-term fate of Obamacare subsidies is unresolved“
The volatility of Bitcoin and other crypto currencies render them generally unsuitable for injury victims and would not likely be approved f
Anyone familiar with our blogs, the settlement planning industry, suitability standards, and the judicial role in approving minors’ settlements will understand that an investment boasting a tempting 99.05% annualized rate of return over 13 years, coupled with an extraordinary 149.87% standard deviation during the same period*, is highly unlikely to be a suitable choice for substantial allocation for injury victims who cannot tolerate such risk. (*Backtest by Curvo.eu, for standard deviaton in USD) In statistics, the standard deviation is a measure that is used to quantify the amount of variation of a set of data values. Used above as a measure of volatility
According to Ray Dalio of the hedge fund Bridgewater Associates, it is generally not deemed suitable for significant allocation by either everyday or prominent investors. However, in 2025, Dalio revised his position, increasing it beyond the 2% allocation level he held in 2022, alongside gold. (see Ray Dalio Says 15% In Bitcoin Or Gold May Be Essential As Fiat Currencies Face Devaluation Risks July 28, 2025
Structured Settlements as a “Bridge to Crypto” a New Frontier for Factoring Companies?
Says Anthony Cioppa, who runs America Annuity Funding LLC, a Boca Raton Florida factoring company “For years, we’ve helped people access their structured settlement payments early, so they could invest in real estate, launch a business, or take control of their finances. But today’s wealth-building playbook is being rewritten. With Bitcoin now embraced by institutions like BlackRock and the U.S. financial system adapting to crypto, we’ve entered a new era. Cioppa said in a press release,”Our Structured Strategy helps people reallocate capital from a slow-moving annuity into the best-performing asset class of the past decade.”
Cioppa continues “The process, which is fully compliant with all state-level Structured Settlement Protection Acts, begins with a lump-sum offer from Structured Strategy for the client’s future payments. Once the buyout is court-approved, the client receives their funds and Structured Strategy helps them navigate the process to acquire Bitcoin through an exchange or platform of their choice while the client maintains full control and ownership of their assets”.
Cioppa is a hard working guy who is very active on social media. You can see Cioppa promoting a sell structured settlements to crypto strategy on Instagram, YouTube and through press releases placed on various well known platforms..Cioppa does not appear to registered through FINRA or IAPD portals.
VASP Search Tool: Discover and Validate Crypto Providers
I encourage each and every member of the structured settlement and settlement planning community and every trial lawyer in America to go to school on what Cioppa is promoting and decide for themselves whether such a strategy is appropriate for their particular clients’ circumstances.
Laws restrict investments for minors and incompetents, at the time of settlement
It is unlikely that judges would approve the allocation of a minor’s or incompetent person’s settlement funds into cryptocurrency investments.
My message is clear in prior posts. The volatility of Bitcoin and other crypto are generally not suitable for injury victims and probably would not be approved for injury victims where court approval of settlement is required. For example see New York CPLR § 1206. Disposition of proceeds of claim of infant, judicially declared incompetent or conservatee, which states:(c) the court may order that money constituting any part of the
property be deposited in one or more specified insured banks or trust
companies or savings banks or insured state or federal credit unions or
be invested in one or more specified accounts in insured savings and
loan associations, or it may order that a structured settlement
agreement be executed, which shall include any settlement whose terms
contain provisions for the payment of funds on an installment basis,
provided that with respect to future installment payments, the court may
order that each party liable for such payments shall fund such payments,
in an amount necessary to assure the future payments, in the form of an
annuity contract executed by a qualified insurer and approved by the
superintendent of financial services pursuant to articles fifty-A and
fifty-B of this chapter. The court may elect that the money be deposited
in a high interest yield account such as an insured "savings
certificate" or an insured "money market" account. The court may further
elect to invest the money in one or more insured or guaranteed United
States treasury or municipal bills, notes or bonds. This money is
subject to withdrawal only upon order of the court, except that no court
order shall be required to pay over to the infant who has attained the
age of eighteen years all moneys so held unless the depository is in
receipt of an order from a court of competent jurisdiction directing it
to withhold such payment beyond the infant's eighteenth birthday.
Notwithstanding the preceding sentence, the ability of an infant who has
attained the age of eighteen years to accelerate the receipt of future
installment payments pursuant to a structured settlement agreement shall
be governed by the terms of such agreement. The reference to the age of
twenty-one years in any order made pursuant to this subdivision or its
predecessor, prior to September first, nineteen hundred seventy-four,
directing payment to the infant without further court order when he
reaches the age of twenty-one years, shall be deemed to designate the
age of eighteen years; or
(d) the court may order that the property be held for the use and
benefit of such infant, incompetent or conservatee as provided by
subdivision (d) of section 1210.
“Bits and Bobs”
1. Cryptocurrency Crash Deepens: $1.3 Billion Wiped Out In 24 Hours November 4, 2025
2. A Closer Look at Bitcoin’s Volatility by Zack Wainwright Fidelity Digital Asset May 1, 2024
3. In a 2022 episode of the We Study Billionaires podcast, billionaire hedge fund manager Ray Dalio was asked by co-host William Green whether allocating 1% to 2% of one’s portfolio to bitcoin was reasonable. “I think that’s right,” Dalio replied. Dalio has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. Dalio is regarded as one of the greatest innovators in the finance world, having popularized many commonly used practices, such as risk parity, currency overlay, portable alpha and inflation indexed bond management.
4. Five Ways Fraudsters May Lure Victims Into Scams Involving Crypto Asset Securities – Investor Alert | Investor.gov Investor Bulletin Securities and Exchange Commisions (SEC) May 29, 2024
5. Crypto Freefall Gives Retirement Plans New Reason to Avoid Risk [Bloomberg May 17, 2022]
“Upheaval in the cryptocurrency market puts teeth in a US Labor Department push to discourage retirement plans from adding digital assets to their 401(k) plan lineups. Crypto markets lost more than $270 billion just weeks after the department’s Employee Benefits Security Administration issued strongly worded guidance (CAR No. 2022-01) all but banning retirement plans from offering crypto assets.
6. On June 29, 2022 an article by Alex Hern and Dan Milmo appeared in The Guardian with the headline “Crypto crisis: how digital currencies went from boom to collapse “Savers talk of devastating losses as assets such as bitcoin and ‘stablecoins’ like terra fell sharply”
7. On August 1, 2022 Nerd Wallet published an article “After a Fall, Crypto Winter Sets In“
“Cryptocurrencies hit a rough patch in 2022, with prices falling and some companies facing serious financial issues”. 8. On August 31, 2022, Fortune published The Bitcoin crash has wiped out over $1.3 billion in value from Michael Saylor’s Bitcoin holdings. Now he’s being sued for tax fraud Fortune reports that the 57-year-old entrepreneur made his name during the dot-com bubble of the late 90s and is well known for having lost $6 billion in a single day during the crash that followed.
9.. The Curious Case of QuadrigaCX – Energent Media June 23, 2025 “What was at one point the leading cryptocurrency exchange in Canada, QuadrigaCX has devolved into a tangled mess of lost user funds, creditor protection initiatives, and mystery surrounding the deceased founder and missing funds. Now, QuadrigaCX is officially transitioning into bankruptcy following a ruling by the Nova Scotia Supreme Court that transfers the exchange out of the Companies’ Creditors Arrangement Act (CCAA), which it has been operating under since late January 2025″
10. If that’s not enough, on April 26, 2022, the New Jersey law firm of Console & Associates discusses data breaches related to crypto
“Over recent years, Bitcoin, Ethereum, Litecoin and other cryptocurrencies have surged in popularity and value as more and more people see the value that the asset class presents. However, hackers see the fact that everyday investors are now holding cryptocurrency as a major opportunity. In fact, over the past year, there have been several high-profile cryptocurrency hacks resulting in the loss of more than $14 billion dollars”.
11. Comedian Bill Murray loses $186,000 to hackers Bill Murray recently held an NFT auction in which most of the recouped funds were in the said wallet. The statement showed that the hacker drained 90% of the entire funds in the wallet, leaving just a little over $500 in the wake of the act. Cryptopolitan September 3, 2022
12. May 12, 2022 New York Post reports “Bitcoin’s plunge slashes the fortunes of major crypto billionaires”, the Winklevoss twins lost 40% of their respective fortunes, more than $2 Billion each at the time the story was poublished in the NY Post.. Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, has lost roughly half of his on-paper fortune since March and is now worth about $11.3 billion”. Crypto billionaires losing fortunes as bitcoin tumbles (nypost.com)
13. “We’ve only scratched the surface of how bad the crypto crime wave has gotten June 13, 2022 LA Times by Matt Pearce
“These are tough days for cryptocurrency investors. Values are cratering. Prominent crypto firms are faltering. And it’s coming after a massive surge of criminal fraud that has been pummeling crypto users with unknown billions of dollars in losses with little relief in sight”
14. Bitcoin is down roughly 60% this year and some other tokens have lost even more. The ninth month of the year has historically been one of the worst for the largest cryptocurrency, falling every September since 2017. Bitcoin has averaged an 8.5% drop for the month over the past five years, according to Bespoke Investment Group”. August 31, 2022 Bloomberg
15. Says Fort Lauderdale’s and Owings Mills Maryland’s Richart Ruddie (also self-styled as “Richart Ruddie Annuity”), a bête noire of sorts in structured settlement circles due to his association with JRR Funding, AnnuitySold and related companies, which were banned from doing business in Maryland for 7 years from January 2018 for fraud: Frosh announces compensation in Structured Settlements lawsuit – The Southern Maryland Chronicle
“Losses of Bitcoin Value – As the shining light of the cryptocurrency industry, Bitcoin advanced in value to a high watermark of $69,000, but the erosion of that value has declined since November of 2021. The currency currently trades roughly around the $20,000 mark a high mark in 2018 that now feels like a low mark for the worlds most well known coin. That’s almost an 80% loss in just over 6 months”.- The Crypto Updates July 12, 2022
On a $1,000,000 investment that’s a $800,000 loss. Could you handle it emotionally? What if you were not physically able to work? What if that money represented compensation for the loss of your spouse, parent or child?
16. Bitcoin, Ethereum Nosedive: $445M Liquidated From Crypto Market (msn.com) September 19, 2022
17. Bitcoin Loses Steam Bitcoin is currently trading at $19,100, down 14% in the past week and down by around 4% over the past 24 hours. The world’s largest cryptocurrency is now down by a staggering 75% from its all-time high in November 2021 when its market capitalization was $1.27 trillion. It is now down to $366 billion.
18. Crypto: Treasury’s financial stability watchdog says fraud is rampant in digital currency markets (cnbc.com) December 16, 2022
How Good a Bull Rider Are You?
Those who hung on from 2022 until now, weathering the recent pullbacks, have likely come out ahead. But if you’re considering this strategy, you’d better respect the standard deviation. It’s like riding a bull at a rodeo—how long can you hang on to that bucking bronco before it throws you off?
I’m not sure we need to keep dragging this out. Is this the kind of rollercoaster ride we want to strap a vulnerable group of investors into?
The “Bitcoin-Shitcoin” Expression
Next time someone tries to “poo-poo” the renewable credentials of Bitcoin mining, remember AmityAge Mining Farm. Founded by Gabriel Kozak and Dušan Matuska, the Bitcoin mining facility uses human and animal waste to generate electricity for mining”. According to Matuska, using renewable energies such as biogas “shows that we can really accelerate the adoption of these renewables and make their return on investment higher in the end,” while it’s also a cheap energy source. An ecologically sound and low-cost way of generating electricity, biogas electricity plants convert waste into methane gas due to a fermentation process. The gas is then burned as fuel”. Read the full story here
In 2020, John McAfee opined that “Bitcoin is the true Shitcoin“. Oh dear!
Structured settlement annuitants receiving stable tax exempt income from a structured settlement, should not be groomed into selling structured settlement payment rights to zealous pennies on the dollar merchants from in South Florida or Maryland to put into volatile investments with a 150% standard deviation.
Beware the “Muthaforkers” | Warning to 18-21 Year Olds With Structured Settlements February 22, 2018
Structured Settlements | Settlement Planning News and John Darer Reviews. The structured settlements blog is a highly regarded source for st
Structured Settlements | Settlement Planning News and John Darer Reviews. The structured settlements 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. https://structuredsettlements.blog
Connecticut Structured Settlements and Settlement Planning Experts 2025
4structures.com LLC, headquartered in Stamford, CT, serves clients t
Connecticut Structured Settlements and Settlement Planning Experts 2025
4structures.com LLC, headquartered in Stamford, CT, serves clients throughout Connecticut, including Greenwich, Stamford, Darien, New Canaan, New Haven, Hartford, West Hartford, West Haven, Torrington, Danbury, Easton, Weston, Wilton, Windsor Locks, Norwalk, Middletown, New London, Pine Orchard, Ridgefield, Westport, Oxford, Stratford, Old Greenwich, Clinton, Stafford, Storrs, Groton, Harwinton, South Windsor, Milford, Glenville, Long Ridge, Stonington, East Hartford, Guilford, Litchfield County, Fairfield County, New Haven County, Waterbury, Shelton, and across 44 other states and the District of Columbia.
4structures’ President John Darer is a Structured Settlement Expert and Settlement Adviser in NY, CT, NJ, and across the USA. He is a recognized subject matter expert, licensed in 45 states and the District of Columbia, with over 40 years of experience in financial services and more than 30 years in the structured settlements and settlement planning industry.
Risks of Investing in Structured Settlement Receivables
John Darer’s incisive Structured Settlement Watchdog®
Structured settlements expert John Darer, the most prolific structured settlement blogger, provides comprehensive reviews of the latest structured settlements news and regularly offers fresh insights and expert opinions and commentary. https://structuredsettlements.substack.com/about
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How Do Structured Settlements Work | Structured Settlements Explained (4structures.com)
While the terms "guaranteed" and "certain" are often used synonymously by those holding an insurance license, including some settlement planners and structured settlement brokers and even lawyers, such use is inaccurate and can lead to misinterpretation and/or misunderstanding by Payees.
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
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Burn Injury
Car Accidents
Catastrophic Injury
Construction Accidents
Daycare Injury
Disability
Dram Shop Liability
Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
Employment Practices Liability
Environmental and Toxic Injury
Funding Agreements
Injury At Work
Life Settlements
Mass Tort
Medical Malpractice
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Special Needs Trusts
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Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Structured Settlement Survivor Payments. As Seen on the Internet about Structured Settlements this week. A. "If no beneficiary was designate
Structured Settlement Survivor Payments. As Seen on the Internet about Structured Settlements this week. A. "If no beneficiary was designated, the payments will become part of the recipient's estate and be distributed according to their will or state laws". The statement needs further clarification.
Commentary
1. If the Payee dies without having designated a beneficiary to the annuity issuer prior to the Payee's death, AND there are any remaining period certain payments or guaranteed lump sums, those payments will be paid, when due, to the Estate of the Payee. From there, payment will be distributed in accordance with the Payee's will, if there is one, or state intestacy laws if there is no will. See intestacy | Wex | US Law | LII / Legal Information Institute (cornell.edu)
2. If a Commutation Rider is in place when the Payee dies, any remaining certain payments and guaranteed lump sums are commuted to a lump sum in accordance with the terms of the commutation rider.
3. If the Payee dies after there are no remaining period certain payments or guaranteed lump sums then payments will cease at the Payee's death.
Structured Settlement Beneficiary | Why It's Important (4structures.com) May 8, 2024 update
Structured Settlement Beneficiary Designations (4structures.com) May 24, 2021
B. "All payments from a structured settlement are guaranteed"
Commentary
All payments from a structured settlement are contractually guaranteed in accordance with the terms of the contract.
When a structured settlement is established there are multiple contracts
A settlement agreement and release which establishes an obligation to pay periodic payments as damages in exchange for a release of claims.
A qualified assignment, which is a subsitution of obligors from a Defendant or his/her/its insurer(s) to a qualified assignment company
An annuity contract, which is purchased as a "qualified funding asset" by the qualified assignment company and is owned by the qualified assignment company.
How Do Structured Settlements Work | Structured Settlements Explained (4structures.com)
While the terms "guaranteed" and "certain" are often used synonymously by those holding an insurance license, including some settlement planners and structured settlement brokers and even lawyers, such use is inaccurate and can lead to misinterpretation and/or misunderstanding by Payees.
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
Brain Injury
Burn Injury
Car Accidents
Catastrophic Injury
Construction Accidents
Daycare Injury
Disability
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Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
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Funding Agreements
Injury At Work
Life Settlements
Mass Tort
Medical Malpractice
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Real Estate
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Tax Deferral Solutions for Personal Injury Attorneys
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Structured settlements expert John Darer reviews the latest structured settlements news and information and provides expert opinion and commentary, including settlement planning issues/ ideas for settlement management, incisive Structured Settlement Watchdog® commentary that may be helpful to lawyers, plaintiffs, claims adjusters, judges, the news media, sellers and buyers of structured settlement receivables,and interested others. The style is spicy, informative, irreverent and effective. The most prolific structured settlements blogger, Now in 20th Year and now on Substack! Check back daily for something new. Structured Settlement Insights: Latest Updates & Tips
Town of Glen Rock Wyoming Target of Show Cause in Wyoming Public Records Act Request Over QSF
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Introducing the Fair Factoring Fund, Established by the National Structured Settlements Trade Association (NSSTA)
John Darer reviews the differences between fixed income structured settlements annuities and index linked structured settlment annuities in
It's a Jumble Out There | Fixed Income Annuity, Fixed Indexed Annuity or Index Linked Annuity? by Structured Settlement Watchdog. It's a Jumble Out There!
I was surprised to find this fixed income annuity Jumbleaya on the website of a group of esteemed industry colleagues:
Have a seat folks!
"A fixed income annuity is an annuity with some guarantee against loss while also allowing for market rates of return inside the annuity.
The upside in these annuities is usually capped at some amount, but the annuities offer downside protection (i.e., if the markets go down, the annuity payments remain the same).
So, a fixed annuity often offers the potential of better rates of return than the structured settlement annuity fixed rates are offering".
Note: I've bullet pointed to isolate the 3 statements for ease of appreciating the contradiction.
What does Fixed mean?
Fixed Definition & Meaning - Merriam-Webster "not subject to change or fluctuation (e.g. a fixed income) "
What is an Income Annuity?
Income annuities are an insurance product issued by life insurance companies that convert a premium to income starting immediately ( Immediate Annuity or " SPIA" ), or in the future (Deferred Income Annuity or "DIA")
What Is a Fixed Annuity? Uses in Investing, Pros, and Cons (investopedia.com)
What Are Index Linked Structured Settlement Annuities?
An indexed linked structured settlement annuity is a tax-advantaged type of structured settlement option that provides protection for when the market goes down, combined with an opportunity for growth that varies with the market index the annuity is tied to. It gives you more income growth potential than a fixed income structured settlement annuity. or a fixed income structured settlement income annuity with a fixed percentage COLA, along with less risk and less potential return than a variable annuity.
Three life insurance companies that issue structured settlement annuities have index linked structured settlement annuity options:
Pacific Life Insurance Company and Pacific Life & Annuity Company introduced their Index Linked Annuity Payment Adjustment Rider (ILAPA), in 2014 ILAPA (pacificlife.com)
Independent Life Insurance Company introduced iStructure in 2021 iStructure Annuity | Industry's 1st Uncapped Index-Linked Structured Settlement Annuity ; and
The Prudential Insurance Company of America introduced Income Advantage Prudential Income Advantage | Structured Settlement Index Linked (4structures.com) Guaranteed Income Secure Growth Potential (scene7.com). Prudential refers to its product as "index linked" in consumer facing communication.
Currently, no life insurance companies offer variable structured settlement annuities.
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
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Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Investors, financial advisers and insurers of financial advisors should be mindful of a crucial provision of the 2017 Life & Health Guaranty
Investors who buy structured settlement receivables are exposed to potentially devastating financial risk to their investments in the event of insolvency of the life insurance company that issued the annuity, that funded the structured settlement payment rights purchased by the investor.
Investors, financial advisers and insurers of financial advisors should be mindful of a crucial provision of the 2017 Life & Health Guaranty Associations Model Act (#520) which has been adopted by the majority of the United States when evaluating the suitability of structured settlement receivables as investments.
What is a Structured Settlement Receivables Investment?
A structured settlement receivables investment is an opportunity to invest money to acquire an assignment of someone else's structured settlement payment rights (or portions of those structured settlement payment rights) in the structured settlement secondary market or tertiary market.
Are Investors in Structured Settlement Receivables in the Same Position as a Structured Settlement Payee,or Someone Who Buys a Retirement Annuity?
No, an investment in a structured settlement receivable is NOT the same as buying any retirement annuity, or the purchase of a structured settlement annuity by a qualified assignment company. Unlike buying an an annuity, or the purchase of a structured settlement annuity, when a structured settlement receivable is purchased, no premium is paid to an insurance company. No premium is paid at all.
Certain actors, including some settlement planners and financial advisors, have falsely used the term "annuity" in marketing structured settlement receivables to investors, obfuscating the potential risks to investors, and even the judges tasked with approving them as part of a minor's settlement
In 2012, a California settlement planner submitted an under penalty of perjury affidavit supporting a petiton to establish a Qualified Settlement Fund in San Francisco County (ostensibly for the purchase of the receivables) while asserting in the affidavit that there was "no change in funding asset".
An investment in structured settlement receivables is not the equivalent of someone who becomes a structured settlement payee as the result of the settlement of a personal injury, wrongful death or workers compensation settlement.
The latter becomes a structured settlement payee by virtue of the negotiated settlement consideration in their personal injury or wrongful death lawsuit or workers compensation claim, wherein an obligation to make future perioidic payments is part of the consideration.
The obligation of the Defendant/Respondent or its/their insurer to make the periodic payments in the settlement agreement may be assigned [subject to the terms of IRC 130(c)] to a qualified assignment company.
The assignment company then buys an annuity (or annuities) to fund its periodic payment obligation.
Section 3A(5)(c) of the Life & Health Guaranty Associations Model Act (#520)
INVESTORS IN RECEIVABLES FACE SIGNIFICANT RISK OF LOSS OF INVESTMENT IN THE EVENT OF INSOLVENCY
(5) This Act shall not provide coverage to: (a) A person who is a payee (or beneficiary) of a contract owner resident of this State, if the payee (or beneficiary) is afforded any coverage by the association of another State; or (b) A person covered under Paragraph (3) of this subsection, if any coverage is provided by the association of another State to the person; or (c) A person who acquires rights to receive payments through a structured settlement factoring transaction as defined in 26 U.S.C. 5891(c)(3)(A), regardless of whether the transaction occurred before or after such section became effective".
In other words, in such case your investment the receivables will have the value and utility of something that is best suited for a schmear of butter and jam (or a dollop of baked beans (i.e. toast).
Drafting Notes to Section 3A(5)(c) of the Life & Health Guaranty Associations Model Act (#520) Crystal Clear
"Drafting Note: The exclusion from coverage in Section 3A(5)(c) of any person who has purchased from an original structured settlement annuity payee his or her rights to receive structured settlement annuity benefits and the exclusion of such benefits from covered benefits under Section 3B(2)(n) recognize that the protections afforded by guaranty associations are intended for insurance consumers, such as the original payees of structured settlement annuities. Guaranty association protection does not extend to sophisticated investors who acquire rights to receive structured settlement annuity benefits in the secondary market. These exclusions, however, do not apply to structured settlement annuity benefits that are transferred to children, present or former spouses or other dependents as part of domestic relations settlements or orders, or to other transferees (including donees) who acquire rights to receive structured settlement annuity benefits without providing any monetary consideration. Thus, Section 3A(5)(c) and Section 3B(2)(n) clarify that guaranty association coverage protects structured settlement annuity benefits to which the original payee and his or her family members retain the rights"
What if You Invested in Structured Settlement Receivables while Residing in a State That Hasn't Adopted?
Just remember that in Dec 2018, the National Association of Insurance Commissioners (NAIC) published Statutory Issue Paper No. 160 (finalized April 6, 2019) which expressly stated that acquired structured settlement payment rights are not captured as an annuity or insurance product in statutory accounting. Then go back and read the Drafting notes above!
Investment in structured settlement receivables were never an investment in an annuity, regardless of how they were labeled and marketed by secondary market companies, tertiary market companies, financial advisers to seniors, or certain settlement planners to trial lawyers for the trial lawyers or their clients.
There's a certain inevitability to adoption of the 2017 Revisions to the L&HGA in all states, just like the Structured Settlement Protection Acts
What If You Invested in Structured Settlement Receivables While Residing in a State that Hasn't Adopted and Move to a State that Has Adopted the Model Act?
An attorney source opined that the law of the original residence state would apply.
The big ole "but" is that the "before and after the effective date" clause in the Life & Health Guaranty Associations Model Act takes no prisoners in the states where approved.
Figuratively speaking, that's like standing over the gallows for an agonizingly long time for the trap door to open underneath your feet triggering a swift but violent drop to snap your financial neck.
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
Brain Injury
Burn Injury
Car Accidents
Catastrophic Injury
Construction Accidents
Daycare Injury
Disability
Dram Shop Liability
Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
Employment Practices Liability
Environmental and Toxic Injury
Funding Agreements
Injury At Work
Life Settlements
Mass Tort
Medical Malpractice
Medicaid
Motorcycle Accidents
Personal Injury
Product Liability
Real Estate
Real Estate Litigation
Structured Installment Sales
Special Needs Trusts
Settlement Trusts
Structured Medicare Set Aside
Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Whether structured settlement payments have to be Equal (or Substantially Equal) depends on the Nature of Claim and the Settlement Planning
Do Structured Settlement Payments Have to Be Equal Payments? by John Darer CLU ChFC MSSC CeFT RSP CLTC. Whether Structured Settlement Payments Have to be Equal (or Substantially Equal) Depends on the Nature of Claim and the Settlement Planning Solution being used.
The substantially equal payment requirement applies in situations where:
- There is a non-qualified assignment where a periodic payment obligation is assigned to a U.S. domestic assignment company.
- An immediate annuity is utilized as the funding asset.
What are Non Qualified Structured Settlements and Non Qualified Assignments for Tax Deferral (4structures.com)
IRC Section 72(u) was added as part of the Tax Reform Act of 1986.
An annuity contract owned by a non-natural person is not considered an annuity contract for tax purposes IRC §72(u)(1)(A)
The income on the contract for any taxable year of the policyholder shall be treated as ordinary income received or accrued by the owner during such taxable year IRC 72(u)(1)(B) and also cited in a presenation to the United States Senate Committee on Finance May 24, 2016 JCX 45-16 (May 20, 2016) "By contrast to the treatment of life insurance contracts, if a deferred annuity contract is held by a corporation or by any other person that is not a natural person, the income on the contract is treated as income accrued by the contract owner and is subject to current taxation. The contract is not treated as an annuity contract".
IRC 72(u)(4) Notable Exceptions to Ownership of Annuity by Non Natural Person
This subsection shall not apply to any annuity contract which—
(A) is acquired by the estate of a decedent by reason of the death of the decedent,
(B) is held under a plan described in section 401(a) or 403(a), under a program described in section 403(b), or under an individual retirement plan, (C) is a qualified funding asset (as defined in IRC 130(d), but without regard to whether there is a qualified assignment), What is a Qualified Assignment? (4structures.com) (D) is purchased by an employer upon the termination of a plan described in section 401(a) or 403(a) and is held by the employer until all amounts under such contract are distributed to the employee for whom such contract was purchased or the employee's beneficiary, or (E) is an immediate annuity.
IRC 72(u)(4) (C) and (E) are germane to structured settlements
A qualified funding asset means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States Subject to IRC 130(d).
such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment.
the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,
such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and
such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment.
What is an Immediate Annuity under IRC 72(u)(4)(E)?
For purposes of this subsection, the Code says the term "immediate annuity" means an annuity—
A. which is purchased with a single premium or annuity consideration, B, the annuity starting date (as defined in subsection (c)(4)) of which commences no later than 1 year from the date of the purchase of the annuity, and C. which provides for a series of substantially equal periodic payments (to be made not less frequently than annually) during the annuity period
So there you have it. That's where the equal payments (or subtantially equal payments) comes from.
Why Doesn't IRC 72(u) apply to annuities owned by a Qualified Assignment Company?
Because there is an express exception made in IRC 72(u)(3)(C) for an annuity that is a Qualified Funding Asset under IRC 130(d)
Non Qualified Assignment Solutions with Domestic Assignment Company Where IRC 72(u) Applies
Corebridge subsidiaries American General Life Insurance Company and United States Life Insurance Company in the City of New York through their appointed brokers, where an annuity is used to fund an obligation to make periodic payments. Note that the same product providers offers an alternative niche domestic solution using a funding agreement (in lieu of an annuity) as a work around for where a deferral is desired without going to an offshore assignment company.
Metropolitan Tower Life Insurance Company (MetLife)
Last updated August 8, 2024
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
Brain Injury
Burn Injury
Car Accidents
Catastrophic Injury
Construction Accidents
Daycare Injury
Disability
Dram Shop Liability
Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
Employment Practices Liability
Environmental and Toxic Injury
Funding Agreements
Injury At Work
Life Settlements
Mass Tort
Medical Malpractice
Medicaid
Motorcycle Accidents
Personal Injury
Product Liability
Real Estate
Real Estate Litigation
Structured Installment Sales
Special Needs Trusts
Settlement Trusts
Structured Medicare Set Aside
Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Structured Settlement Annuity Issuers w/ A Ratings Weiss Research by John Darer CLU ChFC MSSC CeFT RSP CLTC
Structured Settlement Annuity Issuers w/ A Ratings Weiss Research by John Darer CLU ChFC MSSC CeFT RSP CLTC
Two life insurance companies that issue structured settlement annuities have earned A- or better ratings from Weiss Research
New York Life Insurance Company A-
Pacific Life Insurance Company A-
"Weiss insurance ratings outperformed 3 to 1." United States Government Accountability Office (GAO)
Weiss Ratings | John Darer Reviews What is a Weiss Rating? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)
Weiss Insurer Reserve Adequacy Index measures the adequacy of the company's reserves and its ability to accurately anticipate the level of claims it will receive. (This factor is measured as a separate index only for property and casualty insurers.)
Weiss Insurer Profitability Index measures the soundness of the company's operations and the contribution of profits to the company's financial strength. The profitability index is a composite of five sub-factors: 1) gain or loss on operations; 2) consistency of operating results; 3) impact of operating results on surplus; 4) adequacy of investment income as compared to the needs of policy reserves (life, health and annuity companies only); and 5) expenses in relation to industry norms for the types of policies that the company offers.
Weiss Insurer Liquidity Index evaluates a company's ability to raise the necessary cash to settle claims and honor cash withdrawal obligations. We model various cash-flow scenarios, applying liquidity tests to determine how the company might fare in the event of an unexpected spike in claims and/or a run on policy surrenders.
Weiss Insurer Stability Index integrates a number of sub-factors that affect consistency (or lack thereof) in maintaining financial strength over time. These sub-factors vary depending on the type of insurance company being evaluated but may include such things as 1) risk diversification in terms of company size, group size, number of policies in force, types of policies written, and use of reinsurance; 2) deterioration of operations as reported in critical asset, liability, income and expense items, such as surrender rates and premium volume; 3) years in operation; 4) former problem areas where, despite recent improvement, the company has yet to establish a record of stable performance over a suitable period of time; 5) a substantial shift in the company's operations; 6) potential instabilities such as reinsurance quality, asset/liability matching, and sources of capital; and 7) relationships with holding companies and affiliates. Last updated July 21, 2025
Structured Settlements FAQ | Ask John Darer Anything About Structured Settlements (4structures.com)
Think before you act and always seek Independent Professional Advice from Structured Settlement Expert John Darer 888-325-8640
Practice Areas:
Admiralty / Maritime Law
Automobile Liability
Automotive Products Liability
Aviation
Boat Accidents
Bodily Injury
Brain Injury
Burn Injury
Car Accidents
Catastrophic Injury
Construction Accidents
Daycare Injury
Disability
Dram Shop Liability
Drowning/Pool Accidents
Drunk Driving Accidents
Electrical Injuries
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Funding Agreements
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Tax Deferral Solutions for Personal Injury Attorneys
Tax Deferral Solutions for Parties Settling Suits with Taxable Damages
Trucking Litigation
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Wrongful Death
Wrongful Termination
Workers Compensation
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