Structured Settlements

Structured Settlement Steps

THEORETICALLY, these are the steps involved in a Structured Settlement:

File opens - SSI inputs into database for tracking. Occasional status reports will be sent out to the broker with a request to update any file information that may have changed. This is a good prompt for follow up call to the file contact.

Preliminary quoting/information - Contact with the parties, preliminary quotes, assimilating information to fine-tune quotes.

Negotiation Phase - May quote and requote several times at this point. Case will either settle, or be delayed until parties can narrow the gap between offer and demand. It is possible that the case will settle for cash at this point.

Attendance at a settlement conference may be required. Phone coverage may be sufficient, with follow up fax/mail proposals.

Attorneys may request to preview documents and may have other questions that will need to be worked out before a structure of any kind is accepted. Requests at this point may be merely a way for one side or the other to establish control. We are here to respond and take care of any requests.

Settlement Phase - If the case has settled with a structure, the confirmation process begins and sample documents are circulated.

Settlement Agreement: The document that makes it all formal. Includes the periodic payments and cash as the consideration for settlement. The language acknowledging the assignment agreement is also included.

Assignment Agreement: The document that transfers the obligation to make the agreed upon future payments. The obligation is transferred from the defending insurance company to the third party assignee.

Application - This will be completed by our office and is not sent out for signature on assigned cases. (Because the owner of the annuity is the assignee)

CASES INVOLVING MINORS:

Each state has their own rules governing payments to minors. As a general rule, minors cannot receive payments directly, thus Guardianship/Conservatorship is required. This does not apply if payments from the structure are delayed until the age of majority. (except for incompetent claimant situation)

Funding - Working out the logistics of purchasing the annuity. Making sure the check is made out to the appropriate company for the correct premium including the assignment fee, if applicable.

Post Settlement Phase - Annuity contracts are issued and distributed to the settling parties. Address changes and other customer service requests are handled by the home office.