Frequently Asked Questions Regarding Settlement Documents

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

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?

No. In such case the guarantee by the defendant/carrier nullifies the qualified assignment agreement. If the claimant agrees to a qualified assignment, the defendant/carrier will never be liable for future payments. The qualified assignment agreement is designed to have the assignee (3rd Party Owner) completely and irrevocably take the place of the defendant/carrier in the line of responsibility for the future annuity payments. The first guarantor is the life insurance company that issues the annuity contract, and the second and final guarantor is the assignee corporation.

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?