Structured Settlements

Scenario - Introduction

These training scenarios are intended to help you get a feel for the structured settlement process. They are also intended to be a forum for you to ask questions when they come up. Since each case is different, do not expect to be an expert after reviewing this area.  It would be impossible to provide an example of every circumstance that may present itself.

Following is an example of certain situations can come up at any time during a settlement. We have handled thousands of cases and just when we thought we had heard it all, someone throws us a curve.  Following are just a few examples.

• After months of quoting, the claimant's long-lost uncle shows up and wants to invest the money - the case settles for cash.
• We were given the wrong DOB and claimant is actually younger/older than originally thought.  All age contingent quotes are thrown out the window.
• You have made it all the way through the settlement process and now the plaintiff attorney tells you there is a broker working for him/her who wants a split.
• File contact is requesting several quotes from several structured settlement brokers - you find this out after the case structured with our competitor, through an annuity carrier we represent.
• The parties involved in a structured settlement don't understand this basic premise:   That the agreement is for the periodic payments, not an annuity!
• You get a call that the case has settled - with rates that expired 6 months ago and the plaintiff attorney doesn't understand why the benefits have changed.

What to Expect from the Scenarios

The samples quotes, letters and documents are just that - samples. As we work together, your style will become apparent and we will adjust accordingly. Two cases may require distinctly different approaches.  For example, if you have a long-time friend who happens to be an adjuster, the confirmation letter either won't be necessary, or it will take on a different tone than an adjuster you have never met. The level of professionalism is always there, but we think it helps to customize our services based on a particular file situation. Think of it as personalized service.

Preliminary File Phase (more is not always better...)

In the preliminary file stage, you (and SSI) may end up doing a lot of needless busywork if you don't ask the right questions and listen to the answers. Adjusters and defense attorneys are not interested in wasting time. Keep in mind that every piece of paper you put in front of them will either be considered helpful, or an intrusion. It is natural to want to be involved, but we work at the direction of the client. That means we stand ready to serve, but we don't overwhelm or annoy.

Also remember that the staff at SSI has been doing this for a while, please don't hesitate to think of us as a team. By working together, we both benefit. You will get additional training and guidance, and we will get a feel for your style which ultimately works in your favor. An added benefit to the team approach is service coverage. If you are unavailable, your clients have an established relationship with us (your backup). This has proven invaluable on many cases. The client is proprietary, but our services are collaborative.

Another important note: We have found over the years that about one third of the files we open settle with a structure. Each case deserves our best efforts, but don't let your world revolve around one case -- blinding you to other potential cases.

Active Quoting Phase

The delicate balance of the preliminary phase can get even more challenging here. You basically waited on the sidelines before, but now you will need to become an active participant in the process. This phase requires a thorough analysis of the past activity on a case, the personalities involved, and the intentions of the client.

Although you will be relying on the home office for quotes, it is a good idea to know what is involved in the process. Questions will come up that you should be able to answer in order to maintain the settlement momentum. By that, we mean if any of the parties looks to you for an answer to a basic question, being able to answer it on the spot will help things flow.

An example of the type of question that can come up is "What do the A.M. Best ratings mean?" We can provide you with an overview sheet that gives the criteria and meaning behind the rating. Not something you have to memorize, but you can still produce an answer quickly.

Settlement Phase

Once a structured settlement plan is accepted, the whole process shifts from providing service to requesting information and actions from others. The documentation phase can be expedited if the proper groundwork is set in the prior two phases. One of the most difficult parts of getting the paperwork completed is a problem with perception. The bottom line is that the settlement is based on future periodic payments NOT THE ANNUITY. This should be made clear during any conversations with the plaintiff and or their attorney. All of the supporting documentation must make this clear in order to comply with IRC 104(a)(2) and 130(c).

Level of service - your call

In the beginning, SSI will guide you through the process. We hope that you will begin to feel comfortable with our role and go with it.

As with any professional service, there is more to be done than just selling a product and receiving a commission. There are questions to field, marketing services to offer, letters to send all prior to sale. During settlement, there are critical administrative steps. And even after settlement, there is still work to be done. We are available, and even prefer, to cover these areas.