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?

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

Typically the standard release language will not contain a full description of the financial terms of the settlement when a structure has been accepted. In addition, releases seldom provide a full description of the terms of the qualified assignment. Since both of these areas are critical elements of the settlement with important information for future reference, it makes sense to draft a separate settlement agreement that clearly indicates the intent of both parties.

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