New York CPLR 50A / 50B | Pacific Life Offers Structured Judgment Annuity Option
John Darer • December 20, 2017
" From California to the New York Island"
New York has a new structured annuity option to fund New York structured judgments. Pacific Life announced that it will begin writing structured annuities for New York CPLR 50A and 50B structured judgments in 2018, through its New York underwriting company, Pacific Life and Annuity Company. Pacific Life is rated rated A+(Superior) by A.M. Best.
What are New York CPLR Articles 50-A and 50-B?
CPLR Articles 50-A and 50-B, are New York statutes that mandate future damages in excess of certain thresholds be paid in periodic payments. The statutes were established in 1985 and 1986 respectively and proscribe a method for calculating and paying damages in medical malpractice, dental and podiatric malpractice judgments (50-A) and other types of tort liability cases (50-B) .
Pacific Life and Annuity is very strong on period certain cash flows, especially short and intermediate term cash flows which is a good fit for certain elements of damages such as pain & suffering and lost wages. Pacific Life also underwrites medicals competitively. Pacific Life will be no slouch on life contingent cash flows like future medicals.CPLR Articles 50-A and 50-B cases are not for novices. It's not as simple as buying an annuity. There are many nuances and it's important to work with a settlement expert with knowledge of the statutes, relevant decisions and experience.
CPLR 50A and 50 B Calculations and Utility to Parties in Mediation
Working with a competent settlement expert who can run net cost projections using varying elements of damages, who can "talk the talk" and "walk the walk", may be very helpful to parties at mediation to take numbers out of the abstract into reality and enable parties to explore the "what ifs?" in real time.
Other articles by John Darer on CPLR 50A and 50B related topics.
The cap rate on index linked structured settlement annuities is a limit set by the insurance company on the maximum interest rate that can be credited to the annuity based on the performance of the underlying index that also helps provide the downside prtection..
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USAA Life Insurance Company, an A++ rated insurance company, issues structured settlement annuities with 1%, 2% and 3% COLAs. USAA Life structured settlements are exceptionally compatitive on lifetime benefit payments with long duration certain periods for ages under 35.
Owners of highly appreciated NY businesses or NY real estate may benefit from a structured installment sale tax deferral program as an alternative to a 1031 exchange. MetLife's structured installment sale program is now available in NY and in all 50 states. Call 888-325-8640 for more info
A qualified assignment is part of the process to establish a structured settlement that enables a Defendant, Insurer, or Qualified Settlement Fund, to achieve a complete novation of the future periodic payment claim established by suit or agreement, through a substitution of obligors.
An annuity and a structured settlement walked into a bar, how do you tell them apart? 4structures' John Darer reviews the differences for you right here.
A lifetime structured settlement annuity turns part of your settlement recovery into guaranteed income you can’t outlive that is contractually guaranteed by a regulated life insurance company. A lifetime annuity is sometimes referred to as longevity insurance.
Structured settlement annuities can be very helpful to the budgeting process by providing guaranteed income streams and deferred lump sum payments tailored to specific budget needs and time frames identified in the settlement planning process.
Structured settlement receivables are often deceptfully marketed to investors as annuities. When the originating structured settlement factoring company buys structured settlement payments in a structured settlement factoring transaction, they are buying a receivable not an annuity.
Avoid constructive receipt if a structured settllement or structured attorney fee is to be established. Care must be taken to avoid constructive receipt.
