Frequently Asked Questions Regarding Settlement Documents

Are there differences in the assignee corporation supplied by the annuity providers?

Not much. Most life insurance companies that provide structured settlement annuities provide small "service" corporations whose only responsibility is to own and administer the annuity policy. The advantage of such a company is that it is not subject to creditors since it has no assets other than the annuity policies. Those life insurance companies that offer subsidiary life carriers or property/casualty affiliates as assignees also use the subsidiary to merely hold the policy and administer it. Many life insurance companies that issue structured settlement annuity policies also supply some sort of parent guarantee or surety bond to the parties, guaranteeing the assets and responsibilities of the assignee. The exact arrangement depends on the life insurance company.

In a structured settlement involving a qualified assignment. the claimant insists that the defendant/carrier remain liable in case both the life insurance company and the qualified assignee company default. If the defendant/carrier agrees to remain liable for the future annuity payments, can they still use a qualified assignment?

How important is it that a settlement agreement be drafted if a release has been signed by the parties?

Why do we insist that a self-insured defendant commit to a Qualified Assignment?