Monthly Archives: July 2014

Independent Professional Adviser to Your Rescue

The Independent Professional Adviser to Your Rescue:  Going Up Against the Insurance Giants

When Transferring Your Structured Settlement Payment Rights


Let’s go over some real life collisions/accidents in California that ended in settlements: 


Settlement:  $2,409,000.00-“Wrongful Death Arising Out of Traffic Accident Involving Truck-Insured’s truck driver attempted to make a left turn across highway when an auto coming in the opposite direction struck the side of the trailer.” AIG Claims Archive Search


Settlement:  $2,063,000.00-“The insured operates auto repair shops.  A vehicle was involved in an accident, which killed the driver and injured the passenger, after being worked on at the insured’s shop.  It is alleged that the insured ground down the brake rotors too far, installed the wrong brake calipers, and when rotating the tires, placed the tires with less thread on the rear instead of the front.  Testing concluded the rotors had been ground down past applicable limits.  There was no difference in the thread in the front and rear tires.  The police reconstruction test concluded the accident was caused by operator error-driving too fast on a wet roadway.  Insured accident reconstructionist concluded the same.”  AIG Claims Archive Search 


Settlement:  $11,036,000.00- “The insured is a retail pharmacy.  The insured’s pharmacy had been filling prescriptions for a minor patient over a 14-month period.  The patient was receiving a drug used to control a seizure disorder and was seizure free over that period of time.  The pharmacy misfilled the prescription with the wrong dosage of the drug.  The patient suffered an overdose of the drug.  The patient was treated and considered to have recovered, but suffered significant complications several weeks later as seizures returned.”  AIG Claims Archive Search


Where does all this money come from?  Insurance companies are backed by underwriters, that are backed by larger insurance companies that are backed by even larger multinational insurance companies, that aren’t even called insurance companies anymore at this level; they’re called “Financial Institutions” that sell and buy “financial products”, like annuities, that make up structured settlements.


The cases above were settled because the money was made possible by the giant Financial Institution, the annuity issuer, who in the end gets notified if one of these claimants decides to sell parts or all of their settlement.


If you were to sell part or all of your settlement, you will be going up against this type of insurance giant, because they get notified if you decide to sell.   It’s the law.   Requirements of California Insurance Code §10139.5(f)(2) requires that a notice of the proposed transfer and the application for its authorization be filed with the court and served on all interested parties not less than 20 days before the scheduled hearing on any petition for approval of a transfer of structured settlement payment rights.


This includes the insurance giant that issued the expensive annuity, the underwriters, and the original insurance company.  Are you prepared to go up against these insurance giants?


Transfer Companies are big, insurance-type companies that communicate everyday with the insurance companies.  By obtaining independent professional advice, you can step outside of the insurance arena and be represented independently.  Let your independent professional adviser protect you and rescue you from the insurance giants.


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AFG - Independent Professional Adviors

AFG – Independent Professional Adviors

Southern California Structured Settlement Transfers

AFG Newswire July 12, 2014 12:18 p.m. PDT

 Southern California Structured Settlement Transfers

eFiling Speeds Up Court Time for Structured Settlement Transfer Cases-But Not By Much   If you haven’t noticed, the Courts are overwhelmed with cases and paperwork, statewide.  Electronic filing saves the courts time and saves petitioners and attorneys time and paperwork.   The job of filing court documents belongs to the transfer company.  So why would the seller of structured settlement payment rights need to worry whether a Superior Court mandates eFiling or not?

 Southern California Structured Settlement Transfers

Southern California Structured Settlement Transfers

If there is mandatory eFiling in your county, submitting the legal documents through eFiling will be quicker.  Be forewarned.  Have your documents ready.  Have your mind made up if you want to sell your payment rights, because chances are there won’t be a lot of time to think about it and to dig out that annuity contract that’s buried in your attic somewhere.   A good strategy is to meet with an independent professional adviser before hand, so you do not feel railroaded into signing any disclosure statements and contracts because of the swift pace of “eFiling”.  The independent professional adviser can explain how inflation reduces the value of your payment rights, any tax implications you might face, and if you have personal financial struggles that could effect the outcome of your lump sum, the independent professional adviser can alert you to potential pit falls.  The transfer company does have attorneys that act on your behalf, but not for this purpose. Southern California Structured Settlement Transfers by county: Orange County Superior Court has mandatory “eFiling” for structured settlement transfer cases (general civil), amongst many other types of cases.  Filing can take place 24 hours a day, 7 days a week.  This saves a lot of time and your case, if routine, could take 30-45 +/- days.   Los Angeles County Superior Court does not have mandatory eFiling for general civil cases.  They do offer “eCourt Online” for small claims court only.  For petitions to LA Superior Court, your case could take longer because they are backlogged, 45-90 days +/-.   San Bernardino County Superior Court does offer General Civil online preparation and filing through “TurboCourt”, their eFiling system.  It is not mandatory, and not all documents are submitted online.  Your case can be quicker, 30-60 +/- days.   Riverside County Superior Court has a “Electronic Fax Filing” or “e-Fax” for a lot of money per document; anywhere from $140-$255-$450.  The “e-Fax” is not mandatory.  30-90 +/- days for a routine structured settlement transfer case to go through in Riverside County.

Structured Settlement Attorney

Independent Professional Adviser Interprets Disclosure Statement

By AFG NewswireStructured Settlement Advisor

July 9, 2014 11:56 a.m. PDT


Independent Professional Adviser Interprets Disclosure Statement

Structured Settlement Transfers are Still Confusing


For an interpretation on money matters in the disclosure statement see our last article, “The Disclosure Statement for a Structured Settlement Transfer:  What They’re Really trying to Tell You With the Numbers”.  In this article, we interpret the rest of the disclosure statement.


California legislature sets the standard for the disclosure statement.  The California legislature makes the transfer company follow an exact format, with exact words to write, to inform you the consumer what is going on; this is why the disclosure statement confuses the consumer, because it is literally taken from the California Code of Insurance.


There are typically 2-4 pages.  The first pages announces the “sale”, and breaks down how the money went from the original price to the price with which you walk away, as is stated in the article we mention above.


The second page explains why you need an independent professional adviser and advises you to get independent professional advice.  The courts want you to have an independent professional adviser, and state that you have $1,500.00 to accomplish this.


On the second page, it also states that you will not receive any money until a court approves the sale.  –Even more reason to get help from an independent professional adviser.


Then the document goes on to explain how you can cancel the contract before court approval, but you have to do it in writing.  You do not need any special form.  You send your written cancellation to the transfer company.  Make a copy!  There is a time frame here.   Contact your independent professional adviser for guidance on the time frame.


If there is a third page, it is giving you information on how to contact your District Attorney if you feel you were mistreated, or mislead.  Then there is room for your signature.  THIS IS NOT THE CONTRACT.  This document is submitted in court.  Without the disclosure statement, the sale will not go through.

Structured Settlement Attorney

Successful Structured Settlement Transfers in Los Angeles

What Makes Successful Structured Settlement Transfers in Los Angeles Superior Court


For Successful Structured Settlement Transfers in Los Angeles:

Be Prepared for Your Interview with the Judge

The types of questions the judge may ask you:

  1. Have you provided a declaration for the transfer company?  This is a financial income, and outgoing and asset report; spousal income, and outgoing, and asset report, currently and in the future.  DO NOT OVERLOOK THIS.
  2. The court will see if you appear to understand the terms of the transaction.
  3. Have you received, read, and understood the disclosure agreement?
  4. How old are you?  Are you married?  Do you have children?
  5.  Are you a student?  Are you employed?
  6. Have you ever attempted to sell any portion of the payment?
  7. What are you intending to use the money for?
  8. Were the payments intended for medical care or living expenses?


The judge is looking to see if you have an independent professional adviser.  If you don’t, they want to see your “waiver” or the document that states you are “waiving your right to have one”; plus documents on your dependents if applicable.


The Judge Looks for Compliance by the Transfer Company

The transfer company has a lot of responsibility to make a successful transfer happen.  They need to get the disclosure statement to you ten or MORE days before you SIGN and COMPLETE that disclosure agreement.  The transfer agreement can’t have any other language in it that changes the intent of the law, if it does, the case will be thrown out.


Successful Structured Settlement Transfers in Los Angeles, can also be done with the use of an Independent Professional Advisor.