4structures.com, LLC offers transparency and protection from fraud and misrepresentation through a Structured Settlement Affidavit (“SSA”) or Structured Settlement Declaration (“SSD”), which:
1. Transparency. Certain business practices, or past allegations of certain business practices, involving certain other members of the industry, undermine confidence of participants in the settlement process, create needless biases and impugn casualty insurers and participants who do not engage in these alleged practices that may be unethical, may be perceived as unethical, or even illegal. We are committed to protect the integrity of the structured settlement process as everyone ultimately benefits from an honest system.
2. There is simply no reason for any party to hide the cost of any structured settlement being offered, or any associated costs. It is common on any significant case for both sides to engage a structured settlement expert or settlement planner who independently advises their clients, but co-broker structured settlement annuities. It is possible however, that they may be retained at different times. It is well established in two IRS Private Letter Rulings that knowledge of the structured settlement cost does not put the payee in constructive receipt and does not affect the income tax exemption afforded to structured settlement recipients. New York State General Obligations Law and the laws of several other states, Florida, Massachusetts and Minnesota require cost disclosures as part of their structured settlement protection acts.
3. Factoring . It is common knowledge that many structured settlement consultants who place structured settlements also consult with structured settlement annuitants in response to queries about transferring the structured settlement payment rights to a settlement purchaser in exchange for cash. We believe that such compensation is acceptable if professional services have been rendered and the nature of the compensation is disclosed to the selling annuitant, the amount of compensation is reasonable and there is no law or local court rule being violated. Bronx, New York is one example where the court’s required structured settlement affidavit for infant compromise cases prohibits the structured settlement broker from later participating financially or otherwise in the factoring of structured settlement payments in the case that is the subject of the affidavit without prior Court approval.
The Structured Settlement Affidavit is a series of affirmative representations and warranties issued in writing for a case on which we are involved. These certify among other things that we:
All parties and the courts can feel comfortable that the facts and the numbers are indeed as they are represented when we handle, or participate in the handling, of a case. The warranty section of the SSA or SSD would expose us to civil and criminal liability if any statement were false.
Sample Bronx New York Structured Settlement Affidavit click here
Long after the structured settlement has been established we want or clients to contact us with questions and we want to be there for them as they move on with their lives, or experience life transitions where our experience may be useful.
Structured settlement factoring is a controversial topic but it is legal. Unfortunately the sales practices are unregulated. 4structures.com LLC President John Darer, who is recognized as the Structured Settlement Watchdog®, has been one of the structured settlement industry’s leading advocates in the charge to clean up the structured settlement secondary and tertiary markets for more than 20 years. Rather than having our clients fed to wolves and vultures, we may provide education and independent professional advice (pro-bono where appropriate), but do not participate financially in the factoring of payments from structured settlement in the cases where we brokered or co-brokered the structured settlement. We do not provide any case documentation to structured settlement factoring companies or buyers of structured settlement payment rights on such cases. For more information in this regard, please click here
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Last updated May 22, 2025
