What is a Settlement Agreement and Release (SAR)?
John Darer • February 11, 2025
The important role of a release in establishing a structured settlement
A settlement is a compromise between parties to
a legal dispute or lawsuit
A settlement may be reached before, during or after a trial.
- The terms of settlement and the rights and responsibilities of the parties are memorialized in a document called a Settlement Agreement and Release.
- A Settlement Agreement and Release is an enforceable promise not to proceed with a legal claim in exchange for compensation in cash and/or future periodic payments (structured settlement).
- A structured settlement offers safe, secure and guaranteed income for payees.
- There are also tax advantages. In order to receive tax advantages of structured settlements, the Settlement Agreement and Release must be drafted carefully so that the future periodic payments are part of the considerati8on for the settlement. Please refer to the structured settlement flow chart below.
A Settlement Agreement and Release may also be known as
- Confidential Release and Settlement Agreement
- Periodic Payment Settlement Agreement and Release of All Claims
- Settlement Agreement and Release of All Claims
- Settlement Agreement and Mutual Release
Last updated February 11, 2025
In the structured settlement annuity industry, dominated by many of the largest life insurers in the United States, Independent Life Insurance Company (ILIC) achieved significant milestones in 2024. Good news, positives and some concerns discussed in this lattest post.
Prudential and Pacific Life have once again been named among the world's most ethical companies. Prudential received the award for the 11th time., Pacific Life received the award for the 8th time. Prudential and Pacific Life are leading issuers of structured settlement annuities.
John Darer reviews structured settlement annuity market expansion featuring 3 new entrants Athene Life & Annuity, American National (ANICO) and Puritan Life as well as MetLife's development of a best in class
John Darer reviews the primary structured settlement market, secindary market and tertiary structured settlement markets
A structured settlement annuity does not drive the tax consequences of structured settlement annuity payments. It is the type of damages the structured settlement annuity payments represent, as reflected in the relevant settlement documentation executed by the settling parties
Structured settlement beneficiary death claim. An executor cannot change the beneficiary of a structured settlement annuity. StructuredTypically, settlement agreements permit the Payee to name or change a beneficiary, provided such change is in writing and submitted to the Assigmment Company or annuity issuer in writing and in proper form.
Which life insurance companies write structured settlement annuities for personal injury and wrrongful death settlements in Bronx, Brooklyn, Staten Island, Queens, Manhattan, Long Island, Westchester, Erie, Rockland, Albany,Monroe in 2025 through licensed representatives?
Why Structured Settlements? Because Certain Sells® Structured settlements offer predictable income streams, which can be appealing to rein in uncertainty. John Darer reviews some other reasons that structured settlements are increasingly being used to settle cases:
Structured settlements have roots that trace back more than 100 years, from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as the core personal injury settlement planning tool it is today.
Plaintiff lawyers and their clients settling taxable settlement must be mindful of the effect a taxable settlement will have on plaintiffs, including their spouses and dependents, who are:
enrolled in the Health Insurance Marketplace and receiving Advance Premium Tax Credits
