Structured Settlement Investing | Investing in Other People's Structured Settlements

John Darer • March 19, 2020

Beware Pie in the Sky Sales Pitches from Familiar Sources

Should you trust any settlement planner pitching you to buy investments in other people's structured settlement payments?


Maybe not, when the settlement planner (individually, or through his or her company) has:


1.  Misrepresented the investments as annuities when they are not, in multiple publications addressed to potential investors. The National Association of Insurance Commissioners has already opined that factored  structured settlement payment streams are neither annuities nor insurance products in NAIC Statutory Issue Paper 160. The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories

2.  Misrepresented to investors on Twitter that "investing in a structured settlement annuity is legal in all 50 states" knowing beforehand that no buyer of structured settlement payments rights or investor is actually buying a structured settlement annuity, which remains owned by a qualified assignment company even after there is a partial or full transfer of structured settlement payment rights.

3.  Misrepresented to investors that investors are entitled to statutory guarantees that apply to primary annuitants, when many states expressly exclude such investors. If the factored structured settlement payment streams were in fact annuities, as has been advertised by the settlement planner, the settlement planner could be violating laws of multiple states that prohibit such advertising.

4.  Opined that the risk of investing in factored structured settlement payments as being on par with United States Treasuries, ignoring, or omitting the transactional risks associated with such investments. Had Linda Wall and her husband invested in United States Treasuries they would not have lost their money.

5.  Marketed itself as a plaintiffs' advocate while advertising "maximize profits" with respect to its structured settlement factoring business, a ridiculous statement that showcases the conflict of interest. Can the settlement planner work both sides to " "maximize profits" to the seller when the seller is only receiving pennies on the dollar?


Beware  the wolf, the lion, tiger or bear in sheep's clothing.

The "market" is unregulated.

settling parties shaking hands at the end of the settlement negotiations
By John Darer September 22, 2025
John Darer reviews qualified assignment best practices. It starts with an understanding that a qualified assiignment is an "assignment of a liability to make periodic payment as damages" of the charactaer described in IRC 130(c) and IRC 104(a)(2) or IRC 104(a)(1)
Weiss Ratinggs  of structured settlement annuity issuers
By John Darer September 22, 2025
John Darer reviews Weiss ratings. Weiss ratings became the first insurance rating organization to issue independent financial strength ratings for life and health insurance companies.
By John Darer September 17, 2025
The Allure of "Convenience" is a Tax Trap . QSF Qualification is not a single moment in time, but rather a continuing obligation to operationalize all the requirements, as well as those required for creation.
qualifed assignment release and pledge agreement
By John Darer September 15, 2025
A Qualfied Assignment Release and Pledge Agreement (QARP) is a type of qualified assignment that gives a structured settlement payee a security interest in the qualified funding asset pursuant to the Uniform Commercial Code (UCC).
Indiiduals with Disabilities Education Act
By John Darer September 13, 2025
It bears remembering that, prior to 1975, children in the USA with intellectual disabilities, physical disabilities and even sensory disabilities were not guaranteed access to a public education.
structured settlement beneficiary
By John Darer CLU ChFC MSSC CeFT RSP CLTC September 12, 2025
"All payments From a Structured Settlement Are Guaranteed" ?
woman surprised when she discovers something
By John Darer September 6, 2025
Does a Structured Settlement Have a Free Look Period like Life insurance? The Shocking Misleading Answer Provided by AI.
qualified settleent fund and QSF
By John Darer September 3, 2025
Invalidation of Structured Settlement Arrangements Under IRC § 130. If the QSF loses its status due to revocation/ termination of the governmental authority’s continuing jurisdiction, any structured settlement arrangements pursuant to IRC § 130 become null and void.
most infomative structured settlement websites
By John Darer August 26, 2025
The 4structures.com website is one of the most comprehensive structured settlement resources, particularly for those who want detailed, expert-level information, according to Google AI
most informative
By John Darer August 22, 2025
Based on Grok's review of prominent sites as of August 2025, 4structures.com (including its associated blog at structuredsettlements.typepad.com) stands out as the most comprehensive. Run by structured settlement expert John Darer, it offers detailed guides, and specialized insights
More Posts