Litigation

Geez when I read this "belly flop" from someone I understand to be one of the leading all time settlement producers in the industry I almost fell off my chair:

"For defendants, structured settlements allow payment guarantees and obligations to shift from the defendant to the assignee life insurance company issuing the annuity. Defendants are no longer required to produce a lump sum payment upfront".

From Structured Settlements Offer Safe Haven In Uncertain Times, Patrick Farber, Ringler Associates, Newport Beach, CA May 2009, reported as was posted on the website of the Litigation Counsel of America 745pm EDT August 21, 2009

The actual sequence of events involves a periodic payment obligation, a shift of that obligation from the defendant or defendant's insurer to one or more qualified assignees who THEN purchase one or more annuities from a life insurance company ( or companies) issuing them.

Please refer to the structured settlement flow chart for reference

I'm totally at a loss as to why (in what is otherwise a good piece) a seasoned professional like Patrick Farber would state something as bogus as "Defendants are no longer required to produce a lump sum payment upfront". Along with the transfer of the obligation to the qualified assignee goes consideration which includes the annuity premium.  Anyone disagree that such consideration is a lump sum payment up front?