Litigation

A Few Settlement Brokers' "Ethical Skirts" on Lock Ins Could Lead to Changes

By John Darer

According to our sources it HAS been noticed that some structured settlement brokers and settlement planners have a pattern of locking in "any old benefit" to preserve a rate series and then opportunistically taking advantage of the life insurer by submitting a material modification of the payment stream, such as major change of duration.

In some case the life insurer takes a bath on the change. While the cost is not passed onto the broker at the moment it may be in the future. This author understands that a number of options are being discussed to curtail this abuse by the few, that may unfortunately impact the business of the many. Aside from additional charges to the broker that may eventually be levied, repeated changes of his origin needlessly tax the service arms of the insurer at the expense of others.

Full post as published by Structured Settlements 4Real on August 20, 2009 (boomark / email).