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Structured Settlement Brokers: How To Choose The Best?

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Walking into court or negotiations for your structured settlement hearing and not having a broker with you is the same as not having an attorney for a court appearance. It's just a bad idea.

What is a Structured Settlement Broker?

It is someone who is appointed by the insurance company or the plaintiff in a personal injury case. The settlement funds for the injury from the defendant, which is typically the insurance company, are assigned to a third-party assignment company, which then purchases a structured settlement in the name of the party injured. They do, of course, have to meet minimum requirements, as set forth by the Justice Department. (See the bottom of the page for a complete list of requirements)

The structured settlement broker (see a list from the Department of Justice) typically can perform the following steps for an in behalf of the injured party:

  • Proposing a lump-sum arrangement.
  • Proposing settlement payments or a structured settlement arrangement.
  • Aiding in the resolution of the case.
  • Choosing which insurance company is used.
  • Takes out the emotion of the process and gives the injured party the best advice to make the right decision.

Does The Plaintiff Need a Broker For The Structure Settlement Case? 

Yes! In the same way that the plaintiff needs their own attorney. The defense will have their specialized representation looking out for their best interests. You, as the plaintiff should have your interests protected as well by a specialist. The broker will work alongside the attorney to ensure their client's needs are completely looked after and he or she receives the best deal and terms available.

In very complex cases, there may be a need to bring in a comprehensive settlement planner into the process. This planner is a combination of a plaintiff broker and a settlement expert. They have the unique ability to write comprehensive and sometimes complicated structured settlement policies. They can also handle many other issues which can come up in regards to the structured settlement process that otherwise would have to be delayed. If there are government benefits involved, trust planning, or Medicare planning, then it is best to have a comprehensive settlement planner in the room.

Other topics: structured settlement annuity

Getting Your Free, No-Obligation Quote

After making the decision to sell and find someone to buy your structured settlements, it’s important to shop around for the best quote. Do your research to find a trustworthy seller that can provide you with the best service and the best deal. Take the time to ask for advice or recommendations from lawyers or accountants. Do all that you can to find a buyer that’s reputable and has a proven track record of success.

You can also call us to find out how much your structured settlement or annuity is worth. We can recommend trustworthy factoring companies to work with.

Having experts in your corner is not a bad decision. Ever. This is an emotional time for you and having experts looking after your best interests will keep the other side from attempting to strong-arm you with "this is a take-it-or-leave-it offer" statements. They can help you in many areas, such as:

  • Medical needs in the past, present, and future.
  • Outstanding leins.
  • Day-to-day income requirements.
  • Probate issues.
  • Bankruptcy issues.
  • Future financial goals (college, business, travel, retirement, etc.)
  • Eligibility for government benefits and/or pensions

Putting Everything in Writing

Leave nothing to chance and get everything in writing, including the fees you will be charged by the experts you have hired. Do not accept a "we will take care of that later." No, you need to know all charges going in so you don't get a surprise bill at the end that will cause you undue stress.

By having everything in writing also means there won't be any misunderstandings either. Everyone knows what their job is and what their tasks are to accomplish.


Minimum Requirement For a Broker Per Department of Justice

(1) The broker must have a current license issued by at least one State, the District of Columbia, or a Territory of the United States as a life insurance agent, producer, or broker;

(2) The broker must have a current license or appointment issued by at least one life insurance company to sell its structured settlement annuity contracts or to act as a structured settlement consultant or broker for the company;

(3) The broker must be currently covered by an Errors and Omissions insurance policy or an equivalent form of insurance;

(4) The broker must never have had a license to be a life insurance agent, producer, or broker revoked, rescinded, or suspended for any reason or for any period of time;

(5) The broker must not have been convicted of a felony; and

(6) The broker must have had substantial experience in each of the past three years in providing structured settlement brokerage services to or on behalf of defendants or their counsel.

Source: https://www.law.cornell.edu/cfr/text/28/50.24

Not Included: medicare set